There’s nothing like the gravitational pull of a new purchase you absolutely 'need’. Whether you’ve got your eyes on a motorbike, an engagement ring, or an original Pac-Man arcade machine, when you decide you want something, you want it yesterday.
But no big-ticket item is worth going into debt for. And with the right account, you could earn a bit back while you save for that banana-shaped lounge that will ‘complete’ your living space.
We’ve got five easy steps to help you save for that big-ticket purchase.
1. Set a timeframe.
Setting dates to work towards in your saving will make you more likely to succeed. Set a deadline (with our handy savings calculator for example), then work backwards. If you want to save $3,000 by Christmas, how much will you need to put away each pay cycle? Or flip it – if you can afford to save $150 a fortnight, how long will it take you to reach your goal? Fix the date. Put it in your phone. Write it on your calendar. Tattoo it to your hand (maybe don’t do that, but you get our drift).
2. Keep your savings separate.
Nothing makes your goal seem more real than opening a savings account dedicated to your next big purchase. It’s so new, so full of promise. Putting money into it feels like looking directly into your bright future. Keeping these funds separate makes it easier to see how close you are to your goal. The interest you earn will help grow your savings, and by keeping your savings separate from daily finances, you won’t be tempted to dip into your nest egg.
Look for a savings account paying a healthy ongoing rate of interest, like our HomeME savings account – made especially to help you save for your next big thing. If you need a helping hand understanding the best way to split up your daily expenses from your hard-earned savings, check out our article on mastering bucket budgeting.
3. Make automatic transfers to your savings.
It might seem logical to save whatever is ‘left over’ in your account after you’ve paid for your bills and other expenses. But setting up automatic transfers from your everyday transaction account makes it so easy to save without much thought, as the money is gone before you have a chance to spend it.
If you’re the type of person that is counting down the hours till your next pay day, then auto transfers would be the best way to make your savings a top priority.
4. Share your goal with others.
Don’t keep your savings goal to yourself. Let family and friends know about it. They can hold you accountable, help you stay motivated, and might even chip in with a cash injection on special occasions like birthdays, Christmas, or Mondays.
Being open about your goals also helps you set boundaries on your spending habits with loved ones, to avoid social or lifestyle creep making you live outside of your means.
5. Use cute stickers to reward your progress.
Just like little kids respond to gold star stickers, visually marking small milestones can be a great motivator for adults too. Don’t spend all your dosh buying the rewards, though; sometimes a simple smiley face stamp can be enough to keep your savings balance climbing.
Saving for something major is a great goal to have. You get the satisfaction of achieving it and whatever amazing thing you’ve decided to save for. While it might not be instant gratification, nothing is worth a mountain of debt.
So go buy yourself some gold stars and you’ll have your new car/motorbike/hot air balloon before you know it.
Save for your next big thing with ME.
Whether it’s an epic holiday, your first home, or your dream wedding, our highest interest savings account, HomeME is here to help you save for your next big thing.
Find out more about HomeME
This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.