In life, figuring out how to stretch to the ‘larger life purchases’ can be a tough ask. These larger purchases are often defined by the big life implements, such as educational courses, a large deposit on a house, or a brand new vehicle that works for you and your current budget.
Planning for these expenditures can be a tough ask because, for most people, they require a good deal of saving in order to meet. It’s also important to think about how certain savings can be aided, perhaps by investments should we wish to take that risk, ISAs, or other interest-gained investment accounts.
Stretching to the larger life purchases, thankfully, is possible, provided we can assess value appropriately, discipline our spending, and move forward to the goal we’ve set. With that in mind, let’s consider the following:
Wait For Depreciation
Often, the value of a large purchase, like a vehicle, is worth waiting to depreciate, because year-on-year you may be able to purchase the same item for much less of an investment. For instance, always purchasing phones that are one or two models behind the most-recent release can help you net hundreds of pounds worth of savings. Purchasing a used or third-hand vehicle will help you do the same. It’s important to identify which investments will depreciate in value but retain their utility such as these possessions, and which wouldn’t, such as a university course. Then you can make a more accurate timeline of your saving goals.
Consider Additional Support
With some large investments, you may be able to gain appropriate professional and perhaps subsidized support in achieving them. For instance, mortgage companies that cater specifically to teachers, ex-forces members and medical staff will often help you seek a better deal, lower your deposit for the same terms, or provide a lower interest rate in the loans you gain. It might be worthwhile to assess if this is relevant to you. Certain dealers of valuable goods, too, may be keen on helping you find the model and make you need, such as the best MG dealers keeping in mind your needs to help you invest in a brand new vehicle customized to your financial situation.
Rounding Up Purchases
Saving is often best achieved through incremental small additions to your savings pot, as opposed to dividing huge portions of your paycheck to it week after week. The latter is a good way to save of course, but less feasible if you have a family and household to run, and a tight income to share. Instead, rounding up every purchase you make to the first, second or third pound can help you easily calculate how much more you need to spend at the moment while giving you a chance to accumulate funds in a pot. Apps like Monzo, Starling and others can do this automatically for you, but having a special section in your wallet or purse for saving change can also help.
With this advice, you’ll be more able to stretch to the larger life purchases as necessary.