Preparing for a Big Purchase | Cleveland Bradley County Teachers Federal Credit

Is it time for a vehicle upgrade? Or are you house-hunting? Appliances on their last legs? Whatever it is, making a big purchase can be a stress-inducing event.

Sometimes you can’t predict when disaster will strike and you will find yourself in need of something that is going to cost a pretty penny. When you know that a big purchase is coming up though, you can plan and prepare in order to make the purchase without wondering where your next meal is going to come from.

How to Start

Buying a new house or car is generally something you can prepare for and find the best timing to move forward on. Appliances or other household items can be a little harder to predict, although if you are keeping up with regular maintenance, you can develop a pretty good idea of when they will need to be replaced.

In order to begin preparing for a big purchase, estimate your costs. Make sure you consider the cost of installation, delivery and haul-away of whatever it is you are replacing.

Once you have a general idea of what your costs are going to be, set a savings goal for slightly higher than the total. Prices can always fluctuate, especially if it will take a while to save enough to start the purchase.

Check into financing options long before you ever start shopping so you know exactly what to expect. Do your research on interest rates as well, and make sure your savings goals account for fluctuations in the market. Create a separate account that a monthly amount can be deposited into. Take things slow and don’t get frustrated—every dollar is a dollar closer to your goal.

Extra Steps

Once you have done your research and created a savings plan, there are some additional steps you can take in order to reach your goal.

Saving money typically isn’t a fast process, and while you shouldn’t rearrange the rest of your life in order to save enough to make your purchase in a hurry, there are some things you can do to speed things along. If you know your car is really struggling or your fridge and dishwasher are both on the fritz, seeking a short-term loan could be a viable option.

You could also consider picking up a side gig to increase your income.There are lots of options that offer a lot of freedom so you are still in control of your time. Even something as simple as hosting a garage sale or listing some goods for sale in an online market can be a great way to help amp up your savings.

Consider your timing when you do decide to purchase, particularly if you are looking to purchase a home or a car. If you can wait for an end-of-the-year sale or when the home market is doing well, wait. Catching seasonal sales is also a great time to replace appliances or other large home items.

No matter what it is you are purchasing, the more prepared you are, the smoother it will go. Do your research, choose your timing and build up your savings. You will be cruising in your new car or running your new washing machine in no time!

Want expert advice and the financial tools to make a big purchase? Contact us to get started.