Have Your Cake & Eat It Too – Budgeting For Major Purchases

Whether it’s a new car, an updated kitchen, or that holiday away you have always been looking forward to, we can all do with a bit of help saving. Fortunately, with a bit of careful planning, you won’t have to survive on bread and water to make your dreams a reality. There are a lot of ways you can build up the capital needed to make a major purchase without it impacting your quality of life. Read on to find out how.

Keep your savings separate

In the same way a little kid puts coins in a jar to save up for something, you need to have a clear division between spending money and saving money. Whether this means opening up a new bank account with your current provider or finding some other institution that can offer you a high interest savings account, it’s a good idea to have separate places for different kinds of money.

Save a little, save early, save often

Once you have your separate account set up, it’s important to make saving a regular part of your budget. Make it as regular as paying your phone bill or setting aside money for coffee – a little bit each week or each pay cycle. Additionally, starting before you actually have your eye on anything means that you have the luxury of only putting away a small amount of each cycle. Make the decision now to start saving and you will be able to get away with putting aside as little as S$20 every cycle, rather than hundreds at a time.

Look for alternative sources of capital

Still don’t have enough to make your dreams come true? It might be time to look outside your budget. One way to ensure that you can still enjoy the same quality of life while saving for a big purchase is to consider taking out a loan for the value of the purchase. This is especially useful for large purchases such as vehicles or renovations where the average person is unlikely to have the full value of the product on hand at any one time. Many moneylenders offer loan products that can be perfectly tailored to your precise needs, ensuring you walk away with the exact amount you need, backed by favourable terms and conditions.

Start a conversation with the loan consultants at Fast Money and discover how we could help you.