Whether the washing machine has finally died or you’re eyeing up a new car, the time is going to come in everyone’s life when you’re going to have to drop a lot of money at once. But how to do it? No matter what it is – whitegoods, a holiday, even something as humdrum as automotive repairs – everyone needs to have a plan in place for how they’re going to manage big ticket purchases.
Fortunately, it’s easy to plan for the future when you take the right approach. Fast Money has rounded up a few tips to help you make the smart financial decisions this year. Read on to find out more!
Put away that credit card
The first thing you should probably do is discount the idea of putting it on your credit card. All too quickly this can become the easy way out, which is a slippery slope that can lead to some major financial trouble for you and your family. Not only do you risk maxing out your credit card – affecting your ability to use it other on other purchases – you can also create problems for yourself down the line, dramatically increasing the amount of interest you have to pay and the size of your minimum repayment. The smart decision is always to turn down using your credit card.
Plan your savings around it
Think carefully, are there any lifestyle changes you could enact or smart decisions you could make to free up some more savings? Having a ready cushion of money available on hand can alleviate much of the stress that comes with making a big ticket purchase. This can involve some hard decisions, such as foregoing an overseas holiday or cutting costs in other parts of your life, but there will most definitely come a time when you will thank yourself for your prudence.
Get smart, targeted help when you need it
If your lifestyle simply can’t support that level of savings, then there are still alternatives. One of the most intelligent ways to support your saving efforts with additional capital is taking out a personal loan. This offers the same help a credit card does with the added bonus that it’s provided in a fixed lump sum. That means you can access it’s entire value at once without the risk of going overboard and incurring additional debt.
If you’re looking for the help you need to make those getting those big ticket items simple and easy, speak to the loan consultants at Fast Money to learn more.