Saving for Major Purchases
A penny saved is a penny earned!Benjamin Franklin
What is "saving for major purchases?" It is a very traditional way of setting a personal goal, striving to achieve it, and celebrating its success when it is attained! It is also a way to avoid debt, save money on interest and other finance charges, and reach a goal without having to compromise on quality, price or any other influencer. There is a certain sense of achievement and even power when you "have the money."
What are the benefits of saving for a major purchase? There are as many as you can think of in your personal situation, but many of our customers share these common ideas on why saving is an excellent alternative:
Tip #1: Saving for a specific goal instills the discipline of saving generally.
Like anything else in life, habits are hard to break. Once you begin a savings plan with a specific goal, you will tend to continue saving even after the goal is reached.
Tip #2: It provides an emergency fund if needed.
In the event an emergency would arise, your major purchase could be postponed. We all need a "rainy day" fund, especially in today's economic environment.
Tip #3: It encourages wise decision-making on purchases.
People tend to "think" more about how much they are spending and on what if they are using "real money" as opposed to a credit card or a loan proceeds check.
So what does it take to get started? Many people believe that having a monthly budget is a great place to start and many respected financial advisors recommend "paying yourself first" as part of that budget. Once the budget is established, which includes your savings plan, the next needed ingredient is plain old discipline. Consider it a “bill” and pay it regularly! Then, to measure how well you're doing, consider using Washington Financial's new FinanceWorks budgeting tool! You will then be in the best possible position to be successful in hitting your savings goal!
Did you know?
The Washington County Courthouse was listed on the National Register of Historic Places in 1974.
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