Making A Big Purchase The Smart Way

By Jamie Hill - 16 January 2020

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Life has its way of complicating things, and it does sometimes get overwhelming. If there is one thing that could really remedy the stresses and pains of everyday life, it has got to be shopping. You can’t really explain it, but there is something therapeutic about going to a mall on a weekend or after a long day at work and buying things. It feels good, and the excitement of that new purchase never grows old and it always has its charm. Still, it can be rather stressful if you are going to make a big purchase –– buying a pair of shoes isn’t really the same as buying a new phone or laptop. This is why you need to be smart about how you make such decisions; here’s how you can do that.

Start saving

Yes, the smart way to go about a big purchase is to start saving before you even make it. Whether it is a car or a house that you want to buy, you need to be saving up first so you could get the things that you want without risking going into debt. You won’t necessarily save up the entire amount needed on time, but you will at least have saved a bulk of the money, which will make your life a lot easier down the line. Try to find a way to deposit a steady amount out of your salary each month; you’d be surprised how much that money could help you when you need to make a large purchase. 

Plan ahead

Making a large purchase is like starting a business in a way –– you have to plan ahead if you want it to work. If you are getting married, for instance, then you need to start planning early on so you can make informed decisions based on your savings and planning. This is one of the most important tips on how to save when you're making big purchases because this is how you know what budget you should have for the wedding and you will be able to make the right choices that could save you a lot of money. If there is a certain band in mind, for instance, that you really want to have at the wedding, you will start saving particularly to get those guys, since you know in advance that you want them there. You might even have to take a personal loan for such expenses, but the important thing is knowing it way ahead of time. 

 

Consider buying used/refurbished 

We all enjoy a shiny new purchase, and it is quite exciting, but that always costs you, and you might not need to get a brand new item. When you get used or refurbished models, you’d be saving a lot of money on your new purchases. The difference between the latest iPhone model and a refurbished one is pretty hefty. The same goes for used cars, and so on. You could even go for older models; take TVs, for instance, where newer models have pretty much the same specs as the older ones, but they cost more. So, why not go for a 2018 model rather than a 2020 one? It is small details like these that make a difference in how successful your big purchases are going to be and whether or not they’d put you in debt. 

Prioritize 

Let’s agree that there are a million things out there that you could buy, and you probably want to. Technologies are evolving at a rapid pace and fashion is going new places, so there are plenty of temptations around you to go max out your credit card. Unfortunately, doing so would plunge you into debt, and you won’t be making any purchases soon enough –– big or small. This is why it is very important that you prioritize when it comes to making bigger purchases. Do you really need the new iPhone right now? Or would it be better to replace your old, barely functional laptop? 

Look for coupons, sale, and promotions 

This is another very important tactic in being smart about big purchases. There are certain days throughout the year where there is a huge sale, like the Black Friday or Cyber Monday, and retailers offer huge promotions then and on other days. It is wise to delay your big purchases to such events as it could save you a lot of money. Being smart about big purchases isn’t easy, but it is crucial nonetheless. The last thing you want is to have large credit card debt because you were impulsive with your shopping. So, try to practice some self-restraint, and you could buy most things you want without suffering financial complications.

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