One common issue that we all deal with at some point in our 20s is making a huge purchase. Everyone reading this will eventually have to deal with saving up for a trip, car, or a new home. Huge purchases are not rare. What’s rare is handling these big purchases well. I don’t want you to be clueless about your next big ticket item purchase.
How can you make huge purchases like a stud?
Be realistic about the full cost.
$999 is not a couple of hundred bucks. It’s one thousand dollars.
You have to be realistic about the full cost before you start to plan for any major expense. Don’t lie to yourself. It’s easier to save when you calculate the full price, including: taxes, insurance, and complementary costs.
Set an automated savings plan.
Now you need to start saving my friend! This is the fun part. You can steal, borrow, or beg for money to save up for this purchase. You can also work harder.
When I have a big purchase coming up I often pick up more shifts at work and find new ways to increase my income.
The next step is to set an automated savings plan with your bank account. Create a new sub-account, withdraw a set amount every week or so, and watch your savings build.
I love this part.
This is where you realize that you can have anything that you want, but not everything. You can have the big purchase. You can go to Cancun this summer. You just need to set priorities.
How do you set priorities? Elimiante crap while saving for a specific goal.
This is the stuff I cut back on when saving for a huge purchase:
- Random nights out.
- Drinking for no reason.
- Eating out (hello cans of tuna).
- Buying stupid stuff.
What will you cut out?
Negotiate like a champ.
If you don’t ask the answer is always no. This is why negotiating on the price is key.
I always ask for discounts. I always try to get a better rate. My friends get mad at me because they say it’s embarrassing. Then they save money and thank for me.
When planning a trip I use online travel sites against each other. I find the one with the “price beat guarantee” and I send them the lowest price. Even if they beat it by $10, that’s still $10 in my pocket. That’s an extra couple of beers!
When making any huge purchase, the biggest savings will come from negotiating like a champ. Don’t be a coward. Ask for a discount.
I want you to save as much money as possible on future major expenses. This includes that flat screen tv you plan on buying for the EuroCup and that suit you want to grab for your buddies wedding this summer.