Budgeting for that once in a life-time purchase can be challenging. After all, when you are keen to get your hands on something, you want it now. Unfortunately, when it comes your once in a life-time purchase, this can’t be done. Regardless of whether your dream purchase is a car, property, five-star holiday or something completely different, you have no choice but to budget. There are numerous ways you can successfully budget for your once in a life-time purchase, enabling you to get your hands on your dream item quicker. Find out exactly how below.
Create A Master Plan
Budgeting for that once in a life-time purchase can feel like a long, tedious process but when it comes to spending on things that you care about, one of the most effective ways to budget is to create a masterplan.
Creating a masterplan doesn’t necessarily mean opening an excel document to record all your savings, either. A fun way of budgeting for that once in a life-time purchase is to take a whiteboard or notebook and note down what your goal is. Then, you can identify a deadline for purchasing your desired item, a final budget concluding the total cost and a breakdown of how much you are willing to save each week or month if you prefer.
Create A Realistic Budget
When it comes to budgeting for that once in a life-time purchase, whether it is a property, car or trip to the Maldives, creating a realistic budget can help to keep you motivated. If you plan to go abroad, for example, you might aim to create a detailed budget that looks a little bit like this:
- Decide if you want first class tickets
- If you want to spend money on a luxury hotel, opt for budget flight tickets
- Search for the best deals at the most exclusive resorts
- Pay for your hotel ahead of time
- Understand that food can be expensive
If you love to splash the cash abroad, consider elements that can be luxury and those that can be budget friendly. If you choose to stay in a luxury hotel, you can save money on shopping, food and various activities. However, if you would prefer to go on multiple excursions, such as reef snorkelling and historic expeditions, then consider staying in a budget friendly hotel or hostel instead.
Create A Saving Account
What better way to budget for that once in a life-time purchase than to create a savings account? There are numerous benefits of using an online savings account, including that you are able to set up automatic deposits to steadily build your fund. By automating your savings, you are essentially eliminating the effort of saving, and also significantly reducing your temptation to spend your hard-earned money on, quite simply, things you don’t need. Soon enough, you’ll be at the counter or checking out online!
Create A Maintenance Fund
It’s all well and good budgeting for your once in a life-time purchase, but have you considered how much it will cost to maintain your dream once you have proudly acquired your purchase? This is especially true for those that want to buy their dream car. Before you make your once in a life-time purchase, consider exactly how much it will cost you to maintain and if you will be able to afford the cost of owning a luxury car in a few years’ time.
If the answer is no, don’t be disheartened! Instead, save more money than you had initially planned to help ensure that you can fully enjoy your once in a life-time purchase, and not end up regretting your decision.
Following some of these steps in the correct order will make it significantly easier for you to budget, regardless of what your once in a life-time purchase consists of. While your purchase might seem like a distant dream by taking these tips into consideration, you will be ready to buy your once in a lifetime purchase in no time at all!
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Generic advice is not a service regulated by the Financial Conduct Authority.