There’s nothing quite as exciting as planning for a big purchase. Whether it’s buying a house, preparing for a new addition to the family, getting married, or going on vacation, there are countless major purchases people will save for throughout their lives. It can feel daunting at first, but big purchases motivate you to make a savings plan of action. Here are our tips, tricks, and resources on how to budget for those big moments. 

Big Purchases Require a Lot More Research

If you’ve never had to save for a significant purchase before, starting with the right expectations is important. 

Big purchases often come with strings attached. Extra charges like taxes, exchange rates for trips outside the country, or even maintenance fees for physical purchases like cars and houses can add up over time. 

The best way to set yourself and your budget up for success? Get an idea of the real cost that includes all the “hidden” fees. 

Tools like this vacation calculator, this wedding budget calculator, and even this mortgage resource can help you get a jump start on identifying all the different costs, including hidden costs that are often overlooked (for example, did you know the time of year you get married can have a huge effect on the cost of venues, photography, and even catering?). 

A Little Sacrifice May be Necessary to Budget for Bigger Purchases 

No matter how you slice it, most Americans live paycheck-to-paycheck (even those with high salaries), which means saving up for big purchases will require you to make some sacrifices from your normal spending habits. 

Luckily, there are many simple budget recommendations to help you reign in extra spending and prioritize big savings goals. One great example is the 50/30/20 rule. 

The 50/30/20 rule is a simple, practical rule of thumb for individuals who struggle to budget. It offers guidelines for enjoying your income while putting savings on autopilot. 

Simply put, the rule suggests you should be spending 50 percent of your gross income (income after taxes) on essentials and 30 percent on “wants,” leaving 20 percent to go towards savings. 

But what if you’re already budgeting in those percentages and don’t think you’ll have enough saved in time? Consider cutting down on the “wants” category (like your daily coffee run). Minor cuts here and there can make a difference to your savings long-term. 

Discover How to Budget For Your Finances With a DEXSTA Expert

Overall, it’s important to remember it takes time to save for major purchases! But meeting with a financial expert, like those at DEXSTA, can help you get a leg up in your plan. In addition, they can help you decide the right savings account (some help you earn extra interest!) and how to budget for your unique situation. Reach out to a DEXSTA expert and take the first step towards achieving your savings goal today!