In this strategy I will show you the way I save me own money when I want to buy something big. I’ll teach you to save money by seeing the product in your savings and not the money because as we all know we want to spend money, so if we see it as a product we won’t be so inclined to spend it.
Having a goal.
I believe the most important part of saving your money is to have an actual goal, not I wanna save this much. Now let’s choose what we want to save for, I’m gonna go with a computer for this as an example. Now we need to make it more realistic and actually do some window shopping for one (or in this case surf the internet for one).
Knowing your goal.
Now that we have an idea of what we want we need to know more about it like where are we gonna purchase it. You can look up several different sites for this like Amazon.com but I’m gonna stick to HP.com as they have served me well in the past and you can customize your purchase with different features.
Now once you get the basic idea of what you want you now see if you can customize it. Now I’m looking at a portable laptop computer with a touch screen and now I’m gonna see what I can customize it with.
The first thing it’s asking me is if I want to upgrade to the professional version which I don’t need so I’m gonna decline that. Next it giving me the option of extending the warranty but I’m gonna decline that as well since it already comes with a 2 year warranty. Now it’s asking If I want to have a faster processor and graphics which I’m gonna accept for 2 reasons, one it would be nice to have a faster computer, and two the price of the computer could actually change or I may chose a better model when the time comes to get the computer (this is because new models come out all the time so we want to save high and these small additions will help get us a better goal).
Next is upgrading the system memory. Now this one is a bit expensive so let’s choose one that’s a bit better than the one that comes with the product but not the most powerful one because that would be over kill. Now for the hard drive, since this is more of a work computer and not gonna be for everything we don’t need to upgrade this one.
Next is the Microsoft Office which I’m gonna decline because I’ve been using the free open office programs instead. Now for anti virus programs which I say is a necessity so I’m gonna upgrade that to the best one. Now for an extra battery to be added would be nice. Next a power adapter, I’m not really sure which one of the 3 that were listed to get so i’m just gonna go with the middle one. Now I choose a carrying case and purchase an additional pen.
After everything is done and you pick out your accessories you now look at how much you’ll need. I got a total of $1,464.88 so I’m just gonna round that up to $1,500.00 dollars which is a lot more than I thought I would need (this can happen a lot in purchasing something big).
Creating a plan.
So now we have to figure out how much we can put aside for this each month. So we take the amount we make each month and then minus that by how much are bills cost to get the amount we are free to use. Now I like cutting that number in half because there are other things I’d like to buy as well. So now we have the amount we have to save.
Create a reminder.
My computer has a notepad like side bar where I put how much free money I have and I always round low. When saving for something I would have two amounts listed, one that tells how much free money I have and one that tells how much I have saved for the big purchase, this saved amount is usually unseen unlike the amount I have for fun so two keep them separate. This technique serves as a good reminder.
That’s all there is to it.
Yeah That really is all there is to it. So give it a try.