Planning Major Expenses
Do you feel a major purchase looming in the near future such as major house repair, a new computer or appliances? Do not put off planning for it until the need is pressing. Take the following action plan to determine your needs, wants, and what you can afford.
- Define specific goals. For example, if you need a new computer for work, specify what kind of work you would need it for.
- Set your criteria. Determine the absolute musts to meet the goals you defined in Step 1. Do you need a laptop so you can work on the go, or would a desktop suffice?
- Take time to shop around and compare options. Eliminate options that do not meet your criteria. Pick the two to three best options in terms of quality and cost.
- Start saving for the purchase as early as possible. When you have saved up enough for the full payment or a down payment, pick the best option.
- Evaluate your purchase. Did you stay within the budget? Were there any unexpected side expenses you did not plan for?
To know more about planning your purchases, click here.