PLANNING FOR BIG FUTURE EXPENSES Everybody knows that life is full of unexpected twists and turns. So, when it comes to the things in life that you can predict, you should always prepare as best you can. When your child is growing up and you hope to send them to university, you have to plan ahead. Or when you are expecting a baby and you know that you are going to have to build on a second bedroom. The same goes for when you realise that your vehicle is getting old and it is going to need repairs or replacement in the future. It is important to save for these events as it is unlikely that one month’s salary will be enough to cover big life events such as these. Here are a few tips to help you save up for life’s big expenses. Create a realistic savings goal When you have an idea of what you need to save money for, create a realistic goal of how much you can save every month and for how long. Having a definite goal in mind will stop you from spending unnecessarily and will encourage you to put aside money every month. Save before you spend Even without a specific need in mind set aside a portion of your income every month and deposit it into a savings account as soon as you receive it. If you leave it in your current account the chances are that you will end up spending some or all of it on other expenses. If, however, the money is out of your transactional account, you will be less tempted to spend it. Spend less on the small things Keep your savings goals in mind when you go shopping – whether it is at the grocery store or the school supply store. Make a conscious effort to choose non-branded products if they cost a little bit less than the big brands. The small difference may not seem like a large sum until you add it all up. Bulk buying can also be a good idea, make sure the price is right. Budget for little luxuries People often think that budgeting means giving up on luxuries like entertainment, but it does not have to. If you budget for a night out or certain luxury items you will be able to enjoy them without feeling guilty. Of course, as much as you plan for the future, there will always be those unexpected expenses that take you by surprise. If that time ever comes, you can always apply for a DirectAxis loan. Repayments are over a period of up to 6 years, and fixed so you can budget ahead with ease. Leave a Reply Cancel ReplyYou must be logged in to post a comment.