Everyone has a list of dreams and goals they want to accomplish before a certain age, but nothing in this world is free. Almost any big dream will cost money, such as going to college, buying a house or car, traveling to exotic locations or starting a family. The best way to achieve your dreams is to start saving for them right now. But how do you plan on saving a large sum of money without having to wait 10 years for the final product? Here are a few ways you can start saving money right now for those big expenses.
1. Just paid off a car or student loan? Keep making the payment, but instead of making the payment to the bank, make it to your earmarked savings account. A $300/month payment that is put into a savings account will be five figures in less than three years. This isn’t a bad strategy because you’ve been making the payment anyway, so you won’t have to adjust your budget if it continues to leave your checking account each month. Plus, if you don’t continue to put that money away you may be start spending it on things you don’t actually need.
2. Maintain the item. Make sure to have all the major appliances in your home checked once a year for any major repairs. The same goes for your own health maintenance; your teeth, heart, eyes, ect. all need to be well taken care of. Get yourself looked at on a regular basis to catch any problematic issues. Everything has a life expectancy; your job is to see that the item makes it that long or longer.
3. Try to find replacement cost. What would a comparable unit/car/tooth cost you today? This will help you plan and prepare for the big ticket items.
4. Ask an expert about how long an item has left. The dentist will be able to tell you about how long those fillings or crowns will last. Do your research online, see how long your brand or product has lasted in the past so you can plan for saving for the expense if it must be replaces in the future. When it comes to repairs or general wear and tear, consumers are each other’s best resource.
5. Calculate a per-month amount of savings based on life expectancy. Now that you know about how long you have, and about how much it will cost for the expense, take that replacement cost and divide it by twelve times the number of years of life left in it. This will be approximately what you’ll need to save each month to replace the item when it’s expected to need it.
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