September 20, 2019

16:00 PM

Why Patience is a Virtue when it comes to Big Purchases

Budgeting & SavingFinancial well-being

Who wouldn’t love to own the latest premium gadgets or take a luxury trip across the world? The answer to that question is “Everyone”. Sure, we love the tech and the luxury - but the real question lies in whether we can truly afford it. After all, to truly afford something is to buy it without borrowing and instead with your planned savings accumulated over a period of time.

In today’s age of technology and social media, we are forever caught in a struggle to prove our worth through our material possessions and gateway adventures. As a result, we end up cutting deeper into our pockets than we can completely afford. Often we are manipulated by the EMI schemes offered by credit card companies and banking institutions. Hidden costs for these are often left undisclosed by the lending agency and so, we end up paying more than we actually signed up for.

Planning is always key when it comes to big investments. A thoroughly prepared and flawlessly executed financial plan is what saves us from falling into the dark hole of monetary debt. Planning and saving accurately ensures a risk-free future and teach us to wait for good things to come to us.

Here are some tried and tested steps to save effectively and make big purchases without burning a hole in your pocket.

Plan your Savings

First and foremost, create a savings plan. Calculate your daily expenses and other scheduled payments and deduct this from your earnings. Once this is done, decide on how much you can actually take out from your earnings and keep aside as savings for your next big buy. Having a well prepared, practical plan always helps in the long run.

Accumulate Wealth

Saving does require a lot of patience! You have to come to terms with the fact that wealth doesn’t accumulate overnight, it is a gradual process. The small amounts you save may not be enough to buy that new Louis Vuitton bag this summer, but by next summer you will probably have enough to afford the same bag and a pair of gorgeous shoes! The euphoria you feel when you hold it in your hand without a credit card swipe makes it worth the wait.

Saving Goals and Lifestyle Changes

It’s also important to set certain saving goals for yourself as milestones. Without a benchmark, it is difficult to push yourself to achieve the desired results. When meeting your goals seems excessively hard, a few lifestyle changes can bring in balance. Opt for public transports instead of taking a cab and ditch that fancy bottle of wine for some beer a few times in a row - you’ll be amazed at how much you save!

Space Out the Big Purchases

Hoping to make multiple big purchases around the same time is probably a little more ambitious than you need to be. A healthy time gap between expensive buys will bring stability to your financial life. Otherwise, your savings goals may suffer which might just end up affecting your money assets in the long run.

So we hoped these 4 smart tips help you be with making wiser purchases and inspire you to start actively planning towards them. Remember, take it step by step and eventually, you will make those dream purchases with your own savings - and trust us, that feeling will be unlike any other.

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