Budgeting Tips from Clark County Credit Union to Help You Plan for Large Expenses
When it comes to planning a budget, many people immediately envision a savings account that will help them purchase a car, put a down payment on a home or afford a wedding. Planning and budgeting are wise steps to take for any large expenses you may face. This includes home repairs, annual taxes, emergency nest eggs, and even something as simple as upgrading to the latest television or computer. Our Las Vegas credit union will help you establish a budgeting strategy that suits your needs with these tips.
How to Effectively Budget for Large Expenses
Understand Anytime Is a Good Time to Start Budgeting
Don’t assume you have to wait until an expense is right around the corner to begin crafting a manageable budget. By learning how to budget and practicing various savings strategies, budgeting will soon become second-nature.
Identify All Major Expenses, and Keep Track of Them
If you know you have big expenses coming up, write them down or input them in a spreadsheet. For instance, look over your tax history and identify how much you usually owe at the end of the year. Everything from grocery purchases to fuel costs to holiday gifts can be identified and factored into your budget.
Set a Goal, and Calculate How Much You’ll Need to Save Regularly
Let’s pretend that you want to purchase a $500 gaming system for your child’s birthday in six months. That equates to roughly $85 per month you need to save. With a savings goal set, you know the minimum you must save – but you can always save more.
Find Ways to Cut Costs
Using the example above, let’s also assume you purchase a $3 cup of coffee on your way to work each morning. By cutting that cost, you’ll have saved $60 in only 4 weeks. We suggest looking over your monthly expenses and finding additional ways to save money. For instance, you can eat out fewer times a month, avoid impulse purchases and utilize less electricity to save extra money every day.
Set Up Dedicated Savings Accounts
One of the best ways to avoid spending money is to place it in a separate account from your checking. Open a savings account to ensure any money you save is solely restricted to only those large purchases. Some Las Vegas credit union accounts can even be set up to pull a small amount from your checking account and deposit it into your savings account every week.
Use High-rate Savings Account for Emergency Expenses
While saving for a car is a significant undertaking, you should also try to save for unexpected expenses like home repairs or medical bills. Using a high-rate savings account can help you boost your savings faster.
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