3 Smart Ways to Quickly Save Up for a Big Purchase

November 8, 2018 | By Mason Roberts

Everyone has different ideas when it comes to discretionary spending. Maybe you want to take a 10-day cruise, buy a vacation home, or get a motorcycle. Maybe you’re thinking of using your credit card to finance that big purchase. But before you do, consider this: according to The Motley Fool, the average American household with debt owes over $132,000 and the average household with credit card debt owes more than $16,000. Do you really want to join the ranks?

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So, if you decide not to use a credit card, what are some other options? Here are a few creative ways to save up for any large purchase:

1. Use SmartyPig To Reach Any Savings Goal

SmartyPig is a free online piggy bank with rates up to 1.12% APY. Kattien Rosario, a project manager for a tech company, uses SmartyPig and likes several of its features:

  • Create multiple goals
  • Set up automatic transfers
  • Tracks your progress
  • Tells you if you’ll make your goals on time

“The best thing is that you can create as many goals as you want and have it automatically transferred, which simplifies having to have a real savings account for every purchase,” she says.

2. Temporarily Stop Paying Other Expenses

Maybe you have a massage membership, or you take singing lessons. If you have nonessential expenses, you could stop paying for them for a short period of time. Depending on how much you want any particular large purchase, you might benefit from suspending those other accounts for a few months.

3. Buy Gift Cards for Specific Items

If you’re saving up for an Apple product, like a laptop or desktop computer, save in increments and buy Apple gift cards. One benefit of this is that it will prevent you from using that money on other impulse buys. You can find several gift card sites online at discounted prices, which means you pay less in exchange for more money.

If you use this method, you can easily find great deals for that specific item. In the Apple laptop example, you can even find deals on refurbished electronics for unused products, which of course helps you reach your savings goal even faster without spending as much as anticipated.

Using an Installment Loan to Cover a Big Purchase

Maybe you’re facing an emergency and need to come into a large sum of money immediately. Whether you have an ill loved one, a totaled car, or you're dealing with a stack of unpaid bills, an installment loan could be the right choice for you. There are several benefits to going this route:

  • Minimum requirements
  • Even those with bad credit could qualify
  • You can repay over several months
  • No collateral needed to secure these loans
  • There’s a nationwide network of licensed installment loan providers
  • The approval process is fast

What Is an Installment Loan?

To start the process, fill out an online request form. Shortly after, a trained store representative will reach out to you. Before arriving to the store to complete the approval process, you will need to bring the following items with you:

  • A bank statement from an active account in your name
  • Proof of income
  • You must be at least 18 years old
  • Your driver’s license, or a valid state-issued I.D.

From the time you arrive onsite, the process should take about 30 minutes, and you could walk away with fast cash the same day.

Things to Consider When Saving For a Large Purchase

It’s very important to put quality time into researching your options. Here are a few to take into consideration if you are thinking about getting an installment loan.

  • Pro: You could receive much-needed cash up to $2,600.
  • Con: If you take out an installment loan that is too large, you might not be able to repay it. That is why it is important to take your income and other expenses into account.
  • Pro: If you are faced with urgent money issues, getting an installment loan could lessen stress and help you avoid overdraft fees while you save up enough money to pay other debts.
  • Con: It’s important never to use an installment loan as a long-term answer to your financial problems - they should only be used in emergency situations.

How Will You Save?

No matter how much or how little you like your job, you undoubtedly like to use your money to either take a nice vacation or buy something you know you will enjoy. That is why it is so important to find smart ways to save for any large purchase you have in mind rather than go into debt to acquire it. Get started today to make your well-deserved goal happen!