If you want a new mobile phone then you may worry about how you will pay for it. Some people get a contract with the phone included, but this is not suitable for everyone. If you want one then you may wonder whether you will have to get a loan to pay for it as they can be expensive. Alternatively, you might think that you will have to go for a cheaper model that you do not really like. However, it will be possible to save up for what you want. This will mean that you will not have to concern yourself with getting a loan or thinking that you will have to go without the phone. However, not all of us are that good at saving or perhaps may not even know how. It is actually a lot easier than you might think.
- Find out how much you need – firstly you
need to know how much money you will need to pay for the phone. It is good to
compare the price across different retailers both online and offline so that
you can see who will give you the best price. It is likely to vary and if it is
an older model you may even be able to find it second hand or reconditioned
which could be cheaper. Do bear in mind that the price may vary though, but it
is most likely to go down rather than up unless it becomes collectable. It is
wise not to assume the price will go down before you buy as if it does, you
will just have saved up extra money. You can always closely monitor the price
just in case.
- Set yourself a goal – it is really
important to write down your goal. Think about what you want, i.e. the phone
and also how much it will cost to get it. Also consider when you want it. Get
this information down and then stick it somewhere prominent. This will keep it
in your head so that you know what you are aiming for. It should help to
motivate you to find ways of saving up money and not to spend more than
necessary. If you put a date on the goal this will give you even more to aim
for and should help you to get the phone quicker.
- Decide where to cut back your spending–
in order to save up, it is likely that you will need to reduce the amount of
money that you are spending. Most of us spend more money than we need to and so
there will be areas where we can cut back. This could be on all sorts of things
and it will be up to you to analyse the money that you spend so that you can
work out where you will be able to cut down. It may just be a case of thinking
about everything that you buy and deciding whether it is something that you
need or not. If you avoid buying things that you do not need then this could
enable you to save up quickly, however, it might feel like you are depriving
yourself. It is worth noting that we cannot buy everything that we want and
this exercise is about prioritising your spending. If you want to be able to
afford a phone then you will need to give up something else. Once you have the
phone then you could buy those other things if you have the money, it will just
have to be a matter of waiting for them.
The amount of time that it takes to save up and the amount of things that you will have to cut down on will depend on how much your phone is and how much you earn. You might feel that you would like to try to earn some more money, perhaps by selling things you no longer need or working some more hours so that you can get it more quickly. If you tend to spend all of the money you earn on necessities then you will need to do this anyway in order to afford the loan. There are lots of things that you could try such as doing some online work, some temp work, and evening job or even a Saturday job. There are options available and it is just up to you to pick what will work best for you. It depends on what skills you have, what you would like to do and what time you have. You may even find something that works so well that you will be able to continue doing it and benefit form having that extra money in the long term. It can even be a lot of fun and very satisfying knowing that you have access to this extra money if you need it.
Buying a new car can be an expensive business which is why
many people will get a loan in order to pay for it. However, you may prefer to
find a way to afford the car without a loan. Perhaps because you have a poor
credit record and so cannot get a loan or because you would rather pay it off
all in one go. There are things that you can do that will help you to save up.
- Designate an account for the savings – it
is wise to start by setting up a savings account just for the purposes of
putting the money for the car in. This could be an account you already have
that you decide to just use for this purpose or one that you decide to set up.
Having it separate means that you will know exactly what it is for and will be
able to put money into it, knowing that it will not be spend on other things by
- Pay into it regularly – It can be good to
get into the habit of paying some money into the account every time you get
paid. The amount that you put in will depend what you can afford. If you
normally have some money left over at the end of the month then do at least
this amount. It needs to be an amount that will be significant so you can
really start to save up but that will leave you enough money so that you can
afford everything you need to buy. You might to do some calculations to work
out how much or you may have to change it a few times before you get it right.
Obviously, the more you put into the account, the quicker you will save up
enough to buy the car.
- Empty out current account – at the end of
the month it can be wise to take any money left over in your current account
and put it in the savings account. Many people do this anyway. This is not
enough though and you should do the above step as well. This is because we can
often spend what is left as we will see that there is some money there and know
that we can afford a few things that we want. Therefore, it is wise to make
sure you save first, even though there is no harm in doing this step as well if
there does happen to be some money available there.
- Spend less on other things – it can be a
good idea to be careful about what you are spending money on as well. If you
are saving up then you will need to make sure that you are not spending too
much money elsewhere. It is not always easy to cut down as it can feel like you
are depriving yourself. However, it is a good idea to think about whether you
really need all of the things that you are buying so that you can cut back on
things that are not so important to you. Also, you can compare prices to make
sure that you are not paying more than necessary for items that you are buying.
It is wise to get good value for money, but if you compare retailers you may
find that they have identical items at lower prices.
- Earn more – you might find it easier to
earn more money rather than trying to find lower priced items or to cut down on
what you are buying. This will depend on whether you have the time to be able
to fit in more work. There are lots of ways that you can earn and so you may
not just have to think about whether you have the time or opportunity. For
example, you might be able to look online and find some work to do from home or
you could sell some things that you own or things that you make to earn some
extra. It can be fun thinking of different ways that you can earn or make
money, particularly if they are a bit different to normal.
You can try one or all of these things in order to make
saving up for a car easier. The amount of work that you will need to put in
will depend on how much money you need to save up, which will depend on how
much the car is that you want to buy. It is good to think through your options
and come up with a plan that will allow you to get the right amount of money to
buy your car without having to make such severe lifestyle changes that you will
be unhappy. You could always try a few changes and get used to those and then
slowly try more and more until you find some that you really like or until you
build up to quite a lot so that you start to make some significant savings.