Smart Strategies for Budgeting and Saving for Major Updates and Reno’s

It can be challenging yet rewarding when saving up for major purchases.  It could be a new car, a full kitchen renovation, or a trip overseas.  Whatever you define as a major purchase, budgeting, and saving takes some planning.  Here’s a guide to breaking down your budget and keeping you on track toward financial wellness.  

How Much Do You Need?

 

What are you buying?  Will there be hidden fees?  If you’re saving for post-secondary education, a vacation, or a new vehicle, there are usually some more fees outside of the original price tag, such as higher insurance, student fees, maintenance costs, etc. Factor in ongoing costs associated with the purchase and adjust your budget accordingly once you make the purchase.

Assess Your Current Financial Situation

 

Review your income, savings, and existing expenses.  Determine how much you can realistically allocate toward this purchase without compromising your financial stability.  If you’re a new grad in student debt, buying a new car might not be the wisest decision you could make.  Or if you recently closed on a new home, maybe major renovations can wait a little longer. 


 

Set A Time Limit

 

And be realistic.  If you need to save $30,000 to remodel your bathroom, it likely will not be a project that gets started next month.  Plan ahead with reachable, realistic goals. Have $5000 put away in the next eight weeks or $10,000 by the five-month mark, etc. Use your assessment of your financial situation and decide on a budgeting/savings plan that works for you. 


 

Don’t Forget About Your Other Expenses

 

It’s important to not overlook your other financial goals and responsibilities when budgeting for a major purchase.  Any debt, household expenses, childcare, emergency savings, and anything else not related to your purchase unfortunately still needs to be prioritized.  However, you can identify non-essential expenses that you can reduce or eliminate temporarily to free up more money for your savings goal.  This might include dining out less, canceling unused subscriptions, or reducing entertainment expenses.

Stay Disciplined

 

Of course, unexpected things can happen, and some large expenses might come up that are unavoidable.  But avoid dipping into your savings for other purposes.  Stay focused on your goal and remind yourself of the benefits of achieving it.  Regularly review your budget and savings progress.  Adjust as needed if your income or expenses change, or if the cost of the item you’re saving for fluctuates.

Speaking of which, is purchasing a new home a major financial goal of yours?  If so, give me a call today!  I will be more than happy to help you through the exciting home-buying process! 

If renovating or updating your existing home is something you’re considering, I can give you an idea of what it may be worth after the you’re finished.  

You can reach me at 905-683-7800.

Thanks For Reading Today’s BLOG!

Brian Kondo
Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-426-7484 direct
brian@briankondo.com
www.BrianKondo.com
www.BrianKondoTeam.com

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