Simple ways to save up for a big purchase

On this episode of Getting Rich, sponsored by Acura, go on a financial journey with Carmen Perez as she outlines the pro tips and tricks to own your bank account, from credit scores to crushing student loan debt.

Whether it’s a stylish new pair of shoes or a brand new house, making big purchases is so exciting! If you’re considering a big purchase but are unsure how to save for it, financial expert Carmen Perez (@makerealcents) of Make Real Cents is here to help. On this episode of Getting Rich, Carmen shares her tried and true tips for managing how to save for a big purchase, then sits down with voiceover actor, emcee, and model Devin Finley to advise him on how to save for his dream purchase: a motorcycle. 

Carmen’s first piece of advice when it comes to saving for a big purchase is to consider whether the purchase is something you truly need. “Make sure it’s realistic,” Carmen advises. “And if you can live without it, it might not be worth the financial commitment.”

Then, ask yourself how long it would take to pay off the purchase. “Find out if it’s in your budget by asking yourself, ‘Could I pay this off in a month?’” Carmen explains. “And if the answer is no, you might want to rethink it.”

Finally, for purchases that require long-term savings, Carmen recommends opening a new banking account dedicated exclusively to that purchase. “Consider opening a new banking account outside of your checking, savings, and emergency fund,” Carmen says. “And if you’re diligent about tucking away money every single month or every single paycheck, you’ll be able to watch it grow.”

Next, Carmen sits down with Devin Finley, a professional jack-of-all-trades who does everything from modeling to voiceover work, who wants to save for a motorcycle. Devin asks Carmen for her advice on how he can save $3,000 for a used motorcycle over the course of the next year. 

First, Carmen advises Devin to consider other expenses that might arise when he buys the motorcycle. “Once you get this motorcycle, you’re gonna need insurance, a nice helmet possibly. So all these things start adding up and that $3,000 starts looking like something completely different,” she explains. “When you get home today, write out what that can look like.”

Once Devin has his real budget locked down, the next step, according to Carmen, is to open a high-yield savings account. “It’s really important to segregate those funds from your normal checking [account],” she explains. “So I would highly encourage you, whether it’s with your current bank or another bank, to open a high-yield savings account.”

When it comes to saving, the most important thing, according to Carmen, is to be consistent. “Just make sure that all your bills are getting taken care of, but then prioritize saving for that motorcycle,” she advises. “So being intentional about that, whether that be every single month you’re putting aside the hundred and being consistent about it.”

Carmen concludes the episode with 3 final pieces of advice for saving for a big purchase. First, if possible, avoid opening new lines of credit. Treat borrowing money as an option that’s solely for emergencies. Second, research extra bonus features that might come with your purchase and budget for them. And finally, don’t be afraid to hit pause and spend some of those savings on more pressing purchases. 

“Life is unpredictable, and it’s okay if you have to use your savings on repairing a roof instead of buying a new boat,” Carmen advises. “Just regroup and start over. Those big purchases will still be there tomorrow, trust me.”

Carmen is not a registered investment advisor. The above information is not investment advice and is intended for educational purposes only. Please consult with a financial professional to assess what investments are suitable for you based on your financial objectives, needs, and risk tolerance.

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