Very few of us have money at the ready for an emergency, let alone large purchases like a house, international trips, or jewelery. It takes scrupulous planning and strategizing in advance so you don’t squander your hard-earned money or derail your budget. Here are some ways to set yourself up for success:

It’s much harder to start saving up for something that feels intangible. Start by clearly identifying the item you want to buy. Let’s say you want to buy the latest smartphone from your favorite tech company. Make a plan for how much you need to save for it, how long it will take until it is launched, and set a budget for other expenses. Knowing the exact price of the smartphone will help you strategize smarter.

2. Set a Timeline
Have a rough end-date to your big purchase journey. This will also help determine your budget and savings strategy. With the smartphone, you will usually know how much time you have before it is launched. You can give yourself a couple of extra months from the launch date to ease the savings process.

Thorough research is crucial before a big purchase. Compare other phone brands, different deals and offers, search for festive sales, if any. Research will help you find the right product that best suits your budget and timeline. You might just find a different phone model that you like more.

4. Create a Dedicated Savings Account

Consider opening a separate savings account for your big-ticket item. Having a new savings account solely dedicated for this purchase will solidify your intent and also prevent you from dipping into your regular funds or savings.

5. Make Use of Bank Offers

Oftentimes, brands as well as retail outlets, both online and offline, have tie-ups with banks or certain credit cards. The offer can be an instant discount or cashback later. Find out if your dream smartphone has any such deals that you can leverage. You can also check out South Indian Bank’s debit cards, which offer extensive reward points through the SIB Rewardz programme.

6. Earmark Windfall Income

Any additional unexpected income could be directed towards savings. Receiving an end of year bonus? How about a tax refund? And don’t forget the annual salary increase. Since these sources of earnings aren’t a part of your established budget, you won’t miss the additional income by moving a portion of it into savings. Plus, this will help reach your goal quicker.

7. Stay Committed But Flexible
Saving for big ticket items like a new smartphone requires dedication and adaptability. Remember, persistence pays off. Even if it seems difficult to reach your goal within the set timeline, don’t give up. Think of the reward at the end of the journey. However, it’s important to be flexible. If circumstances require you to tweak your timeline, or if the price of the smartphone is more than you anticipated, or if you need to pivot on your savings strategy, being open to adapt will make it all less stressful.

Saving for large purchases is a long journey, but definitely one worth embarking on. It’s all about staying on track and making steady but regular progress towards your dream.

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Disclaimer: The article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of The South Indian Bank Ltd. or its employees. The South Indian Bank Ltd and/or the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial/non-financial decisions based on the contents and information’s in the blog article. Please consult your financial advisor or the respective field expert before making any decisions.