Saving for Major Purchases

Whether it’s a new car, a dream vacation, or the latest phone upgrade, big purchases take planning, especially around the holidays when spending tends to sneak up on us. Seeing a large price tag can feel intimidating, but saving doesn’t have to be overwhelming. With a few smart strategies, you can turn a big financial goal into something achievable and stress-free.

Here are a few ways to get started:

1. Set SMART Goals

When saving for a major purchase, set a goal that’s Specific, Measurable, Achievable, Relevant, and Time-based. Instead of saying “I want to save money” try “I want to save $200 a month for the next six months towards a new laptop”. This gives your goal a purpose and keeps you accountable! Make sure to track your progress along the way and adjust if needed.

2. Try the 50/20/30 Rule

A popular budgeting method is the 50/20/30 rule:

50% of your income goes toward necessities such as rent, groceries, and utilities

20% goes to your savings

30% goes toward personal or discretionary spending (the fun stuff)

If you find you are struggling to meet your savings goal, consider trimming a little from the 30% (dining out, shopping, personal purchases) and redirect that money towards your savings goal.

3. Start Small and Stay Consistent

You don’t need to save hundreds of dollars right away. Even setting aside a small amount, $10, $20, or even $50 per paycheck adds up over time. As your financial situation improves, increase your savings percentage. Consistency is what matters most. Regardless of your salary, saving is possible with the right mindset.

4. Open a Dedicated Savings Account

A separate savings account helps you stay focused, so you aren’t tempted to dip into your savings. At PFFCU we offer high-yield savings account options with no extra fees. Choose the option that works best for your needs and have your money grow safely and steadily. Everyone’s financial situation is different. The key is finding a plan that works for you.

Saving doesn’t have to be complicated. Think back to the old days we had savings in piggy banks. Now we have digital piggy banks in the form of apps and online savings tools. The method may be different, but the point is still the same: save what you can when you can. Every dollar counts. With clear goals, steady habits and the right tools, you can set yourself up for financial success and enjoy that big purchase guilt and stress free when the time comes!

Visit any one of our Branches to open a new savings account: https://www.pffcu.org/savings/accounts/