Saving For Small Purchases
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We've said many times before that a savings account is key to having strong personal finances. Saving money for an emergency helps protect you from the unexpected, like a tire blowout or an emergency dental visit. You also know you should plan and save for big purchases: homes, cars and even vacations. But the smartest people practice another kind of saving: saving for small, predictable purchases. These kinds of purchases cost more than we typically have in ready money; we can see them coming well in advance, and we tend to put them on our credit cards. While the amounts are usually small, paying off credit cards usually ends up on the back burner to other financial obligations, and these purchases hang around racking up debt far longer than they should. The good news is that since the amount of money is small, the cure is painless. Read on as we look at a few small purchases that you should be planning ahead for.Suits
If you wear suits to work every day, they're going to rack up wear and tear much quicker than a guy who only wears them occasionally. All clothing wears out, and suits are no exception. Based on how often you wear suits, you should have an idea of when it's time to replace each of them. When you have this in mind, it’s time to start planning and saving for them. The same rule applies to casual clothing. You may think nobody will notice when your clothes are wearing out, but people do. And while a mustard stain on a shirt makes you look sloppy, a wrinkled, threadbare suit makes you look like a grifter.TIP: We're not saying you need to wear Savile Row to work, but make sure you have enough money set aside that you can afford a nice suit. Don't get caught buying the absolute cheapest suit just because it's all you can afford. You only need a few suits, so make sure they’re of good quality.
Shoes
This is the logical next step after suits, so we won't say too much about it. Planning and saving for a shoe purchase will help you if you're the type to walk past a shoe store, remember it's time for a new pair and just buy whatever you can afford at the time. Instead, you should stock a little money in advance and buy a sensible pair that fits your needs.TIP: A good pair of shoes makes a huge difference in how you look and how you feel. Poorly crafted shoes will make your feet ache, plus the worksmanship won't last as long, so they're not much of a deal. The product may be cheaper, but you’ll have to buy more often.
Golf clubs/hobby gear
Sporting goods and musical instruments are a notoriously slippery slope for credit card debt. The purchases themselves are minor, but once you've got your plastic out, it's easy to grab just “one more thing” you've had your eye on, and before you know it, you've got a trunk full of objects you didn't plan on buying and a new helping of credit card debt. Read up on the purchase, decide which model is right for you and save. Most of us tend to decide which model we want and then buy it. The decision is often the hardest part, so when our minds are made up, we try to move quickly. Don't let that behavior land you in debt. You have to plan ahead.Read on for more small purchases to save for... Next Page >>
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