Could my techniques also help you save for a big purchase of your own?
- My family is planning to purchase an RV this year or early next year.
- RVs are very expensive so I’m prioritizing saving more money.
- I’ve taken several steps, including changing my budget and increasing my income, to try to save for it.
My family and I are really into camping vacations because they are affordable and are easy to bring a dog along. We’re tired of renting cabins, though, because there is a lot of packing and unpacking involved for a toddler, a baby, two adults, and an aging pup. So, we’ve made the decision to buy a motorhome.
Since RVs are expensive and they do not typically go up in value, unlike real estate, we will not be financing our purchase with a personal loan or an RV loan. Instead, we’re saving up to pay cash for our motorhome. These are the steps we’ve taken to make that possible.
1. We set a clear goal for how much we needed to save
The first step in our journey to save for our RV was to figure out how much money we would need to set aside. This let us determine what other sacrifices we’d need to make and steps that we would need to take to hit our target goal.
We researched RVs, went to some shows, talked to some dealers, and narrowed down what model we want and what the likely cost will be. With this information in mind, we’ve been able to make a plan to save enough to buy it by our target date of March 2023, when we want to take a special camping trip for my daughter’s first birthday.
2. We opened a dedicated RV savings account
We wanted to make sure the money we were setting aside for our RV isn’t used for any other expenses that might crop up over the course of the year, so our next step in our efforts to save up for this purchase involved opening a dedicated savings account. We researched high-yield accounts to find the one paying the most interest and opened up an account with that bank that is specifically earmarked for buying our motorhome.
3. I reworked my budget to look for areas I could cut spending
Since I have to save a …….