Once in a lifetime purchase

How to Budget for Once in a Lifetime Purchase

Posted on 13th March 2017

When it comes to spending on things that we care about, no one does it like us. Once in a lifetime purchase is a thing that many of us think about but we don’t know if we could ever achieve it. These purchases can be done but they can only be done with a plan and a budget. Nothing happens without a budget and a distinct pattern of steps in order to achieve it. Whether you want to go on a trip around the world or you want to be your dream car, you should follow these key steps to achieve your goal.

Create a masterplan

A fun way of doing this is by using a whiteboard or a notebook and writing down what your goal is. Once you have written down your goal, you should create a masterplan. Here are some awesome things to add into your masterplan:

  • A deadline for purchasing your item
  • A final budget of how much it will cost
  • A breakdown of how much you can save to put towards purchasing it

Some people like having a PowerPoint presentation being played in the morning as a way of encouraging them. Other people like having a notebook to write down their plan. Whatever your method is, you should have a concrete plan that you use in order to achieve success.

Create a realistic budget

To highlight how important and how difficult this is, let’s look at the travel industry as the case study. 20% more of British people are expecting to spend more on holidays and travel according to research from the Association of British Travel Agents. If you want to go on a luxury holiday to glossy hotels in the Caribbean, you should create a budget that looks like this:

  • Decide if you want first class tickets
  • Go for budget flight tickets if you want to spend money on a plush hotel
  • Search for deals at the most exclusive resorts on any Caribbean island
  • Pay for your hotel ahead of time to keep your budget in line
  • Understand that food in luxury hotels can be expensive

For people who love going on splashy holidays, you can still do this but you can also make concessions. For example, while on your Caribbean holiday, choose one element that can be luxury and others that can be budget friendly. You can stay in a hotel that is high end and then you can save money on food, shopping and activities.

If you want to go on an affordable holiday where you are not thinking about what you are spending all the time, it’s important for you to look for all inclusive package holidays instead. These fixed holiday costs such as car hire and flights can fluctuate if you do it yourself especially for a once in a lifetime trip. By bundling everything together, you will be able to keep costs out of control.

Once in a lifetime trips and holidays can easily spiral out of control financially. It’s human nature to want to go big because it is something that you have been dreaming about.

Create a separate bank account

We all know the feeling when it comes to saving money for that must have purchase. You get started, you start saving and doing well and then something comes up and suddenly your splurge fund has been depleted. You can solve all of this by creating a separate bank account for your once in a lifetime purchase or product.

It is clear that for Brits, fashion and retail shopping therapy is something that is loved in the nation. London Fashion Week found that more than £27 billion was generated in womenswear sales in 2015, according to research. If you want to splurge on a new piece of clothing, bag or pair of shoes and it is a designer label, the first obstacle is that you need to spend a lot of cash to purchase your product. To get this money, you need to create a system of saving money so that you can make the purchases.

Fashion purchases are expensive because of the labour and creativity that has gone into the products. If there is a product that you have dreamt about, you should create this account that you cannot withdraw from for a set period of time. This will help you rack up plenty of savings without withdrawing from it in a way that will stop you from achieving your goals.

Create a maintenance fund

Once you have acquired your dream product or purchase, you still need to have money to maintain your dream. This is especially true for people who are passionate about buying their dream car. Rolls-Royce Motors recently announced that they experienced their second best ever sales record in 112 years of doing business, according to this release. Despite the popularity of super luxury cars that many people dream about owning, they are still extremely expensive to maintain. If it is your dream to own a supercar or a luxury car, you need to know that you will constantly be putting money into it so that you can operate it.

You should start saving for your maintenance fund as soon as you start saving for your dream car. Without a maintenance fund, it is going to be hard for you to keep up with the cost of your once in a lifetime purchase being your dream car.

Have a deadline

With a budget and a deadline, you will be able to pay for your once in a lifetime purchase. You need to set a realistic deadline. For a luxury holiday, depending on your job, you might need six months to save for your holiday. Your dream car could take longer, depending on how aggressive you are with your saving and spending. You need to make a deadline and you need to stick to your deadline in order to achieve your goal.

Are you ready to achieve your dreams and buy your once in a lifetime purchase? Make sure you follow our top tips while keeping your budget in check.

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