It is obvious that when planning a big purchase in your budget, it is better to use cash rather than credit cards. The year 2024 has arrived and it’s time for investments, but consider creating a budget to avoid the trap of high interest rates.
1. Important Household Appliances
Are you planning to buy a new refrigerator, stove, or washer and dryer set? The price of such appliances ranges around $1000 or more. Decide how long you can wait before purchasing a new appliance and save accordingly. If you plan to buy a new refrigerator for $1500 within the next 12 months, set aside $125 to $150 per month until you gather the necessary amount.
2. Occasional Jewelry
Do you plan to buy jewelry for an engagement or anniversary in the near future? We roughly know that such purchases require significant financial investment. According to “The Knot’s 2023 Jewelry and Engagement Study,” the average price of an engagement ring is around $5500, but over half of the respondents spend between $1000 and $4000. When it comes to a wedding ring, you should budget around $1000.
3. Home Gym
If you’re tired of waiting in line for equipment at your local gym, investing in a home gym can be a good idea. The average cost of purchasing such a gym is $2000. If you manage with dumbbells, a mat, and resistance bands at the gym for a while, it’s an opportunity to quickly save up for your own gym.
4. New Mattress
Everyone needs to replace a mattress at some point. If you’re considering purchasing a luxury model, you’ll have to spend $1200 to $3000 or more, depending on the size, brand, and materials. You can almost always spend some time saving up before contacting the store, and this is a big purchase that is definitely worth budgeting for.
5. New Furniture
The cost of furnishing a three-bedroom house is at least $6000. And just the living room alone can cost you $1500 or more, depending on the selected items and quality. It’s worth allocating funds in advance for furniture so that you can pay the full amount at the checkout.
6. Cell Phone or Smartwatch
The average cost of a new smartphone in the USA in 2024 is around $940. Smartwatches usually cost between $200 and $1000, depending on the brand. If you aim to purchase one of these devices, start saving up for the purchase price by setting aside a specific amount each month. This way, you’ll gather the required amount before you know it.
7. Vacation
The average cost of a vacation for two people is around $3838. Instead of spending nearly $4000 on a credit card and paying interest later, start saving for it earlier. Divide the cost of your trip by the number of months you have before the departure date and start saving the appropriate amount each month.
FAQ:
Q: Why is it better to use cash than credit cards?
A: Using cash eliminates the risk of getting into high-interest debt.
Q: How can I save for big purchases?
A: You can set a budget and regularly set aside a specific amount of money for the intended purchase.
Q: What are some examples of important household appliances worth saving for?
A: Examples include a refrigerator, stove, washer and dryer set.
Q: What are the average prices of occasional jewelry and how can I save for them?
A: The price of an engagement ring is around $5500, and a wedding ring is around $1000. You can save for them by setting aside the appropriate amount of money monthly.
Q: What is the average price of a home gym and how can I save for it?
A: The average cost of purchasing a home gym is $2000. You can save for it by performing exercises with dumbbells, a mat, and resistance bands.
Q: What are the average costs of purchasing a new mattress and how can we save for it?
A: Mattress prices start at $1200, but can exceed $3000. You can save for it through budget planning and setting aside the appropriate amount of money.
Q: How much does furnishing a house cost and how can we save for it?
A: The cost of furnishing a three-bedroom house is at least $6000. You can save for it by setting money aside in advance to pay the full amount at the time of purchase.
Q: What are the average costs of purchasing a cell phone and smartwatch?
A: The average cost of a new smartphone is around $940, and smartwatches usually cost between $200 and $1000, depending on the brand.
Q: How to plan saving for a vacation?
A: You can divide the cost of your vacation by the number of months until your departure and save the appropriate amount of money each month.
Definitions:
– Budget: Planning expenses and savings for specific purposes.
– Interest: The amount of percentage that must be paid for using borrowed money.
– Mattress: A large and often soft bed on which to sleep.
– Furniture: Items used to furnish a house, such as chairs, tables, beds, etc.
The source of the article is from the blog myshopsguide.com