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How to Budget for Big Ticket Items or Trips

How to Budget for Big Ticket Items or Trips

By Les Stephen 

Whether it is a new vehicle, that trip of a lifetime or maybe even planning for an addition to the family, it is a good idea to plan financially.  We live in what I often call a “Microwave” society in which we seek instant gratification that can have devastating effects on planning for your future. It is way too easy today to simply put that trip on a credit card or take funds out of your retirement program.  

With a little planning, there is another way to handle these events.  If we can make room for each dream in your monthly budget without ignoring your daily needs or your long-term financial goals, we can make them a reality.  Below are a few tips that may help with the process.

If you are interested in learning how to manage your financials in a way that is appropriate for your unique goals, reach out to a Rayhons Financial advisor today! Call us at (480) 507-2425 or contact us online

Know how much you will need 

Be Specific on all the expenses that go along with the goal.  Estimate on the high side of expenses so as not to go over budget.  

Set up a separate account 

If you co-mingle funds it is far too easy to spend the money on something else that comes up.

Make the goal a line item in your budget 

If you treat the goal like any other bill your chances of success will go up.  

Review your overall budget to see if there are some areas to trim 

When you review your finances, you may find several areas that may be an opportunity to reduce your overhead.  If you can reduce in some of those areas, it will take stress off your budget. 

Set incremental goals along the way 

Remember to check in on your progress along the way to make sure you are on pace.  Adjustments can be made when you know if you are on schedule to hit your target.

Do not try to do too much at once 

If you have multiple goals, I suggest prioritizing the goals according to importance and cost.  If you have some less expensive projects, it may be a good idea to tackle them first.  Checking goals off the list feels good and helps build momentum.  

Hopefully, this will give you some ideas on how to make budgeting for your goals a bit easier.  Remember, the theory is to still enjoy your life while you are working towards your dreams.  Best of luck!

If you are interested in learning how to manage your financials in a way that is appropriate for your unique goals, reach out to a Rayhons Financial advisor today! Call us at (480) 507-2425 or contact us online

The content in this article was prepared by the article’s author. Voya Financial Advisors, Inc. does not endorse its content, and the views expressed may not necessarily reflect those held by Voya Financial Advisors, Inc.