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However hard you try to be frugal with your money, save your hard earned cash and budget carefully, there will be times your life when you’ll need to fork out for a big ticket item. If it’s a cold January day and all of a sudden your heating packs up and you have no hot water, it may be time for a new boiler. Not many people just have thousands of dollars lying around so what do you do? The same thing might occur if you have a major disaster with your usually reliable car or if you locate a massive water leak coming from your roof. Nasty surprises could be lurking around any corner, and you need to know how to use your finances wisely to rectify them.
However, big-ticket spends items don’t necessarily have to be negative. Perhaps you’re saving up for a holiday of a lifetime to the plains of Africa or the glacier-covered vistas of Iceland, and you need a final push to get over the financial finish line. There are many options that you can utilise to fund your purchase.
Savings
You should already be making some effort to save money whether you have a big ticket item in mind or not. Saving for a rainy day promotes monetary discipline and could see you replacing your boiler without having to venture into the world of personal loans or overdrafts. As you see your little nest egg grow, you’ll become more motivated to continue with your savings plan. When you construct your monthly budget, it’s always a good idea to set a consistent amount aside for savings.
Borrowing
Your savings may not cover the entire cost of a nasty surprise. Major car parts don’t come cheap, so you may need a little extra help to finance getting your car back on the road. Apply for one of the credit cards reviewed on best.creditcard that has 0% on all purchases for at least six months. This way, you will effectively be treating your credit card like an interest-free loan only paying back the capital you borrowed and no interest whatsoever.
Think Outside The Box
If you have some items in your home that you haven’t used for a while, think about selling them using an online platform like ebay.com. How many old mobile phones do you have taking up room in a drawer? Do you have any old consoles that could find a better home? By selling your unwanted stuff, you could make a small fortune, ready to put towards your big-ticket item.
Being financially successful means striking the perfect balance between spending and saving. You don’t want to be saving every penny that comes your way to accrue a giant nest egg never to spend any of it. Where’s the fun in that? Budget sensibly, save for a rainy day and splash out on the odd luxury or two to enjoy the rewards provided by implementing sound financial sense.
