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Basics Beginner: Financing a Major Purchase

Introduction to Financing a Major Purchase Budgeting for a Major Purchase Automatic Savings and Investment Plans for Major Purchases Appropriate Investments for Major Purchases Borrowing Money for Major Purchases Summary of Financing a Major Purchase
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Automatic Savings and Investment Plans for Major Purchases

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Automatic Savings and Investment Plans for Major Purchases

Things To Know

  • "Pay yourself first" by setting up an automatic savings program.

The most painless way to "pay yourself first" is to set up an automatic savings program. Consider having regularly scheduled withdrawals made from an existing account (e.g., the checking account where your paycheck is deposited) and transferred into a dedicated savings or investment account. Generally, any financial services institution that offers savings or investment accounts will offer an automatic savings plan.

Experts recommend creating an emergency fund as a first savings priority; three to six months’ living expenses is a rule-of-thumb goal. Ideally, this is where you would turn for that new refrigerator tomorrow.