Forget Credit: How to Save Cash for the Big Purchases By Tisha Kulak Tolar At Isnare.com Ezine Articles

As a society, we are used to the convenience of nearly everything. For many, debt begins to spiral out of control because people think their bit of plastic is nothing more than a convenient way to satisfy their gotta-have-it-now attitude. Many fail to have a plan to pay back what they have spent on credit. Instead, they wrong assume that there are spending free money. It isn't until the bills and balances start piling up do they realize what kind of mess they have gotten themselves in to and can not foresee a way to pay it back.

Many credit card purchases occur because consumers lack patience to save up the cash. They see the big screen television or the latest model of computer and they have to have it now. They spend freely on credit and fall headfirst into debt. Here are some ways to slow down the impulses and set goals for saving cash for the big ticket items:

1. Make a Plan

Once you have zoomed in on something you want to have, start formulation a plan for savings. If the price of the items is $1,000, break that number into payments based on how much you can afford to put away each month. If you can afford $100 every bi-weekly pay, you will have to save for 5 months before you have your goal amount. It may seem like forever, but the more you save and the longer you wait to get your hands on that item, the better off you will be. You will feel like a champion handing over cash instead of your credit card and you will not have to worry about accumulating debt. You also may change your mind about the "have to have" status of the item if you have to wait to get it. Saving cash may help you eliminate unnecessary spending on a lot of impulse buys.

2. Commit to Saving

As soon as you know your magic number, commit to tucking away that amount or more each time you get paid. Set up an automatic deduction from your account at regular intervals or register for an account at SmartyPig, where you can set savings goals and allow others to contribute money to your savings plan. If you really want the item you are saving for, nothing should stop you from putting away the money.

3. Do More Work

If you have your heart set on something wonderful, it is likely you will find the motivation to put in more hours at work or find a second job to help you save faster. Especially around the holidays, retailers and other places of business are in need of a few good people to supplement their regular staff. If you can not commit to the hours, use your hobbies to earn you extra cash. Mow lawns, shovel snow, sell your crafts - whatever talent you have can turn a profit while you still keep control of your schedule.

4. Make Your Junk Work For You

Look around your house for stuff you can sell online or at a yard sale. Commit to putting all monies earned directly into your savings account. This is a beneficial way to rid your life of clutter and turn a profit.

5. Make Sacrifices

To save faster, give up some of life's luxuries that you can live without, such as dining out or having cable television for a few months. Depending on your motivation, you may find that the more you give up and the simpler your life becomes, you may discover a whole new way of living frugally.

6. Keep Tabs on the Merchandise

As you continue to build up your cash, keep your eye in the item you want to buy. Chances are good that at some point, the item will go on sale or you will find a cheaper price by doing research online or at other stores. In the event you find what you are looking for at a cheaper price, you may be able to afford the item well before the goal date you had originally set for yourself.

7. Do It Again

After the exhilaration of setting a financial goal and reaching it, take time to celebrate with a pat on the back - then get ready to do it all over again. Getting into (and staying in) the habit of saving money, will leave your feeling more financially confident and better prepared to handle your money in the future, without relying on credit.

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