Whether you’ve found an item you want (such as a weekend getaway this summer) or you need to make a large purchase (like for a laptop just in time for back-to-school season), there are a few steps you could walk through prior to completing the purchase.
Let Some Time Pass
Typically with large purchases, you can have a window of time in which you can wait and think about the purchase. Even if the purchase is necessary and has a deadline of some sort, like a laptop for back-to-school, take just one weekend or a few weeks to make sure you either still really want or really need the item that will be the large purchase.
Letting some time pass will also give you the opportunity to watch prices in case the item goes on sale and could give you the opportunity to get a better deal.
Review Your Finances
After some time has passed and you either still really want or really need the item that will be a large purchase, review all of your upcoming expenses and see when this large purchase can fit into your budget.
There may be a certain time, such as right after you receive a paycheck or a month with fewer expenses than usual that is better to allocate funds towards the large purchase. On the other hand, there may be times when your monthly budget is tight, such as around the holidays, where a large purchase won’t be a good idea.
Choose Your Payment Method
If this large purchase has been planned for a while, there is a chance that you will have funds in your savings account to cover the large purchase when you buy it.
However, if you’ve had less time to plan about this large purchase but still really want or need it right now, considering an alternative payment method may be a better route. You could charge the large purchase to a credit card and pay it off over time, or apply for a personal loan that could cover the large purchase.
With large purchases, planning as far out as possible could allow you the time to shop around for the best price, plan out your income versus expenses, and secure a payment method like a new credit card or personal loan if possible, however, making a large purchase within a short timeframe is doable as well.
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It can be challenging to balance your savings, loans, and other accounts all in one place. However, we offer many ways to help manage your finances at Camino Federal Credit Union through online banking and mobile banking app. Please give us a call at 800-835-3400 to speak with one of our Member Advisors, or contact us online at caminofcu.org for more information.