BUDGETINGLIFESTYLE & TRAVEL

Planning for Big Expenses

As we get older, the expenses get larger. Our wants may shift from a new outfit to finding ways to study abroad or take on larger, post-grad expenses. Preparing for them is the best way to avoid getting into trouble with loans or debts.

Why plan?

First, determine how much the expense will be. Let’s say you plan to study abroad. Look at the cost of plane tickets around the time that you would be going, and research different airlines. Be sure to plan for the “what ifs.” What if the flight gets delayed or canceled, or if the airline loses your luggage and you need to buy clothes until it’s found? Planning for everything will help ease your stress when the time comes. In addition to the cost of the classes and room and board, what other expenses might arise during your stay?

SMART goals

Creating a goal is a great tool to help manage your plan for that big expense. As you consider how much you’ll need to save each week or month, set goals that are SMART — specific, measurable, attainable, realistic and time-bound. When you see what you need to reach your goal, it can make achieving it that much easier.

Celebrate

They key is to enjoy or appreciate whatever the planned big expense is, whether it’s studying abroad, buying a new car, or going on vacation. Working hard to save for a big purchase is always a reason to celebrate and enjoy it. Planning will help remove the stress, and you will enjoy it that much more!

Sources:

https://corporatefinanceinstitute.com/resources/management/smart-goal/