One large purchase someone might want to save for is a car. To save the money needed, a common plan includes:
- Setting a specific savings goal based on the total cost.
- Creating a monthly budget that includes a fixed amount dedicated to savings.
- Opening a separate savings account to avoid spending the money.
- Cutting discretionary spending to increase savings contributions.
- Looking for additional income sources like side jobs or selling unused items.
- Monitoring progress regularly and adjusting the plan if needed.