So we spent part of yesterday planning next years holiday – campsite in southern France in Languedoc.
I love planning well in advance – it’s easy to allocate funds for without using any credit.
So the idea is over a 10 month period you save whatever you need to hit the target.
So over 10 months, it could be £150 a month (£1,500)
Or if the holiday is £5,000 – then you allocate £500 every month.
I love work it out in this manner, as large purchases can be spread over a year or two.
Lets take the car (PICTURED) as an example.
This is basically £38,000.
So that’s £1,055 over 3 years and it’s paid for in CASH.
This means for the next 3 years, you drive a piece of shit until you’ve saved up enough money to buy this depreciating item.
You can save for anything like this.
Fancy a drone ?
You can get a DJI Mavic 2 ‘Zoom ‘ for £1100.
Thats less than £100 a month for 12 months.
Even better, buy 2nd hand at £900 – and by the time you’ve saved enough up, there’ll be more on the market and cheaper too.
Forward planning is what it takes.
Plan everything ahead, then start allocating funds.
Take your laptop for example – we all know that in 2 to 3 years, you’re going to need a new laptop.
So have a laptop fund.
£100 a month over 24 months will get you THE top of the range laptop.
So you should have that money allocated each and every month because ITS GOING TO HAPPEN – you’re going to need a new laptop.
So rather than use credit to buy an item that depreciates as soon as you buy it, use actual cash, saved up and allocated.
We live monthly, so we should budget monthly.
