4 ways to pay for a major purchase
- Start saving early toward your goal amount with a plan to buy in the future
- Use existing savings or income
- Borrow money
- Use a combination of savings and borrowing
Understand what you can afford and your payment options
How to make a major purchase: the process
- Set your budget, and make it firm. Research prices, decide how much you’re willing to spend, and have a plan for how you’ll pay. Don’t forget to factor in costs for things like taxes, shipping or delivery charges, installation or setup, accessory and add-ons, and others—these can add up and stretch your budget if you don’t account for them.
- Research your options, and figure out exactly what you want to buy. Keep in mind, depending on what you’re buying, you might find a better deal on a discontinued model.
- Decide who to buy from or who can help. It never hurts to check local listings to see if you can find what you want to buy secondhand for a lower price.
- Pay for your purchase—and, in some cases, start paying it off. As always, if you took on debt to cover your purchase, paying more than the minimum payment can help you get ahead and pay less overall in interest.