How do I save for a big purchase?

Concerns & risks

You want to buy a new laptop or take a trip, but don't want to put it on a card.

Buying on credit can add interest.

Causes & evidence

Planning ahead avoids debt. See compound interest.

What to do

1. Set a goal amount and date.
2. Divide by months.
3. Automate transfers.
4. Track progress.

Common mistakes: Common mistakes: not setting a target date. Set the goal amount and date, then divide into monthly savings. Use a separate savings account. Watch out for impulse spending that eats the fund. Automate a transfer on payday so the money moves before you can spend it. Rename the savings account after the goal, like 'New Laptop,' to keep it motivating. Look for price history before buying so you don't overpay, and watch for sales around the time you'll hit the goal. If something unexpected comes up, adjust the date rather than quitting entirely. Paying cash means no interest and no monthly payment hanging over you afterward. It also feels amazing.

Speed Man tip: Use a separate savings bucket.

Wrap-up: Set a goal. Automate. Track progress.