Large Purchase Savings Plan
Set a purchase target, required amount, timeline, and recurring savings contribution for a planned major expense.
What Large Purchase Savings Plan gets you.
By the end of this upgrade you will have a specific purchase target, required savings amount, timeline, and recurring contribution set up for your planned major expense.
- Description and estimated cost of the planned purchase
- Desired purchase date
- Current savings earmarked for this purchase
- Monthly budget showing available surplus
Run the upgrade.
- 01
Define the purchase and total cost
Name the specific item or goal and research a realistic total cost, including taxes, fees, or delivery costs where relevant.
- 02
Set the target purchase date
Choose a specific date or month by which you want to make the purchase.
- 03
Calculate the savings gap
Subtract any funds already saved for this purpose from the total cost to find the remaining amount needed.
Savings gap = total purchase cost - current dedicated savings
- 04
Calculate the required monthly contribution
Divide the savings gap by the number of months until your target date to find the monthly amount to set aside.
Monthly contribution = savings gap / months until target date
- 05
Open or designate a dedicated savings vehicle
Use a separate savings account or sinking fund so this money is not mixed with everyday spending or other goals.
- 06
Automate the contribution
Set up an automatic transfer for the calculated monthly amount on a set date each month.
- Purchase item, total cost, and target date are documented
- Required monthly contribution is calculated
- A dedicated account holds funds for this purchase only
- An automatic transfer is active for the required amount
Monthly
- Confirm transfer executed and balance is on track
- Adjust monthly contribution if the target date or cost changes