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5 Tips for Paying Cash for Big Purchases

5 Tips for Paying Cash for Big Purchases

There has been a buzz lately celebrating people paying cash for big purchases. Paying with credit sure doesn’t make the news, revealing that paying cash is not the norm. Even though it is not a typical choice, saving in advance for large items is definitely possible.

5 Tips for Paying Cash for Big Purchases


A few basic strategies will take paying cash from a wishful thought, to a reality.

View It as a Possibility

Many consumers believe credit is the only option for large purchases. I understand why this is so tempting to believe since we are surrounded by offers for credit.

But pause and rethink this model.

How great would it feel to hand over cash for a used car from a dealership? What kind of negotiating power would that provide {hint: a lot!} My friend’s parents saved for years to be able to pay cash for every vehicle. Even in money is tight you can get creative to make this happen.

Set a Goal

What is one large purchase you would like to pay for in cash? A car? A home? A vacation? Setting a specific goal is an important first step, and far more effective than a too-general statement of, “I want to do a better job saving my money.”

Make a Plan

Now make this goal concrete. It has to be realistic, measureable, an include a timeline.
Fill this in:
I would like to save ________ dollars by ___________ date in order to pay for ________________ in cash.
Then breakdown how you will accomplish your goal. A few years I ago I knew I had to save up for braces. I needed to make $150 extra dollars each month. I opened a separate savings account with Tangerine, and brainstormed how I could make that income. I was already tutoring, but that was to contribute to our household expenses. After two and a half years I was able to save $3000 by writing for blogs and magazines. Now to save for the next mouth….

Ignore the Voices

If I am going to try to pay cash for big purchases, I have to tune out voices that counter my purpose. These include:
You deserve this now
Buy now, pay later
Debt is essential for a good credit score
To stay on track, I also have to watch my own thinking. There were times where $3000 seemed impossible, but I was so motivated to reach my goal that I wouldn’t give up. And surround yourself by like-minded people who will encourage your out-of-the-box thinking.

Celebrate Small Successes

Find a way to track your goal and milestones you reach. Perhaps a thermometer posted on the fridge that records savings in small increments. And decide how to celebrate small successes, without spending money, of course.



It is not difficult to pay for large purchases with credit. The road less travelled involves saving up and paying once you have the cash. With determination and a concrete action plan, it is possible.

What is the largest item you have paid for with cash?

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