My seven-year-old son has been saving up to buy an iPad because we — the parents — decided that his Android tablet was just enough.

Although we may cave and help him out when he gets closer, so far we have been enjoying his creative ideas and persistent efforts to come up with money. But, as you’d expect, it takes a lot of home chores and Tooth Fairy payments to come up with several hundred dollars.

What makes his endeavours to get that desired iPad admirable, however, is the dedication in working toward a long-term goal, sacrificing many of instant-gratification moments while focusing on the end goal. This dedication is a good sign for successful money management.

In fact, many adults lack the discipline required to stay on track when a big goal is far in the future — whether the goal is financial or even personal. With many temptations along the way, it is easy to fall off the wagon. What is helpful to keep the persistence going is to have a clear idea about what you’re saving for as well as how much you need and why. Setting a time frame can also help you realise your achievements along the way.

Here are a few ideas to help you save up for a major purchase that you probably won’t lay a hand on it for several months or even years.

Know the price

It may sound like common sense, but many people actually don’t research how much money exactly they need for a major purchase. Buying a house? Know your price range and figure out how much you will need for a down payment. Of course, things may change, but even a ballpark number will help you frame a way to get there. It will make your saving effort more realistic and can motivate you mark your progress as you get closer to this amount.

In addition, a price or an amount of money that seems impossible to come up with within your own current financial situation may help you look into alternatives — not only in terms of what you’re buying but also in terms of how you’re coming up with the money.

Create more income

If you’re running on a tight budget, you may still be able to channel some money to your savings for this major purchase. But that is not everything; you can also think of special ways to come up with additional income. That can be taking a part-time job that feeds only a bank account dedicated to that future major purchase or even doing some odd jobs in the weekends or evening for the same purpose.

The more you keep your eyes on that goal, the easier it will be to figure out how much you need to make monthly to meet it within a reasonable period. What matters here is to realise that if your current income won’t cut it, you need to find new, different ways to come up with money. Don’t overlook small savings as long as they are regular; these can add up quickly to a decent amount over the long run.

Motivate yourself

Assuming that your initial decision about the purchase wasn’t based on a whim, continue to think about the pros of having that item. Are you going to become a homeowner? Getting your dream car? Going on a once-in-a-lifetime vacation? Or even getting an iPad? Regardless of how big or small this purchase is, if you really wanted it, keep this in mind at the moments when you feel that it is not coming fast enough.

This ability of knowing that dreamlike purchases can materialise can help with many of the savings that probably won’t be used for many years or even decades. Think of retirement plans, college funds, etc. When you have the ability to see the benefit of holding off on today’s pleasure for a future goal, you will be able to handle these long-terms saving much better.

 

The writer, a former Gulf News Business Features Editor, is a Seattle-based editor.