If you’re planning a big purchase but still saving up, budgeting is a great way to get what you want without stressing your finances. To help you get started, we’ll share our best tips on budgeting for two popular expenses: a car and an overseas holiday.

Tip 1: Set clear goals and calculate costs

Before diving into budgeting, estimate the total cost, including all related expenses.

For a car, consider the make and model you want, then add some extra for registration, insurance and maintenance.

For a holiday, decide your destination, trip duration, and the type of accommodation you want. Factor in a little extra for activities, food, travel insurance, exchange rates and souvenirs.

Identifying all potential costs will give you a clear picture of how much you need to save. Adding a little buffer will also help you avoid any surprises along the way.

Tip 2: Create a savings plan

Now that you know your total costs, it’s time to create a savings plan. Our Savings Calculator makes it easy. Enter your goal amount and timeframe, and it will show you how much you need to save each week, fortnight, or month. If the number feels too high, try adjusting the time frame until you find a realistic number that works for you.

Tip 3: Use Budgeting tools

Creating a budget makes saving for a big purchase easy. If it feels overwhelming, a budgeting tool can simplify the process. Our Budget Planner Calculator tracks income and expenses, ensuring that you avoid overspending, stay on budget, and consistently save for your car or holiday.

Similarly, our Budget Wise Account can help you manage your bills like a pro. It calculates your total bill payments and spreads them out evenly over a year. All you need to do is transfer the regular payment amount into your Budget Wise account each payday. When your bills arrive, Budget Wise can handle the payment for you.

Tip 4: Boost your savings with a high-interest account

Opening a dedicated high-interest savings account will help you boost your savings. It provides a secure place for your funds while earning interest on your savings balance, helping you to buy that car or go on your holiday sooner.

Tip 5: Check in on your budget

Reviewing your budget will keep you on track. If you find that your savings are falling short, consider cutting back on non-essential expenses or finding extra sources of income. Monitoring your spending will help you adjust accordingly and stay focused on what you really want.

Tip 6: Explore financing options

Financing can be a helpful way to budget for a big purchase, but it's essential to research your options first.

For a car, compare loan terms and interest rates from different lenders. Consider saving for a down payment first to reduce interest charges, and before you sign up, make sure the monthly repayments fit comfortably within your budget.

For a holiday, using a credit card with travel rewards or a personal loan can be beneficial, but be sure to understand the repayment terms and costs. You can also budget by paying for flights, accommodation, and travel insurance upfront. Then save for daily expenses like food and activities, so you'll have enough money when it's time to travel.

Tip 7: Stay motivated

When budgeting for a big purchase, you may be tempted to use your savings for other things. A little bit of motivation can go a long way to reducing the temptation. Try placing a photo of your dream car or vacation spot where you’ll see it daily, like on your phone background, fridge, or workstation. This simple reminder will keep your goals front of mind.

Enjoy your big purchase without the stress

Consistent saving and budgeting will help you enjoy your new car or overseas adventure without financial worries. Setting clear goals, using budgeting tools and checking in on your expenses will keep you on track. So, you can fully enjoy your new ride or well-deserved holiday.

Happy budgeting!