Here are a few tips on how to plan for life’s big expenses:

1. Prepare a budget to assess your current situation
2. Do your research
   • How much will this purchase ultimately cost you including extraneous expenses such as taxes?
   • If you finance the purchase…
     • How much will it cost you per month?
     • Do you need to put money down?If so, how much?
     • What is the annual interest rate?
     • When will payments begin?
     • When will payments end?
3. Evaluate where this purchase fits into your existing budget.

*Note: You should NEVER tap into emergency funds for big purchases. These funds are set aside in the case of a sudden illness, loss of job or other unexpected reasons.

Once you have evaluated your situation you may need to either save more or spend less. Here are a few tips on how to save money for those big expenses:

1. Set aside money monthly in a savings account towards the purchase.
   • Working with a banker to withdraw money each month from your checking account and deposit it into your savings account automatically can help you save by taking care of the hassle of transferring the money and limiting your accessibility to it through a debit card.
2. Work overtime.
3. Take on a temporary second job.
4. Sell items.
   • This can be done in a garage sale or on several websites across the web, such as eBay.
5. Cut back on non-fixed expenses.
   • Try reevaluating the items you choose at the grocery store, or the number of times you go out with friends to eat, or for drinks.
6. Cut back on frivolous expenses.
   • Cutting back to 1 latte from Starbucks a day instead of the regular 2 can save you around $100 a month.
7. Evaluate other purchase options.
   • Sometimes we have to reevaluate our expectations and purchase a less-expensive option. To help you separate what you need from what you want, take a sheet of paper and divide it into two columns. On the left, write down the features this big purchase must include. Then, on the right, write down the features that you’d like to have. Then compare the results to the options that are in your price range.
8. Wait longer.
   • This may help you come up with a larger down payment, which in turn can lighten your monthly payment.

There are three things to think about when assessing the decisions that center on choosing the right college path:

Be realistic – If you’re career path is low-paying, don’t take out large loans. While education is an investment, you want to be certain that you’ll be able to pay them off.

Think about affordability – An Ivy League education may be trumped by the price tag.

Do your homework – Look for scholarships, grants, and contests that you can apply for, it may make the difference between your dream school and community college.