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How to Plan and Save for Major Expenses

Mar 7, 2025

Tax Day is just around the corner! Since you’re already looking at your finances, this makes it the perfect time to review your statements and update your spending plans for any major expenditures in your future. Let’s get started!

Part One: Reviewing

Especially if you haven’t been tracking your expenses regularly, take some time to go through your previous monthly statements. You’ll get the most accurate picture if you review expenses from the past year, but even looking at just the last several months is useful.

Make a spreadsheet that lists your various expenses, then mark each as a “want” or “need,” and again as “fixed cost” or “variable cost.” You can have further categories if you need the extra breakdown, but we recommend those four at minimum.

(P.S. Need help setting up your budget? Check out our Financial Wellness Center for tips!)

Once you’ve marked down your past spending, it’s time to truly commence the review, including:

  1. Checking your yearly 401(k) and/or IRA contributions. Have you contributed your annual maximum for last year? Remember – you have until April 15 to contribute for the 2024 tax year!

  2. Reviewing your autopay and autotransfer setups. Make sure they’re still good to go, or if there are any payments that need to be added, removed or updated.

  3. Reviewing your subscriptions. Make sure you’re not bleeding money – is there a service you’re still paying for that you haven’t used in a few months? Is it possible to downgrade a subscription you want to keep but don’t use as much?

  4. Reflecting on your income, spending, debt repayment and saving. What’s working and what’s not? Are you spending too much? Do you have a comfortable emergency fund saved up?

Consider requesting your free credit report too, especially if you haven’t checked it in a few months. This gives you the chance to make sure the information is accurate and can give you peace of mind that your personal information hasn’t been stolen and used to open accounts in your name.

Part Two: Planning

With your reviewing done, it’s time to think about your spending goals. Is there a grand vacation or a wedding coming up soon? Are you hoping to make a down payment on a house within the next few years? The more you can save ahead of time, the better off you’ll be.

The best way to reach your savings target is to sit down and make a plan. That can be daunting, but don’t worry, we’ve broken down some steps you can take! Your planning process might start like this:

Step 1: Determine how much you want to have saved by when.

Step 2: Calculate how much you’ll have to put aside each month to reach your target in time. For example, let’s say you want to have $3,000 saved for an event this time next year. Dividing $3,000 by 12 months shows that you’ll need to set aside $250 each month to reach your target. 

Step 3: Look at your monthly budget and find space for your saving goal. If you don’t already have the space, you will have to take a look at your wants and needs and determine where you can cut costs (whether by hunting for bargains or simply dialing back spending).

Step 4: Create a dedicated, separate space for your funds. You don’t want to touch these savings for other random spending, so consider stashing your goal-related money in a new account specifically for your goal.

Step 5: Determine ways to boost your savings. You could set aside these funds in a regular savings account, or you could take advantage of the higher interest rates on money market accounts or Certificates of Deposit. You may consider discussing investment options with a financial professional as well.

Taking a little bit of time now can save you a lot of stress in the future. If you need some more help with your saving or planning, come talk to us. We’re here for you!

 

Links:

https://www.annualcreditreport.com/

https://www.hondafcu.org/financial-wellness

https://www.hondafcu.org/checking-savings/money-market

https://www.hondafcu.org/checking-savings/savings-certificates

https://www.hondafcu.org/investment-retirement/investment-and-retirement-planning