Saving for a Large Purchase

On the  ⁠⁠Savings and Budgeting⁠  page, you learned how to allocate money manually to your savings categories.
If you want to reach a savings goal by a specific date, you can use the Budget Assistant to set up a Saving for a Large Purchase target.
To learn more about the Budget Assistant in general, see:  ⁠⁠Using the Budget Assistant⁠ .


Using the Saving for a Large Purchase Target

Let’s say you want to save for next year’s vacation — a two-week family trip to the Maldives.The total cost of the trip is $18,000.
It is now February and you need the full amount by September next year — 20 months from now.
To set this up:
    Make sure you are on the Budgeting page.
    In the Savings category group, click No target in the row of the Vacation category.
    In the Budget Assistant dialog, open the Target type dropdown list and select Saving for a large purchase.
    Enter 18,000 in the Amount needed field.
    Click the By date field and select a date in next year’s September (the date by which you need the full amount).
    Click Save.


What This Achieves

Setting up this target ensures that:
  • The Budget Assistant automatically suggests budgeting $900 per month ($18,000 ÷ 20 months).
  • If you consistently budget $900 each month, the suggested amount remains the same.
  • If less than the suggested amount is allocated in the current month, it calculates and shows the missing amount.
  • If you underfund the goal in one month, the Budget Assistant recalculates a higher required amount for the remaining months to ensure you still reach $18,000 by the target date.
  • You won’t forget to allocate money to the Vacation category.
  • Your savings grow steadily, and you will reach your goal by the target date.