Budgeting for a Large Purchase

February 01, 2013 -- RV Trader

Buying a recreational vehicle isn't just another toy - it can be a brand new experience. This new purchase enters you into the RVing lifestyle - which includes camping, traveling, family get-togethers and seeing the world! Excellent choice.

Consider buying a RV an investment in your happiness. Now that you’ve decided you want to own a recreational vehicle, what are the next steps that await you? Have you thought about how you will pay and/or finance your RV? From the unexperienced budgeter to the most frugal of all, large discretionary purchases can throw even the most disciplined savers off course. Here are three easy tips to help you stay away from the red and enjoy your new RV!

Do the numbers. It is important to take a good look at your finances. Fortunately, there are many options available to people who wish to buy a new motorhome, travel trailer, toy hauler or other RV! Some prefer to pay for their RV in full at the time of purchase (which may be good for that pop up camper you've been eyeing, but not as attainable if you're looking for a new motorhome). So, depending on the type of RV you choose, and if financing is an option for you, interest rates are still at historic lows and it is a good time to make a purchase. If you qualify, you can make low monthly payments that you (and your budget) will be happy with!

Make it a priority. This may seem like an easy one, but if you do not consciously make an effort to budget exclusively for your recreational vehicle purchase, it can easily get forgotten. Smaller purchases can eat away at your RV fund, so it is your job to not let them! One of the best things you can do is set aside a completely separate savings account that is solely for your RV purchase. Most banks now let you set up automatically recurring money transfers into your account at your discretion.

Remember what you’re saving for. Whether you’re 25 or 75, everyone loves being independent. And who doesn't love the freedom of traveling the open road? Sometimes we can get lost in the day-to-day and forget to make time for ourselves. That’s what you are really saving for. You’ve got your eyes set on warm days, spending time with friends, camping, site-seeing, and being able to pick up and drive off into the sunset if you so choose. Remembering why you’re buying a RV will remind you why it’s so important to stick to your budget. You’ll be driving away in no time!

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