First Person Story: How I’m Saving for My Next Tech Purchase

It's time to upgrade my computer. Currently, I do all my work on an old Sony Vaio laptop. Well, it's supposed to be a laptop but it's not very portable since the keyboard doesn't work and the battery won't hold a charge. I have to use the laptop as a desktop computer because of the external keyboard and permanent power cord. The screen is small and dull and the computer is slow.

I've set my sights on a new computer with dual monitors, which I became accustomed to when I worked a corporate job. Now that I'm a freelancer, I'm making do with what we have - for now. It's tough going from a powerful computer with two big, crisp monitors to the small, slow, buggy Vaio. So we're saving for my upgrade.

Where is our money going?

The first thing I did was create a simple spreadsheet to track expenses. I'm diligent with it. We need a clear picture of where the money is going so we can determine where to tighten up. Within the spreadsheet I have two designations; 'need to have' and 'nice to have.'

Reducing our monthly nut

At first glance, there isn't much wiggle room in the monthly 'need to haves.' The house payment is the only fixed cost though, so we're working on reducing our electric bill, petrol expenses and grocery costs. Being a freelance writer, internet service falls into the 'must have' category. The local cable company is running a cable, internet and cellphone bundling special and I'm investigating the offer. That may be an area where we can reduce our monthly nut.

The 'nice to haves' offer significant savings potential. No more premium cable, fancy coffee-shop drinks, gym memberships or upscale restaurant dinners at the moment. Basic cable is fine. When I dropped my gym membership I picked up three exercise CDs at a thrift shop, so my fitness isn't suffering. It's not hard to trim the 'nice to haves' if we keep in mind that this doesn't have to be a lifetime commitment. We are focused on a goal; we're saving for my new computer. Once we've accumulated enough money to get it, we can add back the things that really matter to us. If they still matter.

Other areas we've trimmed

We cut out ATM use and dropped our telephone land line. Instead of visiting over lunches or lattes, I spend time with friends over bike rides and long walks. Additionally, I never shop for groceries (or anything else) without a list. There is no room for impulse buys, no matter how good the price is.

Going forward

Last week, we set up a simple no-fee, free-checking bank account and named it 'new computer account.' By averaging our normal monthly expenditures, it's clear where our money is going. Now we're in the belt-tightening phase. At the end of every month we'll subtract that month's expenses from our normal monthly spending. The difference will go into the 'new computer account'. We will continue on this program for as long as it takes to buy a new computer, maybe longer.

Of course, I won't buy my dream computer until it goes on sale.