finances can be complicated but they don't have to be i break down financial topics that may seem

complex and overwhelming so you can start taking action on your financial goals i'm a

tally and it all starts here on Personal Finance Redefined.

Happy Monday, everybody, and welcome to another episode of the podcast.

Today's episode is about how to save for a big purchase.

So one of the questions I'm asked most is how best is it?

How best do I save up for a big purchase?

Whether it's a wedding, a big trip, a first-time home

purchase, they should all be treated differently, and they should be treated differently than the way

other people invest, the way your neighbor invests, the way that they're going to save for that big

purchase, because you may be an entirely different place, likely are, than another individual with the same goal.

So whether it's investing to ensure you have enough to buy your dream home, known as

investing for capital appreciation, hoping your money appreciates, rises enough to reach the

number to buy the home or take the trip, or investing slash saving

to ensure you'll be in the right place to take that trip, to go back to school, whatever it is.

And that's capital preservation, how best to preserve the money you worked so hard for,

so it's ready for that big purchase, which may not necessarily

mean sitting in cash because there's something known as purchasing power. And purchasing power

is just another way of saying inflation. As the prices and services, as the cost for that

rises over time, cash devalues. It becomes worth less. So that same $100 today,

what it buys you, well, it's not necessarily going to be able to buy $100 worth of the same

exact goods in the future. So how do we best preserve our money?

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