The magic of credit cards is that they offer us instant gratification—and delayed pain in the form of debt that grows thanks to steep interest rates. But no matter how many times we’ve been burned by high interest rates and expensive monthly payments, many of us continue using our plastic for non-necessary purchases.

Here’s a look at how and why saving up for such purchases is often the best move for those seeking financial independence.

Why Saving Makes Sense

Somewhere in our financial souls, most of us understand that saving for major purchases (like new gadgets or fancy accessories) is a smart financial move. Here’s why:

• We cool down. Impulse buying is exciting because it allow us to act on whims, which can be very satisfying in the short term. But if you give yourself some time to think about a purchase (say, while you’re saving the funds to buy it), that initial excitement cools and you can better evaluate whether you really need whatever it is.
• We avoid interest. Credit cards sure make spending easy, but unless you pay your balance in full every month, you end up spending much more for stuff you buy with your credit card than the price listed. Making a purchase only after you’ve set aside the amount you need lets you make one payment and enjoy your buy without worrying over monthly bills for it.
• We make do. During the period between identifying something you want and the time when you actually buy it (that is, the saving period), you learn how to live without whatever it is you want to buy. This empowers you to either decide you don’t need that item after all (and save yourself some money) or better appreciate what you get when you finally pull the trigger. Either way, you win.

How to Save for Purchases

So what can keep your money from getting funneled into everyday expenses? The web site SmartyPig.com lets you set up goal-specific savings accounts that actually earn interest (about 2.15 percent)!

The site works by letting you transfer money from an existing bank account into a Smarty Pig account, where you can indicate how much something costs and when you want to buy it. The site indicates how much you need to deposit each month and automatically deducts that amount from your other account.

As an added bonus, when you’ve reached your goal, the site allows you to decide whether to buy in cash or with gift cards, the latter of which gives you a certain percentage of cash back.

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