TSM Tips: How to Plan for a Big Purchase in The Shred Method™

Whether it’s a dream vacation, a home renovation, or a new vehicle — planning for a big purchase doesn’t have to disrupt your financial goals. In fact, The Shred Method™ gives you multiple tools to help you prepare for a large expense while staying on track with your plan.

Here are the best ways to plan for a big purchase using the software:

✅ 1. Set a Lower Limit on Your LOC

If you want to use a portion of your Line of Credit (LOC) for a big purchase, we recommend lowering the limit in your financial information to ensure The Shred Method™ only leverages the amount you’re comfortable with.

• After running your plan, go to the Reports tab → LOC Account Report.
  
  

• Check the projected LOC balance.
  
  

• Adjust the LOC limit if necessary to create a buffer for your big purchase.
  
  

This method allows you to reserve a portion of your LOC and prevents The Shred Method™ from using the full balance for debt reduction, keeping that extra room available for when you need it.

🗓️ 2. Add the Purchase as a Household Expense

You can simulate how the purchase will impact your plan:

• Go to the Edit Financial tab.
  
  

• Add it as a Household Expense.
  
  

• Set the interval to Yearly.
  
  

• Add an End Date close to the Start Date to mark it as a one-time expense.
  
  

After entering it, recalculate your plan. This allows The Shred Method™ to account for the purchase in advance and prepare by reserving the needed funds in your Shred Account (HELOC, LOC, or Checking).

💰 3. Start Saving for It in a Bank Account

If you’re saving monthly toward your goal:

• Add your monthly savings as an amount in the Bank Account section.
  
  

• You can also create a new bank account just for that savings goal.
  
  

Once added, recalculate your plan to see how your cash reserve grows over time and how it influences your overall projections with The Shred Method™.

💳 4. Planning to Use Credit? Add it to Consumer Debts

If your plan is to make the purchase with a credit card or take on a new loan, you can:

• Go to the Consumer Debt section.
  
  

• Add the amount, interest rate, and monthly payment once you know them.
  
  

This way, The Shred Method™ can include the new debt in your strategy and help prioritize its payoff according to your overall financial picture.

Big purchases don’t have to be a setback. When used correctly, your plan in The Shred Method™ can work with your goals — not against them — and help you remain in control of your cash flow while still enjoying the things that matter most.

As always, if you have any questions about how to best plan for a big purchase using your Shred account, feel free to reach out to hello@theshredmethod.com — we’re here to help!

We also want to ask you a favor, we're currently trying to build a database of HELOC providers to help new members find a lender wherever they may be based. We would greatly appreciate it if you could fill out this form based on your HELOC provider.