Smart Strategies for Making Large Purchases on a Budget

When it comes to large purchases, they usually fall into two camps: the stuff you want and the stuff you actually need. You know the first type well—those impulse buys that happen when you're scrolling through Instagram at 2 AM or trying to treat yourself after a rough week. You've been there.

Then there's the second category: the purchases that aren't exactly fun but are essential. Think a reliable laptop for work or a decent mattress so you don't wake up feeling like you wrestled a bear.

Here are some tips on how to navigate both without completely derailing your financial goals.

When it comes to the items you don't need

Sometimes that expensive item you're eyeing is more of a want than a genuine need. While treating yourself to something special can bring a temporary sense of satisfaction, it might disrupt your planned budget and create financial stress for you down the line.

Practice the 24-hour rule to avoid impulse buying

It’s likely you’ve experienced that sinking feeling when the high of a purchase wears off and you're left with the bill, also known as "buyer's remorse." Even though you know this feeling all too well, it can still be hard to resist the lure of an impulse purchase. It's not all that surprising based on what is known about the human brain. According to psychologists at the Cleveland Clinic, shopping releases feel-good hormones in your brain like serotonin and dopamine. This is why it can feel so good to buy yourself a present, especially if you've been down in the dumps.

The next time you want to make a big purchase, take a cooling off period, even if it's just 24 hours. It's highly likely that the product will seem significantly less alluring than it did when you first laid eyes on it. If it still draws your interest, then maybe it's something you really want after all.

Is social media influencing you to spend more?

Social media can be an excellent tool for discovering products and services you love, but it's worth being mindful of how it might be influencing your spending. Social media influencers make a living by promoting products, getting paid by companies to influence you to buy something. They often partner with brands to share products they love, showcasing not just the item itself, but the lifestyle that comes with it. The idea is that these products might help you feel happier, healthier, or more aligned with your personal goals.

This kind of lifestyle marketing isn't new. You can see it in movies, TV shows, and celebrity product endorsements. What's different now is how seamlessly this marketing is woven into the social media experience. Many platforms have made shopping incredibly convenient, allowing you to make purchases without even leaving the app!

The good news is you don't need to make any dramatic changes. Simply staying aware of these influences while you scroll can make a big difference. Consider taking occasional breaks from social media when it feels right for you, as this can help you maintain a healthy relationship with both technology and spending.

The key is finding what works best for you and your lifestyle. Being mindful doesn't mean missing out on things you genuinely want or need; it just means making more intentional choices about what you allow into your life.

Give yourself a "fun money" budget and stick to it

One way to have your cake and eat it too when it comes to buying things that you don't really need is by giving yourself a "fun money" budget. This is the money that you can afford to part with each month after you've fulfilled all of your other financial obligations, including putting money into savings and budgeting for gas and groceries.

This is a great way to enjoy yourself while sticking to your financial goals. This money is yours to do with as you please, but once you've spent that budget for the month, it's important that you stay true to the promise you've made yourself to not make any more frivolous purchases until the beginning of the next month. Not only will this allow you to enjoy some shopping here and there, but if you stick to your budget, you'll be surprised how much better you feel overall. Staying true to a commitment you've made to yourself feels good, and shopping is way more enjoyable when the little voice in the back of your head isn't nagging you about a regretful impulse buy.

When it comes to the items you do need

Not every large purchase is an impulse buy. There will be times you truly need an item and need to find a way to make it work within your budget. This can be a tricky situation, but here are some smart tips to keep in mind.

Exercise caution when it comes to credit and loans

When you need to make a large purchase, watch out for steep interest rates and credit terms. It’s not uncommon for consumers to be duped into predatory loans, often in auto sales — lenders know their customers are in such urgent need of a vehicle that they will agree to terms that most financial advisors would consider unfavorable.

Not every large purchase made on credit is inherently bad. In fact, taking out a personal loan can actually be positive for your credit score by expanding the types of credit you're utilizing, which can help to raise your score. A loan or credit card with reasonable interest rates can be a fine way to finance a large purchase, provided that you're confident you can make the monthly payments.

However, if you suspect a lender might be predatory, don't let desperation cloud your judgment. These loans can burden people for years. This is especially true of payday loans; while financial products serve different purposes, payday loans typically offer very few benefits while carrying significant drawbacks.

Thrifting can help you save big money on big purchases

Sometimes you might have a genuine need for an item, but you find yourself drawn to the more elaborate version of something when the basic version would do just fine. For example, if you have to buy a new laptop for work or school, you might be convinced you need the latest sleek iteration, when the refurbished, more budget-friendly version would serve your purposes just as well. This is also true of vehicles; if a less expensive model would enable you to pay off your auto loan faster, isn't that more fulfilling than what other people think of your car?

The next time you need to make a large purchase, shop around. In this consumer-driven world, you'd be surprised how much unwanted stuff is floating around. If you need a kitchen table for your apartment, check Facebook Marketplace or the thrift stores. If you need a tech item, shop the refurbished options.

The goal? Focus on thoughtful shopping over impulse buying

Whether you're shopping for a short-term want or for that long-term need, the goal is to make your shopping a thoughtful experience rather than an impulsive one. It's not even just about the money you'll save when you shop smarter — it's about the satisfaction you'll feel in knowing that you can trust yourself when it comes to making financial decisions.