How to Budget for Large Expenses

Our monthly budgets are great for helping us stay on track with anticipated expenses. But when it comes to major spending that doesn’t fit any of our established categories, they’re not as helpful. Do you need help trying to figure out how you’re going to pay for major expenses in the future? If so, here are a few tips that will help you learn how to budget for large expenses more effectively.

Develop a plan that helps you save towards your big-ticket item.


A month-to-month budget allows us to allocate our income towards the items that matter most, like bills and groceries. While we may have a portion of our income set aside for entertainment and the like, the issue is that many more expensive items will generally exceed our spending capacity. The key to budgeting for bigger expenses is an effective way is to come up with a plan of action that helps you save for your big-ticket item.

Let’s say, for example, that you’ve had your eye set on pre-owned Hublot watches. While the fine craftsmanship and the classic fusion of elements like platinum or titanium of Hublot luxury watches may appeal to you, the Hublot timepiece selection may come with price tags that are a bit beyond your reach at the moment. Fortunately, you can purchase Hublot brand watches at affordable prices by making a plan to set aside a set amount of money each month until you reach your savings goal. Then, a luxury watch from this intriguing watch brand that actively defies traditional watchmakers can be all yours.

Look for resources that will make your target expense more affordable.

Using certain resources, like credit cards, is generally a great way to damage your credit and potentially put yourself in the red if you find yourself unable to pay your debt as you anticipated. This is why it’s often better to save towards something rather than to go into debt trying to pay for it. That being said, there may be some instances wherein there’s no easy way to pay for something or you simply don’t have the extra time to save. When this happens, you will need to look for tools that can make your desired purchase more affordable.

One excellent example of this is home renovations. Renovations are notoriously costly, but there are resources that can make these necessary changes more affordable. If you don’t have the money right now, you can always choose to turn to home improvement loans or home equity lines of credit. Then, you just have to make monthly repayments, which would be very similar to saving up the money over time. Keep, in mind, however, that this should only be something you’re considering if you’re certain you can pay off your debt and you have something urgent that needs to be taken care of.

If you’re not looking to get a loan at this point in time, don’t worry! There are also plenty of DIY home renovations that you can take on yourself. Whether that’s painting your indoor living spaces or the exterior of your house (or putting up wallpaper), installing new tile, shelves, appliances, or cabinets throughout your entire kitchen, or doing a deep clean of areas like the garage for any mold, there are plenty of great DIY projects you can pursue as a homeowner that won’t break the bank. If you’re not looking to spend money to hire contractors and enter into loan agreements, look into repairing and replacing things through DIY methods instead. Just be careful that you don’t damage important items like plumbing or light fixtures along the way.

Continue actively saving for unexpected expenses.


When you pay for a major expense the first time, you begin to realize how important it is to have emergency funds at your disposal. Use this purchase as a reminder to set aside “just-in-case” funds so that you always have something to dip into if you need it. Otherwise, you may end up constantly behind as you try to afford stuff that you want or need.

Budgeting is a skill that comes with time, especially in regards to budgeting for major expenses in your life. If you anticipate wanting or needing to buy something major in the future, use the tips above to prepare ahead and avoid potential pitfalls when it comes time to pay for this expense.

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