5 big life purchases and how to budget for them

Estimated reading time
 5 min

Learn all about

• Going on an overseas or local adventure without draining your savings
• Cost considerations of adding a furry (or feathery or scaly) friend to your family
• What to think about when purchasing a new set of wheels
• Planning for a wedding without breaking the bank
• Budgeting and buying your first home

No matter where you are in the world or who you are, life comes with big spends.

They can be huge expenses that can change your life, like paying for a wedding or buying a home. Or maybe they’re the purchases you make once in a blue moon such as buying a new car or getting a pet. The big things in life look different to everyone but no matter what you’ve got planned the best thing you can do is to have a plan.

While the current cost of living situation might make these big buys feel out of reach, there are different ways you can budget or hack your way to make these life goals a reality. Want to know how? Let’s dive right in.

1. Budget before you globe-trot

You’ve picked a country, pulled out your favourite suitcase and are ready to go on a global adventure. Great! But are you financially ready for your big trip?

Planning for an overseas holiday can be an exciting time. However, there are a few things you’ll need to budget for in the lead-up to take-off.

So how do you budget for a holiday? Well, you need to factor in the costs of things like a visa, flights and travel, accommodation, food, and an emergency fund. Doing the prep work now – and having a good budget – means you can immerse yourself in your trip and enjoy it without worrying about your bank balance.

How to budget for overseas travel

Here are some simple money-saving hacks you can follow when planning for that big adventure:

• Travel in the off-season, if you can, and use a flight comparison website to compare deals and get the best bang for your buck.
• Find free things to do in the country you’re travelling to. Chances are there’s probably a festival or street event you can go to without paying a cent.
• Investigate travel passes for public transport. Explore the country you’re in like a local and save money while you’re at it.

Read more about budgeting for your holiday

  Hot tip:

Set a savings goal to help you work towards a specific amount for your holiday. Staying on track with your money goals and having a good time at the end? That’s what we like!

2. What to think about when adding a pet to your household

Whether it’s furry, feathery, scaly or comes with a shell, adding a pet to your family can be a fun time. They can make a positive difference in your life and provide companionship and love when you least expect it. Plus, they’re cute to look at. Yep, even the reptiles and amphibians.

But getting a pet is a big financial commitment. While the upfront costs might not seem like much in the grand scheme of things, the ongoing costs of owning a pet can make this a big life purchase. A good budget, however, can help you navigate one-off and ongoing expenses that come with owning a pet.

So what do you need to budget for when you buy a pet? Here’s a quick breakdown of the different expenses you can include in your budget:

• Buying or adopting the animal.
• Vet visits and procedures the animal might need. For example, getting a dog or cat desexed.
• Pet healthcare products and insurance.
• Daily essentials like food, bowls, a kennel or tank, and toys.
• Council registration or any other licenses you may need to keep the pet at your home.

Read more about adding a pet to your household

3. Be financially ready to hit the road

Buying a car can make cruising around town easier. You get a set of keys, a cool set of wheels, and you can add as many bobbleheads as you like to the dashboard.

Like any big purchase, there are lots of different factors you’ll need to consider before you take the plunge:

• Think about the different types of cars, each with their pros, cons and costs. For example, hybrid cars might be pricier upfront but could save you money in the future.
• One-off and ongoing costs, like stamp duty and fuel, are a must-have in your budget. This can help you feel prepared when it comes time to buying and using your vehicle.
• The different options for financing your car – you can use your hard-earned savings, take out a personal loan or maybe sign a lease agreement. Make sure you do your research to find the right option for you!

At the end of the day, being smart about your savings, having the right mindset and creating a detailed budget can go a long way when it comes to buying a car.

Read more about budgeting for a car

4. Say ‘I do’ without worrying about your finances

Marrying the love of your life is a huge step to take in your relationship. You get to celebrate your love and make a life-long commitment to each other. But after you’ve proposed or said yes (or both!), how much do you need to save for your wedding?

The average Australian wedding costs around $36,000^disclaimer. And while the amount will depend on you and your partner’s preferred style of wedding, it’s important that you make a wedding budget (ideally together) that captures what you both want from the big day.

Whether it’s an extravagant affair or a lowkey wedding on a budget, planning for your nuptials and understanding the different costs involved, like hiring a celebrant or paying for the wedding outfits can help you get married without feeling the financial pinch.

Read more about saying ‘I do’ without breaking the bank

5. Hop on the property ladder with your first home

Buying your first home is one of the biggest purchases you can make in life. But it’s not just a case of saving that big deposit and buying décor – there are upfront and ongoing costs you’ll need to consider. Think stamp duty, any inspections you need to make, your mortgage and more.

A good budget that factors in these costs can be a game changer. It can help you map out what your finances will look like when home loan repayments and other home-owning costs come into the picture.