If you’re planning a major purchase in 2024, it’s much smarter if you budget for it and pay for it in cash instead of putting it on plastic. When you charge something on your credit card, there’s always a chance that you won’t make the headway on your newly incurred debt like you thought you would. In other words, you might end up caught in a perpetual cycle of interest if you can only afford to make minimum payments on your debt.
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Here are seven big buys you should consider budgeting for in 2024.
Major Appliances
Whether you’re planning to buy a new refrigerator, range or a washer and dryer set, the price tag could easily be $1,000 or more. Decide how long you can wait before you buy the new appliance, and then save accordingly. For example, if you want to buy a new refrigerator within the next 12 months and it will cost $1,500, set aside $125-$150 per month until you have the money saved to buy it.
Sometimes, you need an appliance ASAP and can’t wait to budget the money for it. To avoid this situation, you might want to look into purchasing a home warranty, which will often cover the cost of replacement in the event it cannot be repaired.
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Milestone Jewelry
Is there a future engagement or anniversary that you need to buy jewelry for? These milestone jewelry purchases can cost thousands, so start budgeting for it now.
According to The Knot’s 2023 Jewelry and Engagement Study, the average cost of an engagement ring is approximately $5,500, but over half of respondents spend between $1,000-$4,000. Marcilla Bailey, jeweler, said you should plan to budget around $1,000 for a wedding band, as reported by Brides magazine.
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Home Gym
If you’re tired of waiting in line to use the machines at your local gym, a home gym could be a good investment. According to HomeAdvisor, the average cost of a home gym is $2,000.
If you can figure out how to exercise at home for a while using dumbbells, an exercise mat and resistance bands, that will give you time to save up for your own gym. Cancel your gym membership and put the monthly membership fee toward the cost of the home gym you want. Budget additional funds each month to save even faster.
Mattress
Sooner or later, everyone needs a new mattress. If you’re planning to buy a luxury model, you could spend $1,200 to $3,000 or more, depending on the size, brand and materials you choose. And because it’s unlikely that you have to run out and purchase a new mattress tomorrow, this is a big buy you can definitely make time to budget for.
New Furniture
On the low end, furnishings for a three-bedroom house could cost around $6,000, according to HomeAdvisor. And living room furnishings alone could cost $1,500 or more, depending on what items you buy and whether you choose low-end, mid-range or high-end products.
Budget for furniture way ahead of time, so you can pay in full when you get ready to shop.
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Smartphone or Smartwatch
The average cost of a smartphone in the U.S. for 2024 is $940, according to data from Statista. Smartwatches typically cost between $200-$1,000, depending on brand, according to CNET. If you’re in the market for either gadget, save up for the purchase price by budgeting a set amount each month. You’ll have enough saved before you know it.
If you tend to damage or lose smartphones or smartwatches, consider insuring these items for full replacement value or for the cost of an affordable deductible. This will result in much less expense for you in the long run.
Vacation
The average cost for a vacation for two people costs around $3,838, according to Pacaso. Rather than put close to $4,000 on your credit card to pay for your getaway — and pay interest on top — budget for it. Simply divide the cost of your vacations by the number of the months you have before your departure date and save accordingly.
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This article originally appeared on GOBankingRates.com: 7 Big Buys To Budget for in 2024