Dream Purchases: 9 Vital and Luxurious Things To Save Up For

Since nine in ten Americans are stressed about their finances, you likely have some money-related problems in your life. Big purchases may be frequently put on the back burner in favor of daily expenses.

While this is understandable, there are some things to save up for that you should prioritize, too. Read on to learn about both vital and luxury expenses that you should set aside funds for.

 

1. A Home of Your Own

 

While people prioritize big purchases differently, a home is pretty high on most people’s lists. This makes sense because your own home is something that you can live in for a lifetime.

After you pay off your mortgage, you’ll never need to worry about housing insecurity or displacement. This can afford you peace of mind since you’ll know that you never need to worry about relocation (unless you want to).

Owning property is also a smart financial choice because it appreciates over time. The median price of a home was only $172,900 in 2000; today, it’s $417,700. If you do ever want to sell your property and move to a new location, you’ll likely turn a hefty profit.

Plus, you get equity ownership with mortgage payments that you don’t when you pay rent. While you’d never see rent money again, the money you put toward your mortgage goes toward home ownership that you benefit from.

 

2. Dream Home Features

 

If you already own property and want to invest in some luxury spending, turning your humble abode into your dream house is a great way to go. Get some renovations and upgrades that spruce up your space and make it your own.

Floor-to-ceiling windows are awesome for those who want natural light, and open floor plans and annexes are great expansion projects to consider. You also can add features like pools, patios, decks, outdoor kitchens, sunrooms, indoor exercise areas, and guest bedrooms.

 

3. Retirement

 

The average American retires at 61 years old, which means that you’ll have a few decades after you stop working to pursue the life of your dreams. Since you won’t be working, though, you’ll need to have money put aside for both daily necessities and golden-year memories.

That’s why you need to regularly set aside some cash for retirement. Create a 401K or Roth IRA plan and put money into it monthly. Remember that you’re saving for the future and will see that money again later when you most need it.

 

4. Travel

 

Whether you want to travel post-retirement or while you’re still young, vacations and getaways are some of the best things to save up for.

Travel isn’t just fun – it lets you meet new people, get in touch with other cultures, and expand your horizons. You’ll get to see historically significant sites and learn about the places and people you meet with tours and solo excursions.

But travel doesn’t come cheap, and you’ll need to set aside some money to live your dreams in a fiscally responsible way. Whether you consider this a vital or luxury expense is up to you, but it’s worth prioritizing either way.

 

5. Emergency Cash Reserves

 

It’s essential to set aside money regularly and put it in the bank for a rainy day. If you lose your job or get hit by a natural disaster, you’ll need some money to put food on the table or rebuild your daily life. Medical bills for both people and pets also pop up unexpectedly.

Having some money in reserve for emergencies can afford you peace of mind. You won’t need to contend with horrible surprises that put you in an impossible-to-manage financial situation.

 

6. Car Troubles

 

In addition to physical emergencies, you should have some money in a savings account to accommodate future car troubles.

The average cost of car ownership is about $10,728 annually, which is an all-time high. Unfortunately, Ubering everywhere is ridiculously expensive and many areas don’t have reliable public transit. Ditching the car and being left without a ride can put you in hot water at work or trap you at home during times of crisis.

Car funds can cover repairs, maintenance, or even a new vehicle if you save up enough.

 

7. Future Investments

 

Money tends to compound. This means that if you’re rich, you have the funds you need to make investments in real estate, stocks, bonds, precious metals, and more. These investments historically pay off, but you need the cash to purchase them upfront.

Many people consider market investments luxury spending. But it’s not really spending – it’s just a way for you to turn your pocket change into money that you can spend on other things.

Take out a little loan and invest it in a secure stock or tangible asset. You’ll thank yourself when you pay it back in full and have money to spare.

 

8. Education and Business

 

Those with jobs they love have both better lives and higher incomes. A college or post-graduate education is a big purchase, but it’s one that can vastly improve your quality of life. You’ll study something you love and get a degree that makes you more competitive in your field.

If you have entrepreneurial ambitions, you can allocate funds to start a business instead. Whether you want to sell homemade jewelry or start a software business that caters to corporations, you’ll need some cash to get off the ground.

Make a plan for how you can get to the future you crave and stick to it!

 

9. Nice Personal Items

 

While it may not be a top priority, luxury spending on items that make you feel good is always an awesome investment.

Luxury clothes, nice jewelry, rare books, and collectible items can make you feel as though you’re living the high life. It can boost serotonin levels and make you happy and fulfilled. Don’t write these purchases off as unnecessary – splurge a little sometimes!

 

Beyond Things to Save Up For

 

Now that you know some things to save up for to build a better life, it’s time to get started.

We’re committed to providing people with the personal loans they need not only to survive but also to thrive. Contact Money Ladder to learn more about what our services can do for you.