Big-ticket items (BTIs) are major purchases like houses or vacations that demand serious financial commitment. With the rising cost of living, more people carefully weigh each expense to make ends meet. They also save up for BTIs that would improve their quality of life now or in the future. While these items are highly personal, some big-ticket items are worth the extra money.
1. Your Home
Buying a house is among the most common big-ticket items people save up for or dream about. While the market conditions fluctuate and sometimes make renting cheaper than owning a house, becoming a homeowner has three main benefits.
First, you won’t be beholden to the landlord whenever your lease is up for renewal. Second, you can fix home repairs immediately. Third, you build home equity over time, which turns your home into a valuable asset even if you’re still paying your mortgage.
2. A Safe and Reliable Car
A car is another big-ticket item that people do not purchase every year. People research the type, brand, model, and features before picking a car. It doesn’t matter if you bought new or used or if the customer paid in cash or financed it. Owning a reliable car means you can avoid the dangers of commute and travel to places more freely.
3. High-Quality Mattress
The American College of Cardiology (ACC) published research claiming that poor sleep patterns are linked to about 8% of deaths. It also stated that good quality sleep supports heart health and adds years to your life. Ideally, people should spend an average of 8 hours a day—or about one-third of their lifetime—sleeping. If you’re not meeting your recommended sleep hours, it just makes sense to invest in a high-quality mattress to help improve sleep quality.
4. Comprehensive Health Insurance
It is currently up to you to include comprehensive health insurance. Cutting corners in anything related to your and your family’s health can pose serious risks, not only to your lives but also to your finances. Investing in health insurance would give you peace of mind that you have a plan in case of unexpected medical expenses.
5. Your Education
Investing in your education could pay off big time. Education could refer to college, postgraduate degrees, or even short courses that would earn you technical skills and additional expertise. Every training or certification you gain could lead to an increase in salary at your current job or more career opportunities. Education is expensive and could result in student loan debt. As such, compare public colleges and their offered programs to find the one that offers the most value for your money.
6. Large-Scale Home Renovations
Large-scale home renovations are big expenses few homeowners love spending on. The good news is that most improvements you make to your home, from replacing old carpets to adding a deck, could increase your property’s value. That is particularly true for renovations done before putting your home for sale.
7. Vacations
Studies have shown that vacations can reduce chronic stress, lower blood pressure, and improve mental health. Yes, traveling to another state or country requires a significant budget and careful planning. However, if such vacations can make your body, mind, and soul happy, it’s an expense worth the extra money.
8. Solar Panels and Solar-Powered Appliances
If your electric bill outweighs all other utilities, transitioning to solar power might offer a solution with a better return on your investment. While setting up solar panels requires an upfront investment of thousands of dollars, it could significantly reduce bills and save money in the long run.
Today, solar technology extends beyond solar panels on your roof. You can now find solar-powered appliances like freezers, water heaters, ovens, fans, fridges, security cameras, and more.
9. Energy-Efficient Kitchen Appliances
Energy-efficient kitchen appliances make excellent purchases for those adopting a greener lifestyle. While these appliances may have a higher initial cost, they are cost-effective in the long run. Opt for ENERGY STAR-certified refrigerators, microwaves, and other major kitchen appliances. Doing so lowers your electric bill and reduces overall living expenses.
10. Front-Loading Washing Machine
Regular washing machines cost about $300, but their front-loading counterparts that start at $1,000 can be considered a big ticket item. It may not be an obvious means of saving money, but front-loading washing machines use less water and energy, resulting in lower utility bills.
11. Quality Furniture
Constantly replacing furniture in your home can strain your finances and leave a significant dent. Rather than wasting money on furniture that quickly wears out, consider investing in pieces built to last. For example, sturdy hardwood tables and premium leather sofas serve their purpose flawlessly and retain their value over time.
12. Your Own Computer
A laptop or desktop computer with the latest specs is worth the extra money, as it could pave the way for more income streams. The work-from-home lifestyle can be an excellent solution for anyone who has been spending less and trying money-saving strategies but still finds it challenging to get out of debt. You can make money online by blogging or freelancing with a reliable computer for years.
13. Mobile Phone With a Good Camera and Features
With technology constantly evolving, mobile phones are among the most common big-ticket items people buy today. It’s hard to keep up with the latest smartphones, but if you use your phone for work or on apps to make money, consider upgrading your devices to get the most value.
14. A Quality Headset
If you work on a computer, a quality headset is a big-ticket item you should consider. There are hundreds of low-cost headset options in the market. Skip those. Pick a headset with comfortable padding, superior sound quality, and lightweight material. High-quality headsets promote better posture, protect hearing, and reduce strain during prolonged use.
15. Home Gym Equipment
Gym memberships and rarely used subscriptions are some of the most recommended things to cut when reducing monthly spending. If working out is a non-negotiable part of your daily routine, you could invest in some at-home gym equipment. Down the line, you will save money by not having to pay for the gym membership and working out at home.
16. Home Weather Station
It’s uncommon for people to list a home weather station. However, a system that provides real-time weather data would benefit gardeners, farmers, outdoor enthusiasts, and homeowners in areas where weather conditions can get disastrous.
By watching the weather and being ready for surprises, you can simultaneously ensure your family’s safety and reduce energy costs. A home weather station is a smart investment worth your extra money.
17. Work Wardrobe and Shoes
The psychology of dressing well is simple: if you think you look good wearing something, you exude confidence and vibrate positive energy. You don’t have to spend all your money on clothes every payday, but everyone should create a budget for work wardrobe and shoes.
Pick clothing that you can wear interchangeably for a polished and professional look. Brand shouldn’t matter. Instead, get a tailor to custom-fit a blazer or pair of pants you like. When it comes to shoes, sticking to trusted brands is wise. Ideally, invest in a pair for each occasion—casual wear, formal events, and fitness activities.
18. Equipment for Your Hobby
Hobbyists know that some of their most prized possessions used for their craft can be expensive, but items like these are worth the extra money. Buying a 3D printer or an industrial table saw is an excellent example. These big-ticket items cost thousands of dollars, but if used well, they can bring unlimited income to your household.
19. High-End Musical Instruments
Pianos, guitars, or drum sets can be expensive items that aren’t just investing in your happiness. Playing a musical instrument is one of the best ways to keep your brain healthy. A study by the International Journal of Geriatric Psychiatry suggests that playing a musical instrument could help people above 40 solve complex tasks and sustain good memory.
20. Massage Chair
With prices of massage chairs ranging from $1,000 to $15,000, prioritizing your physical and mental well-being can have a significant price tag. Despite the initial investment, a massage chair can be a cost-effective alternative to physiotherapy.
Not only do you avoid costly therapy fees, but investing in a quality massage chair could also improve circulation, relax muscles, improve posture, reduce stress, and reduce pain in the neck, shoulder, and lower back.
21. Jewelry
Investing in jewelry may not be for everyone, but it is like a fine art portfolio with a potential for capital appreciation. If you need an emergency fund in the future and haven’t saved enough cash, you can sell gold or pawn jewelry as a backup.
22. Backyard Grill
Buying a grill could set you back $500 to $6,000, depending on the type, brand, durability, heat output, and other features, but a high-quality grill will serve you well for years. Like other big-ticket items focusing on your happiness, grilling for cookout parties can build stronger relationships and increase dopamine levels. You can also save a lot of money buying groceries and spending less money eating out.
23. Electric Toothbrush
You don’t have to buy an electric toothbrush monthly, but dentists recommend spending extra money on sonic or electric toothbrushes. Spending on dental care can be expensive, but with good oral hygiene and an electric toothbrush, removing plaque and bacteria from teeth could be done even at home.
24. Outsourcing Chores
In some cases, babysitting, running to the grocery store, cleaning the house, walking the dog, painting the house, or doing other chores yourself isn’t a good way to cut back on spending. If you can afford it, you could save a lot of time by outsourcing tasks you don’t enjoy doing to others. Investing in time-saving services will free you up to do other money-making tasks.
25. Estate Planning
If you lived frugally, saving lots of money, practicing smart spending habits, and keeping yourself free from credit card debt, you might be financially ready to invest in estate planning. Proper estate planning ensures you pass down the assets and saved money to your loved ones and protects them from shouldering huge taxes and any other problems they face when you’re gone.
While hiring a local financial advisor near you may incur expenses, it’s the most effective approach to managing the legal intricacies of estate planning.
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