Thinking about a new car, a home project, or the latest gadget can make your brain go into overdrive. Big expenses feel heavy, but don’t have to be scary.

It’s tempting to just swipe a credit card. Easy, convenient, feels like the only option. But if you can’t pay it off quickly, interest piles up and balances grow. Before you know it, you’re paying way more than expected. Also, using too much of your available credit - over about 30% can hurt your score. Using a card is fine. Just have a plan to pay it off.

Start with defining your big purchase. Write down what’s coming up. Buying a car, a vacation, or a new laptop. Or it can be life events like weddings, moving to a new home, or having a baby.

Be specific with your goal. Instead of “I need to save for a car,” try “I want to save $6,000 in the next year for a down payment.” Break it into monthly chunks. Decide what small changes you’re willing to make—maybe fewer takeout meals or skipping some shopping for a while. Connecting your goal to something meaningful, like reliable transportation, makes it easier to stick with.

Next it's a good idea to set a timeline. For example, if you’re planning to buy a $2,500 new laptop in a year, you’ll need to save about $210 monthly to meet that goal.

Think of it like a plan for your money to work for you. Cover essentials first, keep saving if you can, and use simple rules, like the 50/20/30 method, to stay balanced. It suggests putting 50% of your income toward your needs, like groceries, gas, and rent or housing. About 30% can go toward your wants, including shopping, dining out, and hobbies. The remaining 20% should be set aside for savings, such as emergency expenses, investments, and retirement.

Major purchases can threaten your financial goals if you do not prioritize appropriately. Your initial focus should be on emergency funds and retirement funds, which are high priorities that you don’t want to compromise for a major purchase.