Considering a splurge? Here’s how to plan for a major purchase

You may help keep your family’s financial future on track while also enjoying the benefits of a big purchase. With the proper planning, a new car, an in-ground pool, or an overseas family vacation may become a reality.

Review your finances

Before deciding to make a major expense, it’s a good idea to make sure you have your emergency fund and long­-term savings plan in place.

  • Make sure your emergency fund may cover 3 to 6 months of living expenses.
  • Stay on track with your retirement savings, or if you’re retired, be sure you may meet your ongoing expenses.

Anything left over may go toward your splurge purchase.

Prioritize your:

Emergency fund

Retirement savings

Do some math

Determine if you may pay for your big purchase entirely from savings or if you’ll need financing. For some purchases, you may find the best solution is a combination of savings and financing. If you do plan to finance some of your purchase, keep in mind that today’s higher interest rates could have a greater impact on the amount you ultimately pay.

The average cost to install an in-ground poolFootnote 1 $58,846 Approximate monthly savings to cover that expense*

1 year: $4,903 a month. 3 years: $1,634 a month. 5 years: $981 a month. *Doesn't account for potential interest.

Be strategic in how you save

Use automatic transfersFootnote 2— such as moving a set dollar amount from checking to savings every two weeks — to stay consistent as you save.

As you consider where to save your money for this purchase, remember that today’s higher interest rates may create an opportunity to grow those savings faster.


Your bank may offer digital tools to help you set savings goals and easily track your progress.

Use financing wisely

Think strategically before you borrow. If you finance your splurge purchase, you may pay more over the long run — especially with today’s higher interest rates.

But there are options that may make a difference. For instance, some credit cards offer perks that may help offset the interest.

Consider connecting with a banker to discover your financing options.

Are you staying fiscally fit? See if you’re on the right track.Learn more