7 Australian creatives on how they budgeted for their biggest purchases

“A new dress or a new pair of shoes will have short term pleasure, whereas investing in a property, a sturdy new car, or a new work computer will pay off in the long run.”

I don’t know what your relationship with money is like, but my bank account seems like an impractical sieve: the holes are large enough for buckets of coins and wads of cash to simply disappear through.

All this talk of the rising cost of living and interest rates has me once again (hoping) to commit to a real strategy, particularly when accounting for life’s big purchases – both the fun and the necessary ones.

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The world is a blur of financial options, from sticking to a fierce savings strategy, investing, starting a side hustle or taking out a personal loan.

Much like my obsession with peeking into the fridges and bathroom cabinets of those I admire, I wanted to find out how they budget for these big buys. Get the Excel spreadsheet ready for this one.

Isabelle Valdez*, business owner

The big purchases: A car

My biggest recent purchase was a new car.

Approach to buying: Viewing everything as an investment

I’m fairly impulsive because most of my purchases relate to work, and I generally see them as investments that I will be able to pay off. For me, I needed a car for work. So it was an investment and a business purchase. I went for [a new car] as I thought it would be the least risk-averse.

In an unlucky situation, I actually ended up buying a lemon (very long story). Make sure you read all contracts and the fine print before you buy anything!! And educate yourself on consumer law.

Budgeting strategies: Reach out to a broker

I have a full-time accountant who I pay weekly and is across all of my business finances. She was able to refer me to a broker who I went through for my car loan. Having an accountant/people you trust who can refer you to other services is really handy!

It also makes the process a bit more seamless as an accountant is able to provide income reports and documentation required when it comes time to compare available personal loans.

Alex Breitfuss, letterpress printer and founder of Terrace Press

The big purchases: Designer bags

Handbags are always my biggest investment and money that I spend. I find the per wear cost ratio good, so I can justify spending the money. I’m always saving for them. [Right now] I have my eye on a vintage Chanel double flap.

Approach to buying: Scouting pre-loved pieces

I’ve bought some used pieces at markets like Hills High End and am a part of the resale page on Facebook for a brand that I love. I find I can wear items a few times and sell them for a similar retail price or pick up older prints or styles that I missed out on when they were released.

Budgeting strategies: Depositing into an investor account

I follow some vintage pages to get more information about what pieces to invest in. I try to put any leftover money from my account each week into an investor account (I use Pearler), and from there, I build it up till I can afford a piece. If I am really in need of something, I’ll also try to do a little extra transfer each week where possible.

Lily Bennett, artist

The big purchases: Art supplies and a vehicle

My biggest purchase was my beautiful ’80s series Landcruiser, which I absolutely love and needed for transporting art pieces, art supplies etc. My other biggest purchases would be canvases and art supplies. I also allow myself, after selling larger pieces, a treasure of sorts – be it a new pair of well-made winter boots or a new artwork (I like to support the art world as much as it supports me).

Approach to buying: Writing lists and asking questions

I can be quite impulsive, so writing lists of what I need/want is important and [it’s] also good practice to question whether I really need the item, how long it will last, what impact it will have on the earth in the future etc.

Budgeting strategies: Avoiding impulsive spending and prioritising saving

I think that it’s important to remember, ‘save it, you have it, spend it, it’s gone’. If you impulse buy lots of small insignificant items that you’ll forget over time, you won’t have the funds available to spend on something more long term and important.

It’s important to consider and remember [that] a new dress or a new pair of shoes will have short term pleasure, whereas investing in a property, a sturdy new car, or a new work computer will pay off in the long run.

Elizabeth McPherson, vintage collector and founder of PPeached

The big purchases: Designer accessories and a holiday

I’ll never forget saving up for a vintage Chanel bag when I was at university. I have a true love for shoes and have The Row boots on hold on The Real Real. Also, saving for a nice little holiday in Mexico this June.

Approach to buying: Research, research, research

I don’t like to buy into trends, however, I find as soon as I’m hooked on a piece, it sells out everywhere! I will see an item online/on Instagram and will continue to research and troll the internet for a nice cheaper price.

Budgeting strategies: Creating accounts you can’t easily access

I like to put away 40 per cent of my pay into savings, and a nice shoe fund – direct debit into my savings accounts helps. I have a few accounts that I don’t have access to. This always helps as I don’t see the money as soon as it’s in savings. Budget out the week and month and stick to it!

Alanna Camilleri, founder of Selfe Studios

The big purchases: Investing in quality

I follow the same core foundations of Selfe Studios: a) to invest in pieces for now and forever, and b) to invest in quality over quantity. These values are important to me, and therefore most of the time, purchases come with a medium-high price tag – from clothing, accessories, household furniture and appliances and now baby products.

Approach to buying: Mulling it over

I’m a thinker, never impulsive. Although I usually know when I see something that it is what I want, I walk away and take my time. I’ll usually get a few opinions from family and friends, but still, deep down, I know I’ve already made up my mind.

Budgeting strategies: Saving up for the big purchases

Purchases are made with savings… As my husband always says “Rome wasn’t built in a day”. Big purchases take time, and if you tackle [them] in stages, it is far more achievable and eliminates any stress.

Gaby Dillon, creative and owner of Dillon Store

The big purchases: A new car and laptop

Not very exciting, but my biggest would be a secondhand Subaru with my partner Frenchy. We had a lovely old Landcruiser before, but with the kids, we went for a pretty daggy, everyday car. I’m saving up for a new laptop! These days big purchases are few and far between.

Approach to buying: Shopping slow

My approach to shopping for these items is definitely slower. I try to set aside a little money each week for them. What really trips me up, and where I need some help, is splurging on garments/shoes. I just love them. And I impulsively buy secondhand boots.

I wish I was taught budgeting in school. I think it would be such a valuable subject. I had no concept of saving, no real concept of just how much things are worth and how hard you have to work for your earnings. Working for myself full time has been a great education for me and a reality check in regards to budgeting!

Budgeting strategies: Putting aside money each week

I’m trying to regularly set aside money from my weekly income. Money is also kept aside to reinvest back into my business. Before I got my shit together, I’d just work for intense periods of time in a few jobs, save up a bunch of money, and then blow it all on a purchase or trip.

It was fun at the time but didn’t set me up in any way for the future. I still splurge and probably always will, but there are certain boundaries now that make me feel more at ease.

Holly Boorman, founder of HLL Creative

The big purchases: Property, business and designer accessories

My biggest investment would have to be my property in Victoria and my business HLL Creative. As well as this, I tend to invest in experiences, such as travelling for work. And lastly, my guilty pleasure is designer handbags, shoes and luxury jewellery…. naughty Holly.

Approach to buying: Thinking on it

I’ll probably sit on this [purchase decision] for a while and eventually impulsively make the purchase or just move on.

Budgeting strategies: Saving as much as you can and living within your means

I save, save, save and only spend money where I am sure it will benefit my brand and my business. I’ve always been someone to put aside 10 to 20 per cent of what my business makes and another per cent for travel/business investments. I also live a lifestyle that I can afford and never push those boundaries.

*Name has been changed

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