2 is correct, and based on 1 your problem is the 無理. 無理をする is something you can do but which would be difficult (even without the ことはない, you could still buy the bag but you'd have to eat ramen for the rest of the month or something to make ends meet).
"It's not that I can't afford the bag, but (it's still kinda expensive so) I'll pass".
Interestingly, Kenkyūsha has a definition specifically for the financial case:
5 〔金銭的負担の大きいこと〕
▶ちょっと無理してこのダイヤ買っちゃった. I knew I couldn't afford it, but I bought this diamond.
「誕生日にはフランス料理でも食べにいくか」「あんまり無理しなくてもいいのよ. 何でもいいわ」 "For your birthday, would you like to go out for French food?"―"You don't have to go overboard for the occasion. Anything's OK."
▶私の資力から言って住宅購入にはちょっと無理があった. Getting a house was a strain on my resources.
▶〔購入する時など〕 そう無理をするな. Spare your money.
かなり無理をして新車を買った. I broke the bank buying this new car.
"It's not that I can't afford the bag, but (it's still kinda expensive so) I'll pass".
Interestingly, Kenkyūsha has a definition specifically for the financial case:
5 〔金銭的負担の大きいこと〕
▶ちょっと無理してこのダイヤ買っちゃった. I knew I couldn't afford it, but I bought this diamond.
「誕生日にはフランス料理でも食べにいくか」「あんまり無理しなくてもいいのよ. 何でもいいわ」 "For your birthday, would you like to go out for French food?"―"You don't have to go overboard for the occasion. Anything's OK."
▶私の資力から言って住宅購入にはちょっと無理があった. Getting a house was a strain on my resources.
▶〔購入する時など〕 そう無理をするな. Spare your money.
かなり無理をして新車を買った. I broke the bank buying this new car.
Edited: 2016-05-15, 12:00 pm