Hey there, first of all allow us to clarify a few things. First of all Cherokee is an awsome offroad vehicle. Second the Cherokee is a Unibody vehicle, meaning the frame and the body are combined as one giving it added stranth and flexability. Because of this a body lift is not possible but small suspecsion lifts are available for very reasonable prices. A 2" lift will not clear the way for 31's without major rubbing. If you want bigger than stock but smaller than 33's, go for a 3" lift. You can get 3" lift pretty reasonably priced, won't get into makes and prices thats a whole different thread. With a 3" lift and different rims you can run 31's with minimul to no rubbing. For a little more $$ you can pick up a 4.5" lift and can run 32's and possibly 33's with little rubbing. Considering the year of your XJ when you start to lift you may need to consider drive line vibrations. You may want to consider a Slip Yoke Eliminator and New shaft. This will eliminate any drive line vibes that may occur, I say MAY because EVERY XJ IS DIFFERENT! I have a 96 and with a TCase drop I have no vibes at 4" Some guys have uncontrollable vibes a 2". I would concintrate on these items first in this order, then is money is just "laying around" never, there is much other to consider.
1. PROTECTION, PROTECTION, PROTECTION
Rocker Rails, Skid Plates all around, stock skids are a start
Along with full protection be sure to have front and rear
recovery points. front hook setups and rear slide hitch most
common, but if you get after market bumpers get ones with
recover points built in
2. Lift, get to your desired lift height, but leave your options
open " you will want to go higher later
3. Tires and RIMS, go hand and hand with lift
4. Bumpers, kinda falls into protection but you can live without
5. from here I'm torn, but either a winch to go with the Bumper or
at least a rear locker if not both front and rear
Now this is all in my opinian and definatly open to discussion as there are guys here alot more experianced than I am. Keep you eyes on the page and ask questions, The knoledges pours from these pages. This is the smartest most helpful bunch of off roading guys and girls I HAVE EVER SEEN!!!!!!
Good Luck