When people think about splurging, they imagine spending an
excessive amount of money on a luxury item or experience they didn’t
necessarily need. While this is the case for many people, others have figured
out how to make splurge purchases that are tactical, well-timed, and not
incredibly harmful to their bank
account. It seems counterintuitive, but it’s actually possible to
save while splurging.
If the temptation to splurge strikes while you’re out shopping,
consider buying in bulk. Maybe the thing that you’ve got your eye on is
something that you expect to keep buying throughout the year. If it’s a
non-perishable item, consider picking up many at the same time.
If there is a bulk
option, it will generally cost less per unit than if you paid for a
single item. This is a result of packaging costs. When manufacturers wrap items
for a bulk sale, the cost is comparatively less than for a single item.
Aim for Quality
Maybe you’re torn between a cheap and expensive version of a
similar product. Our instincts will tell us to take the deal and opt for the affordable
version, some applied logic might tell us otherwise.
While it might seem like a splurge purchase, choosing a
quality item can end up saving you money in the long run. Cheap items earn
their price because they are manufactured using parts that are less expensive.
Over time, they will be more prone to wear and tear. Choosing a quality-driven
purchase could be the difference between a product that lasts you a year or one
that’s with you a lifetime.
Splurge on Things
There’s an important distinction to be made between things
you splurge on and won’t end up using, and things you splurge on that will
become integral to your daily
life. The latter is almost always worth it.
For example, if a car in the window of an Audi dealership catches your eye, that car might end up being a vehicle that you use every
single day for multiple years to come. If you’re considering purchasing
something that you won’t use regularly, or on an experience
that you might regret, use that as a red flag to dissuade you
from the decision. Splurging on an item that becomes essential to your
lifestyle is different than a pair of designer shoes which never see sunlight.
Set Up a Splurge Fund
While the perception might be that splurges are impulsive
and uncalculated, many people who have set up splurge funds would beg to
differ. If you know that you’re prone to splurging, it might be in your best
interest to set aside a little money each month and place it in a fund. The
money in this account is yours to spend when the impulse strikes.
The consequences of not setting up a splurge fund—and yet
being a splurge buyer—are significant. By setting limits on your spending, you
keep yourself from making purchases that land you in debt.
Investments come in many shapes and sizes, and they don’t
always mean buying stocks or throwing money at a startup. Sometimes, investing
in your interests can be a lucrative decision.
For example, if you’re a person who has always been
interested in photography and aren’t satisfied with the pictures you capture on
your phone, buying a high-quality DSLR might
seem like a splurge purchase. Cameras like this can cost upwards of 1000
dollars, and additional lenses can almost double the price tag.
However, many people who have made this exact same splurge
purchase have turned their hobby into a lucrative career. Professional
photographers are paid well, the lifestyles are enviable, and few regret it
once they start. Unlike booking a lavish
vacation, it is not farfetched to consider this type of splurge
purchase an investment.
The lesson here is that not all purchases are equal. While
you should be looking to find the best deals that you can on every splurge
purchase, remember that the cheaper option might end up backfiring and costing
you more in the long run. Make sure your splurge decisions are calculated, set
up a splurge fund if you don’t already have one, and spend money on things that
are going to bring you long-term satisfaction. Splurging isn’t necessarily a
smart way to spend money but that doesn’t mean it can’t be.
Read Remaining part of the article at Ground Report