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.
Bulk Purchases
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 You’ll Use
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.
Splurge on Investments
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.