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Once in a while, it makes sense to buy a luxury item. Buying luxury items makes us feel good or important. Your luxury items of choice be a handbag, fancy clothing, or even a high-performance sports car. The important thing about buying luxury items is saving money properly so that you don't go into debt when making a purchase.
In this article, we'll go over how to save money for luxury items and how to spend less money on them, so that you can get yourself something fancy once in a while.
Let's jump right in.
Table of Contents
1. Save Money Regularly for Luxury Items
The first step to having the ability to buy a luxury item is to save money regularly. You can also look and act rich on a budget. If you have a specific item you're saving up for, it might make sense to open a separate savings account for what you plan to buy.
From there, set up an automatic transfer to your luxury item savings account. Then, save as much each month that fits into your budget.
Some great ways to save money consistently include:
- Packing lunch and snacks for work instead of eating out
- Making your own coffee instead of going to Starbucks
- Going over your subscriptions and canceling what you aren't using frequently or at all
Additionally, check out this article on how to save up to $10,000 per year. When you can maximize your savings, you'll be able to afford luxury items more easily without having to sink into debt.
2. Focus on Lowering Other Expenses
When you want to afford a luxury purchase, it makes sense to lower expenses in other areas of your life. Here are some examples of how to lower your living expenses so that you can buy something nice for yourself.
- Instead of going out to a fancy dinner, have friends over for homemade pizza and drinks at home.
- Instead of getting your nails done every week, go every other week or buy nail polish at a local drugstore.
- Spend less on cable TV by using streaming services like Netflix or Hulu instead.
- Work out at home instead of paying for an expensive gym membership.
- Lower your grocery bill by using the app Ibotta where you'll earn cash back on grocery store purchases.
To continue with more examples, check out this article on 35+ ways to lower your monthly expenses.
3. Add Some Extra Income
Of course, you can raise your income a bit as a way to afford more luxurious things in life. There are several ways to up the money you have coming in, and you can do one or more of them, based on how much time you have available.
To increase your income to buy luxury items, try:
- Selling some of your possessions on eBay or Craigslist.
- Renting things you own on FriendWithA.
- Working an extra job for a few hours each week.
- Taking freelance work if you have downtime in between jobs.
- Filling out online surveys on Swagbucks, Survey Junkie, and Inbox Dollars.
- Starting a side hustle or making money online from home.
4. Avoid Using Debt To Buy Luxury Items
You may see a fancy handbag that you want but don't have the money, and instead, you swipe your credit card and go into debt. When you do this approach, you get into the habit of living above your means, meaning you're spending more than you make. Instead, focus on living below your means.
On top of that, you may feel guilty or overwhelmed when you get your credit card statement at the end of the month.
To avoid this, set up a plan so that you can afford the luxury item. As mentioned above, save and transfer money each month to a savings account dedicated to whatever luxury item you'd like to buy.
5. Buy Quality Luxury Items
Whether you're buying expensive shoes, a fancy watch, or that fantastic sports car, buy luxury items that are of high quality. Since you're likely to spend a lot of money on these purchases, you'll want to have security knowing that what you buy lasts a long time.
For example, even though you might want a Rolex watch for the prestige and status it conveys, understand that they're not inexpensive. As such, buy one that will last for years to come so you can enjoy wearing it without worry about replacement costs or repairs.
Additionally, take extra good care of your luxury purchases. The last thing you want to do is accidentally ruin something that you paid a lot of money for.
6. Look for Discounts and Sales
One of the best ways to afford a luxury purchase is to buy it when it's on sale. To find out about flash sales, sign up for the product's company's newsletter on the store's website.
You'll often get marketing emails about what's new in the store and what's on sale. Use this to your advantage and buy when the price is the lowest.
In the case of a sports car, buying a well-maintained sports car that's 5-10 years old could save you over 60% off the original price. The site Carfax is a great place to find older luxury cars.
7. Mix Luxury with Non-luxury Items
One way to afford luxury items is by buying them alongside your everyday non-luxury purchases. For example, you could buy a $20 t-shirt and then buy that expensive handbag or pair of shoes that match perfectly.
You certainly don't need to wear an entire wardrobe of expensive clothing and apparel. Instead, pick out something you really want and accessorize it with less expensive items. This will allow you to look great while also spending less on luxury items.
8. Enjoy, But Only Buy What You Can Afford
The best thing you can do to enjoy your purchase guilt-free is by never buying something that's out of reach for you. If the price tag doesn't match the amount in your bank account, don't put it on a credit card and hope to pay it off later. That will only result in more debt.
Remind yourself that you don't have to keep up with the Joneses. You can spend less money and still live your best life.
Sure it's nice to buy something luxurious once in a while, but make sure that you're staying within your means. No luxury purchase is worth spiraling into debt.
9. Buy What You'll Continue to Use
Buy luxury items that you'll continue to use for a long time. This will prevent you from wanting to buy more and more luxury items that you might not be able to afford. Instead, find something that's perfect for you and hold onto it for as long as you can.
Found a gorgeous handbag or pair of shoes? Save up and make a purchase, and then take good care of them while getting good use out of them.
By buying things that you'll use for a long time, you'll both save money and be more satisfied with what you bought.
10. Rent Luxury Items When It Makes Sense
It can be less expensive to rent luxury items instead of buying them, especially if it's a fashion item that might go out of style sooner than later.
Another benefit of renting is renting multiple fancy items at once since you won't be spending a lot on buying a single item.
This is especially helpful when you're organizing a big event. Renting means that you can coordinate your outfit with the venue and make it look as polished and elegant as possible without spending a ton of money.
Here are some places where you can rent designer clothing, handbags, and other accessories:
Wrapping It Up
In this article, we discussed how to save money for luxury items and how to spend less money on those luxury purchases. With these tips in mind, you'll be able to buy something nice that makes you happy without breaking the bank or sinking into debt.
What's a luxury item that you've had your eyes on?