Finances

Save To Splurge: Treat Yourself Without Debt

Saving money is a lifestyle choice that not all of us want to make. While some people are life’s natural savers, getting genuine pleasure out of seeing their savings account balance steadily climb, others have more of the ‘you can’t take it with you’ attitude, where the true value of money is only what it can enable you to do or get. And while having a certain amount stashed in a rainy day fund is just basic financial hygiene, anything on top of that is a choice. No matter what your income, there is definitely value to be had in saving or spending in a way that gets you the lifestyle that you want. If that is being frugal, then fine. But equally there is nothing wrong with saving to fund a splurge. In fact, it’s much better, because although credit cards aren’t good or bad in themselves, using them to fund consistently out of reach lifestyle choices is a bad idea that can quickly spiral out of control. If you want to save up to treat yourself, here’s how…

woman holding credit card and shopping bags
Save to splurge? It can be done! Image via Pexels.

Create A Savings Plan

First up, be clear about what exactly it is that you want to splurge on, and what it costs- not just a vague amount, know the exact total you need to achieve by doing your research, whether it’s a designer bag or even checking prices with Bentley Dealers. However big or small the purchase, know the amount. You can then create a realistic plan to save the balance. Expect that the price may rise slightly with inflation in the time it takes you to save, and budget for that also. Break down the amount you need to save by different periods of time to find a monthly amount that is comfortable. If you set the amount too high and have to really deprive yourself, you are unlikely to stick to it. Be realistic – if you really want something, it will be worth the wait! Once you have your realistic savings timeline, things become much easier to achieve than just trying to save what you can.

 

Set Up Automatic Transfers

Savings become easier when you don’t have to think about them too much! Use your banking app to set up a monthly direct debit for the amount you need to come out of your current account the day after payday, before you can spend it. You could also use an app like Moneybox, which will combine regular savings with a feature which rounds up your card purchases to the nearest pound and saves the difference for you.

 

Make Strategic Savings

One way to finance your splurge is to take a scalpel to your monthly splurges. Cancel those subscription boxes. Get store brand groceries rather than labelled ones. Turn your roaming data off and only use Wi-Fi. Look up some money saving tips and see which ones you could implement to get you closer to your goal. Any bonus amount that you manage to save gets you closer to your goal, sooner. You could even create a pinboard visual savings chart to represent your progress. Before you know it, you’ll be enjoying your splurge – even more so in the knowledge that you aren’t going into debt for it!

*This is a collaborative post

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