5 Easy Ways To Save Money For Your Luxury Shopping
A must read article for luxury shoppers.
Disclaimer: Results from these techniques can vary.
There are two things I learn as a finance student; how to effortlessly move money and how to save better. As luxury goods prices continue to increase, it can sometimes be discouraging to buy. The golden rule in luxury shopping is that you only purchase luxury goods if you have extra money left after you have paid all your bills, investments and unpredictable rainy days. So before you indulge yourself in luxury goods, do yourself a favor and follow the rule first!
If however, you have been religiously following the rule, and you ended with $150 to spare, but you want to buy that $300 Kenzo shirt you found online, then keep reading. I will share with you some of the things that I have learned throughout the years, that are now a staple in my financial strategy.
So sit back, relax and grab a cup of coffee because the class is now in session!
Tip 1: Go out less, at least for a month!
Just like anything in life, if you want to make it happen, you will prioritize it. If you want that $300 shirt, you need to make budget cuts on things like going out for dinners, having a drink, or watching a movie.
Did you know that according to the Australian Bureau of Statistics (ABS) that an average individual would spend $112 on a night out and goes two nights a week?
So let's say, you spend at least $112 per night out and if you go out 4 times a month, you would be spending $448 per month.
If you decided to cut your night outs to twice a month, you would be able to save $224 per month, which covers that shirt that you desperately want to buy.
Tip 2: Buy coffee 4 times per week, not every single day.
If you buy a coffee every day, cut it to 4 times per week. This small change will make a huge difference!
If you buy coffee every day and the average price you pay is $5; multiply this by 31 (because there are 31 days in most months), and this would equal to $155 per month.
If you decided to cut it 4 times a week, you would only spend $80 per month and you would be able to save $75 per month.
Tip 3: Cut Back On Fast Fashion
As an avid shopper, I am guilty of this. I also love buying clothes from brands like Asos, H&M, or Zara. The quality of these brands is a hit or miss; sometimes you get high-quality stuff and sometimes you don’t.
I learn how to pace myself when it comes to buying from these brands; whenever I itch on buying something, I always ask myself, “Do I need this?”, “Would this last long? or “Is the price worth it?”.
Developing this kind of mentality has prevented me from buying impulsively and allowed me to invest in pieces that last.
Tip 4: Get A Piggy Bank
Did you remember that piggy bank that you have when you were a kid? Well, It’s time to buy them again! This is one of the most underrated ways of saving. I recommend from now on, try to pay cash as much as possible, and when you received any loose change or small notes, put them in the piggy bank. Once it's full, crack the pig open!
Back in 2020, I was able to save $400 by using this process; though, please note I was putting an average of $7 per week.
Tip 5: Download Commsec Pocket*
Nope, this post is not sponsored by the Commonwealth Bank Of Australia. I added this to my list as this works. Commsec Pocket allows you to invest in EFTs with as little as $50, and you can gradually build your portfolio over time. With low cost and no ongoing account fees, this is ideal for those who want to get into investing. And just like with any other share portfolio, you can sell this share and potentially make a profit.
*All investments come with some degree of risk, so it’s important to do your research before you commit to anything.
References
Douglass, K 2021, What a Night Out Really Costs, Oiyo, viewed 12 June 2022, <https://www.oiyo.com.au/savings/what-a-night-out-really-costs/#:~:text=The%20Australian%20Bureau%20of%20Statistics,out%20two%20nights%20a%20week.>
Commsec 2022, Commsec Pocket, Commonwealth Bank Of Australia, viewed 12 June 2022, <https://www.commsec.com.au/pocket>
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