Tips for Shopaholics Wishing to Spend and Save Simultaneously
The average American spends around $1,803 per year on clothing – which is probably way beneath what the typical fashionista wishes to dedicate to their wardrobe. Considering that a pair of Yeezys can set you back around $350 and Prada’s small nylon bag starts at $280 in price, it can be easy to see how your yearly spend can extend to thousands on clothing alone. The good news for those who enjoy the ‘kick’ of bringing home a new pair of shoes, luxury skincare products, or jewelry, is that you can indeed save while giving yourself monthly treats. Follow these tips and ensure that your savings account grows even more quickly than your wardrobe.
Quality over Quantity
To be a smart shopper, prize quality over quantity and buy designer items during key times of the year – such as sale season or special sale days. There is little point in buying five pairs of shoes for an upcoming vacation if they are likely to cause pain, break apart, or fail to provide the right ‘grip’ for the activities you have signed up for. Quality can be tested by checking out reviews and vlogs on designer products you are interested in. Don’t be tempted to buy items on sale that don’t suit your intended purpose. For instance, a running shoe may be on sale but if you are more into trekking, it is best to opt for a well priced mountain shoe, even if the discount on the product is lower.
Opting for the Right Payment Method
When choosing payment methods, ease and interest are the prime factors to look out for. Comparison sites will show you how much you can save by opting for different types of credit card. Shop with cards that offer you very low or no interest, and those that offer reward payments and high percentages back for any interest charged. You can save up to $4,000 just by choosing the right card, but you will need to be making more than a specified income to be eligible for one of these. If you have maxed your credit card out before, then cash payments or debit only cards may be the ideal choice for anything other than necessities.
Tech Tips for Savers
One of the biggest mistakes made by over-spenders is a simple lack of awareness of how much they are spending. A Tshirt here, a beauty product there, a gourmet cup of coffee while shopping – all these expenses can add up to hundreds of dollars (or more) per month. According to Investopedia and other finance sites, some of the best apps for savers include Mint, Wally, and You Need a Budget. The latter is particularly handy for shopaholics because it works around the premise that every dollar you have should fulfil a useful purpose. After helping you allocate budgets to different expenses, it gives you advice on how to re-balance your budget. By using the app, you can look forward to repaying around $500 in debt in your first month of use. Acorns is another useful app that rounds up every expense you pay with a credit card, investing this ‘change’ automatically on your behalf.
Financial experts normally recommend that you set aside around 20% of your income for savings. Depending on how much you earn, it may still be possible to do this while building the wardrobe of your dreams. Use an app like Mint to set a limit for your monthly shopping and stick to your budget. List the quality items you need and take advantage of special days like Black Friday to get your hands on a highly coveted purchase. Finally, don’t waste money by using a high-interest credit card. Live within your means but don’t be hesitant to give yourself an occasional treat.
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