Tax season is upon us and refunds are already hitting our bank accounts. 🤑 Planning to do anything crazy with the cash? We might feel crazy enough to fill our entire shopping cart with everything on the list! 🥳🛒
When choosing whether to splurge on a big buy or save your pennies, it’s all about asking yourself a few key questions. Consider these gems before your next shopping trip.
Here’s Five Fast Facts on when to splurge and when to save:
- 🧮 Perfect Fit - Wondering if a big spend is the move to make? First ask yourself if it fits in your budget. Don’t have one? At the very least, determine whether or not a purchase is a “need” or a “want.” If it’s not essential to your family or the purchase sucks funds away from something more important, you may want to pass.
- ⏰ The Big Payback - You know what they say. Time is money, baby. When considering a splurge, ask if it will pay you back in time or energy. If that’s the case, maybe hiring a house cleaner every now and then is worth it. Splurges might pay you back in money, too. For example, energy-saving appliances might be pricey up front, but you’ll make your money back (and then some) on utility bill savings over time.
- 💰 Bargain vs. Bougie - Some items are expensive because they’re higher in quality. While splurging on designer-label clothing isn’t always worth it, buying low-quality duds could backfire. Ask yourself if spending a little more on quality will save you from spending more on a replacement later. If so, it might be worth it.
- 💫 Align It Up - Need another cash-spending compass? Ask yourself if a potential splurge aligns with your values. For example, spending a little more on something from a local small business might be a more aligned financial choice than buying from Amazon.
- 🐢 Slow and Steady - Got your heart set on a splurge? Ask yourself if you need it ASAP or if you can wait awhile and save for it. If it’s not an emergency, taking time to save up for a big ticket item can ease financial stress. Depending on how much time you have, consider stashing the funds in a high-yield savings account to earn a little interest while you wait.
🔥Bottom line: Putting those splurges on plastic? Make the most out of it by using a card with a rewards program. We love us some extra points! Did you know that some credit cards offer perks like extended warranties and travel insurance? Read up on all those benefits in this article!
What was the last thing you splurged on?
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