Americans spend over $1,650 per year on retail therapy, buying clothes, shoes, and accessories for a dose of the ‘feel-good factor’. People typically buy 12 items per month in stores and 6 online, with many people reporting that their choices are often based more on pleasure than on need. At the same time, U.S. consumers comprise the largest segment of luxury consumers, and statistics indicate that from 2017 to 2018, the participation of affluent consumers in luxury purchases rose from 67% to 71% on a worldwide level. If you are happily employed and you like nothing more than indulging in luxury items, how can you do so while continuing to save for major financial commitments, including buying a house and settling down?
Opting for Timeless Purchases
A pair of Loewe shoes, a Cartier watch, or a Burberry trenchcoat are examples of classic items that will never go out of style. In reality, bags, accessories, and coats are the ultimate safe purchase because they can last over 10 years without a scratch, unlike shoes, tops, or other more fragile items. The bad news is that classic items from fashion houses of this calibre don’t often go on sale, so unless you have your eye set on one item, in particular, it might be a good idea to see what other brands offering similar quality have to offer at sales time.
Using the Right Credit Cards
Debit cards are ideal if you can pay upfront since you won’t need to worry about interest. However, if you find a great deal on a luxury item you are passionate about, carefully compare the interest rates charged by different credit cards and go with the one that will cost you least in the long run. If you are relying on a flexible payment option, try to complete payments in as small a number of months as possible, to avoid unwanted interest accumulating.
Timing Your Buys
Black Friday, summer sales and other specific dates throughout the year are key when it comes to making savings of 50% or more. Therefore, it is important to make a list of wanted items, which you can quickly check online for deals on these occasions. Make sure to sign up for emails from top brands; some will offer big discounts for a specific number of days at odd times of the year, while others only offer discounts to registered members.
Luxury buys are a long-term investment so only make one if you will actually have a real use for what you buy. The worst thing you could possibly do is splurge on an item of your dreams and pack it away in your closet. Think well about items that could make your life easier, as well as more beautiful, and remember that everyone deserves a treat now and again!