We all know that feeling that comes with a “great buy”. That feeling when we walk out of a store with a shiny new something-or-the-other to wear, use or simply admire. For some, that could be a new car or a trip. For others, a new pair of sunglasses does the trick. No matter the cost, sometimes a splurge just feels good. The feeling of happiness, however, can quickly be overtaken by dread as your credit card balance creeps higher and higher.
June 18 is National Splurge Day (yes, it’s a real thing!), but before you use it as an excuse to pick up that pair of designer shoes you’ve been eyeing, we’ve come up with a few ways to satisfy your splurge craving while sticking to a budget.
Canadians spent $29 billion buying and selling used goods last year according to Kijiji’s Second-Hand Economy Index. Thrift-shopping may have been taboo five years ago, but it has now become commonplace to purchase used items from both storefronts or online marketplaces. Purchasing second hand means paying a fraction of the price for pieces that are like-new, or sometimes even brand new. It’s ultimately a great way to find quality items, limit your spending, and treat yourself.
Keep a splurge account
Tuck a few dollars away each month into a “splurge account.” If you wish to purchase a specific item, create a savings goal and a timeline and work towards it. Or if you want that money to splurge on a whim, simply use it any time you want to buy yourself something guilt-free.
Use up those points
If you’re eager to splurge and don’t have the cash, using up your loyalty points can give you the spending power you want without the hit to your wallet. It’s basically free money.
For example, the Scotia Momentum® VISA Infinite* card offers maximum cash back on everyday purchases. You can receive up to four per cent cash back on purchases from eligible gas stations, grocery stores, drug stores and recurring bill payments. And while there is a $99 annual fee, new accounts opened by July 31, 2017 will receive an annual fee waiver for the first year.
Or if you’re a Joe Fresh fan, you can earn a lot of PC points with a President’s Choice Financial® World Elite MasterCard®. Card holders earn 30 PC points for every dollar spent at grocery stores where PC products are sold, Shoppers Drug Mart and PharmaprixMD. On top of that, you also earn 10 PC points for every dollar spent everywhere else. These points can then be used on purchases in stores where President’s Choice items are sold, including Joe Fresh attire, or even your regular groceries.
Plus, for a limited time, when you apply through RateSupermarket.ca and activate your card, you’ll get a $100 e-gift card and up to 20,000 PC points.1 That’s $20 worth of PC points towards your groceries! Redeem PC points at participating grocery stores where President’s Choice® products are sold. Get more bang for your buck this summer and sign up today!
So if you have a rewards credit card or various store loyalty points cards, do yourself a favour and find out your rewards standing. Without knowing, you may qualify for some discounts or have a few items-worth of points just in your wallet.
If you don’t have a rewards credit card, check out our best rewards credit cards to find a program that best suits you.
You may have heard of the lipstick effect – or the willingness to spend money on small luxuries. Though it’s typically a term used specifically for those who spend during periods of economic downturn, it can be applied to those on a budget. It is fine to treat yourself every now and then, and purchasing a small luxury may be one way to get your fix while on a budget.
This one might be a no-brainer but it’s worth mentioning. Every once-in-a-while, retailers will slash their prices, whether it be for a holiday sale, end-of-season sale, or closing sale. So if you’re look to splurge, wait until your favourite store is offering its best discount. If you’re not sure on when future sales will happen, ask a salesperson or manager. He or she might have a better sense of timing for big sales.
Or if you’re more into online shopping, scour the internet for sites that reference coupon codes for different retailers. Though it may be hard to find a legitimate code that works, you may be surprised to find a 25 per cent coupon every now and then. These sites can be helpful too as they usually tell you how often the code has worked and not worked for other people.
No matter how you choose to splurge, the key is to make a budget and stick to the amounts you’ve allocated for your splurges. This will allow you to have fun without compromising a long-term savings plan. Sometimes, it’s easy to say YOLO and treat yo’self, but there’s nothing worse than buyer’s remorse all thanks to a high credit card bill.