In Money, Style

When to save and when to splurge

It  can be hard to figure out when you should save money and when you should splurge.

Here’s how I do it:

IS IT IMPORTANT TO BUY THE BEST ITEM OUT THERE?

Things like car seats, baby strollers and other safety or health-related things fall into this category. Food included, because we buy organic food when we can, and the best quality we can find for the price.

You do not want to compromise on safety or health, but in the same vein, you do not want to spend $1000 for an UppaBaby stroller when something in the $200 – $300 range will do just fine.

Another example is that if it costs $1000 for an medical injection that you need to save your life, you are darn well going to pay for it, aren’t you!?

In this case, it’s a balance between spending a lot of money (a price tag does not always equal high quality), versus compromising on things like aesthetics or ease of use.

WILL I KEEP AND NEED IT FOR THE LONG-TERM?

If I don’t plan on keeping it for the long-term (e.g. a super trendy item or something for the baby that they only need for 3 months if that), then I don’t spend a lot of money on it.

What falls into this category for me are things like coats. I have a thing for coats, blazers and jackets, because Canada tends to be on the cool rather than hot side.

Wardrobe-Closet-Mochimac-Clothes-Tops-2

Jackets and coats are what people see 99% of the time in your wardrobe, so why not buy a beautiful, warm, comfortable one that everyone will see all the time?


(Exactly.)

IS IT GOING TO BE SOMETHING THAT WILL BE USED ON A DAILY BASIS?

What falls into here for me are shoes. If shoes are not comfortable, well-made and wonderful, you will wear them for 8-10 hours a day, and CURSE YOUR CHEAPNESS.

Wardrobe-Closet-Shoes-Ballet-Flats-Collection-Sandals

If you come home with blisters, bunions, crooked toes, calluses, and a whole host of back and foot problems, you will wish you spent the money on a properly made boot, shoe, heel, or whatever you want to put on your feet.

It is not worth it for me to hobble around.

WHAT IS MY USAGE OF THE ITEM COMPARED TO THE PRICE?

Something I don’t plan on using a lot, I won’t be spending a lot of money on.

For instance, books. I read it once, I don’t really re-read it again unless it’s for sentimental reasons, so I tend to avoid buying books, and go online to download ebooks from the Toronto Public Library instead.

Something like a laptop however, I am willing to spend a fortune to get the best one out there (I have run the gamut of laptops and they’ve all annoyed me because I was too cheap and didn’t want to spend the right amount of money to get the right laptop).

So I shelled out $3000 for a great Macbook Pro 17″ (when they still made 17″ laptops), and I have never been more pleased with my purchase in my life.

I use it 6-8 hours a day, and it doesn’t give me nearly as many problems as my other Windows PCs used to. I still get a few errors and problems here and there, but it’s 1% versus 75% of the time.

HOW DO YOU DETERMINE WHEN TO SAVE OR SPLURGE?

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Sherry of Save. Spend. Splurge.

Am my own Sugar Daddy. Am a millionaire at 36 after getting out of $60K of student debt in 18 months, a little over a decade earlier, using TheBudgetingTool.com. I have worked 50% of my career (taking 1-2 year breaks), and quadrupled my income within 2 years of graduating, going from $65K to $260K with an average lifetime savings rate of 50%. I have 11 side incomes that are on track in 2020 to make me $50K - $75K. I could retire today if I wanted, but love my work-life balance as a freelancing consultant in STEM (Science, Technology, Engineering, Math). I am all about balance - between time and money, and also enjoying my money. I also post daily on Instagram @saverspender.

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12 Comments

  1. Revanche

    I had to laugh about the UppaBaby thing because I have a story for you! But I will share later 😉 PiC bought me a Patagonia winter coat and it saved my tuchus more than a few times, not least when I traveled to a place with SNOW and I would have frozen and shattered into tiny little bitty pieces without that coat. That coat was worn hundreds of times.

    Reply
    1. save. spend. splurge.

      A quilted coat sounds like a lightweight traveling essential to me

      Reply
  2. Suzi

    I’m with Taylor Lee 100%!

    Reply
  3. Leigh

    I’m with you on this! I tend to splurge on items I use more often / items that I don’t use very often, but I know I’ll keep for a long time. I buy solid running shoes, outerwear, jeans, and purses. I tend to be cheaper with my tops though as they don’t last nearly as well. I bought a $200 rain jacket that is amazing. Or my boyfriend bought a $500 one because he wears it every day 9 months out of the year. I’m planning on spending some money to upgrade my desktop computer in the next few months, probably a new hard drive, monitor, and motherboard. I use it so often. I also buy good phones as I

    Reply
    1. save. spend. splurge.

      If you really want to spend money on a good computer, I can’t recommend a Mac enough. May not be your cup of tea but I’m amazed at how long they last and how good they are.

      Reply
  4. Sylvia @ Miss PF

    I use the $1 per use rule. If it’s $20, will I wear it 20 times?

    This obviously does not apply for nicer items, like say…a wedding dress.:P

    Reply
    1. save. spend. splurge.

      That’s a good way of looking at it..!!!

      Reply
  5. Sylvie

    Apart from my trench, I have paid $$$ for handbags. The quest for the perfect bag might be elusive, but two designer bags I purchased years ago–same company–have held up in ways their predecessors did not.

    Reply
  6. Taylor Lee @ Engineer Cents

    I rarely buy things (because, cheap) but when I do I try to make it buy-it-for-life quality. It costs a lot up front, but makes me happy to have nice things I actually want to take care of over time.

    Reply
    1. save. spend. splurge.

      I’m pretty rough on my goods so I can’t say THAT but I do like quality items so it can take a beating. haha.

      Reply
  7. Clarisse @ Make Money Your Way

    I used to buy cheap mobile and get disappointed because of the low quality of the phone. So now, I prefer to buy branded phone like Samsung or the iPhone, even if it’s expensive, but the quality is superb!

    Reply
    1. save. spend. splurge.

      Yes, you can hear calls, and actually talk to people!

      Reply

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