Oh, the money I’ve thrown away in years past…sigh….
During both of my previous marriages, it never occurred to me to save money. I honestly never thought I’d be alone. If asked, I would have said that being alone- and surviving on my own income– was my worst fear. When I chose to become a teacher, I knew teachers didn’t make the most money. After all, my mother was a teacher. I knew the struggle. I always assumed my income would be the supplemental income – the “fun” money.
Wrong!!!!!
When I became the breadwinner, I did learn a few things- very quickly– about budgeting. Not only was I able to pay my bills, within two years, I’d grown my savings account and had also saved enough to take a cruise. I’m not going to lie. It took extreme budgeting and living very frugally. But I was super appreciative of everything I acquired during that time- including my sense of accomplishment! Somethings, money can’t buy! You can see a few of my budget posts here and here.
Years later, I’m still using the same budgeting method. In fact, I’ll never go back to my old financially-oblivious days.
But still, I love quality items.
Unfortunately, no amount of broke-ness has changed that for me! However, I’m totally unwilling to go into debt for things that I don’t need. I no longer buy expensive things on a whim as I did in my married days. Now I’d rather have fewer, nicer things than have a ton of clutter.
This month, I finally purchased a MCM bag I’d had my eye on for years. Yay! I didn’t even feel guilty because I didn’t take a dime from my savings account.
Here’s how I can afford an occasional luxury item on a budget without taking from my savings account….
First, I have multiple savings accounts. I’ll talk more about the importance of this in a separate post.
One of my multiple savings accounts is labeled “Luxury”. (Because I can change my account nicknames online, I label my account according to my saving goal at the time.) I put all of my “free money” into this account.
What the heck is “free money”?
Free money is the money I receive from cash-back credit cards, Ratuken, or from yard-sale items. Any of that extra money I acquire goes into that account. If I have extra spending money left over at the end of the month after all bills are paid, I also add it to that account. (This is different from my savings account that I only touch for emergencies.)
Cash Back Cards
I love, love my Chase Unlimited Credit Card! I earn at least 1.5% on every purchase. I put everything that I can onto my credit card and then pay it off at the end of the month to avoid interest charges. I can even prepay my credit card and use it as a debit card. Beware- you have to be super disciplined with credit cards! Know what you are spending on every purchase. I check my balance every day. You wouldn’t believe the amount of cash back that I earn every month! Usually, it’s anywhere from $25-$40 a month! Also, my credit score has increased significantly just by using the card!
I also have an Amazon Prime card that gives me 5% back on every purchase. Instead of using it towards a statement credit, I put the reward money into my luxury savings account. If you are anything like me, you use Amazon a ton! Rewards add up quickly!
Ratuken
Another money-earning trick is using Ratuken (formally known as Ebates.) If you use this code, you’ll get a $10 reward! That’s free money for you! Before I shop online, I always shop through my downloaded app – or through the website if you are on a laptop. Remembering to do this is the hardest part of earning cash back! Every two months, I receive a check from Ratuken. My lifetime cash back is over $600! When I ordered my dining room suite through Ratuken, I revieved $250 back. I love free money!
Selling Used Items
I despise clutter! Sometimes I have yard sales, sometimes I sell things on Facebook. Any of that money goes into my luxury account. I’ve not tried selling anything on Poshmark or eBay yet. I’d love your input on that!
Other Helpful Tips
Before making big purchases, read blog posts, or watch reviews on YouTube. Do your research. It’s part of the hunt for the perfect purchase! Originally, I highly considered saving for the Louis Vuitton Neverfull MM. After watching YouTube reviews and comparing bags, I feel that I made an awesome choice with my MCM Medium Liz Reversible Shopper. Look at this super cute bag that comes with it!
Once you decide on your purchase, compare prices. For my MCM bag, I found that Zappos was cheaper. I was able to earn cashback with Ratuken in addition to earning cashback on my Chase card. I even had enough money left over in my account to purchase a cardholder- perfect for small purses- on the MCM website. It doesn’t match my purse, but it was on sale…and I really liked the gold color. Plus, it was beautifully packaged….a little bit of extra luxury!
So there you have it! That’s how I afford an occasional luxury item.
Next on the list is a bottle of Chanel No. 5 Leau! It’s the new take on the classic scent. And I want it before my wedding next year.
There is no feeling like working toward a goal and reaching it!
I hope I’ve been able to share some helpful budgeting advice. Go out there and find a way to get whatever it is you want!
Gorgeous bag! I’ve been a fan of MCM bags for the past two decades. They are beautiful bags worth every bit of the investment. I wouldn’t mind having one in solid black should Santa be listening 🙂 I have the LV MM and while I love it, I do wish it had a zipper. That is my only regret. I’m not familiar with Ratuken, but you can bet I’ll be checking that out just as soon as I hit the submit button on this comment.
Thank you! I have enjoyed my MCM! I do wish it had a pocket for my phone. But I have actually used the reverse side- although it was a struggle to turn it inside out! A big suprise- I use the small shoulder bag that came with it way more than I would have thought. It’s the perfect size! I’m extremely happy with my purchase, and I’d love a black one from Santa, too!