Frugal Luxury: 6 Habits To Pick Up Now To Afford Your Next Splurge
Say you’ve fallen in love with a vacation spot — you imagine strolling through its exotic streets, splashing around on its beaches, dining at its luxurious restaurants.
Big splurges are a necessary part of living a financially healthy life — as long as you plan for it, according to experts.
Check Out: 5 Frugal Habits of Mark Cuban
Read More: 4 Genius Things All Wealthy People Do With Their Money
The key to achieving a huge financial goal is setting habits.
“Embracing frugal habits has allowed me to enjoy luxurious experiences without guilt or financial strain,” said Andrei Vasilescu, co-founder and CEO of DontPayFull.
“By making simple lifestyle changes, like cooking at home or choosing to walk or bike, I’ve been able to save significantly — up to $300 a month,” he explained. “This adds up to $3,600 a year, money I can then splurge on a fancy dinner or even a lavish vacation.”
“It’s all about understanding the value of delayed gratification.”
“Every dollar saved from these small everyday changes boosts my splurge fund, enabling me to indulge in memorable experiences without compromising my budget,” Vasilescu added.
“This approach of swapping expensive habits for cost-effective ones, like skipping daily lattes or packing lunch, not only saves a substantial amount annually but also enhances my appreciation for the rewards.”
“It proves that a bit of frugality can indeed lead to luxurious rewards.”
Start Cooking at Home
“Absolutely, adopting frugal habits is a smart strategy to accumulate savings for a luxurious splurge,” said Vincent Cerniglia, principal at Noreast Capital Corporation.
“For example, cooking at home instead of dining out can save significantly. On average, a meal at a restaurant costs about $13 per person whereas a similar meal prepared at home might only cost around $4,” Cerniglia said. “If you cook at home five days a week instead of eating out, you save approximately $45 weekly, which sums up to about $2,340 annually.”
He said this amount could fund a lavish meal at a high-end restaurant or contribute significantly toward a luxury vacation.
Be Aware: 5 Unnecessary Bills You Should Stop Paying in 2024
Start Walking or Biking
Opting for biking or walking over driving can cut costs dramatically, Cerniglia said, depending on your vehicle’s fuel efficiency and maintenance costs, alongside parking fees in urban settings.
“If you usually spend $150 on gas each month, cutting this in half through increased walking or biking can save you $900 in a year,” he explained. “This isn’t only beneficial for your wallet but also your health and the environment, a triple win.”
Maximize Cashback From Everyday Purchases
“I’ve always been a fan of clever, low-effort ways to save money that can add up to a big reward,” said Rhett Stubbendeck, CEO and founder of Leverage Planning. “One tip I often share is about maximizing cashback from everyday purchases.
“It’s as simple as using the right cashback apps or credit cards,” he explained. “Imagine you spend about $600 each month on essentials; with a 5% cashback, you’re looking at saving around $30 monthly without any extra work. That’s $360 in savings over a year.”
You’ll want to find a card that gives you cashback in the categories where you spend the most — whether that’s groceries, gas or something else.
Set Up Automated Savings
“At [my company], we also emphasize automating savings for specific goals,” Stubbendeck said. “I tell our clients to treat savings like any other bill that must be paid. By setting up an automatic transfer of, let’s say, $100 every two weeks into a savings account meant just for your splurge, you save $2,600 by the end of the year without it pinching your daily budget.”
Apply the ‘One Less Approach’
“Another easy strategy is what I call the ‘one less’ approach,” Stubbendeck advised. “This means cutting just one recurring small expense each month.”
This might be a subscription service or a regular happy hour you go to, but it can make a big dent.
“If one less meal out saves you $50, you save $600 in a year.”
Stay Consistent in Making Smart Choices
“During my time at [my company], we noticed that small, consistent financial decisions play a significant role in larger financial health,” Cerniglia said. “It’s not just about one-time savings but developing habits that streamline your expenditures.
“Those who consistently monitor and adjust their spending priorities not only save more but are also better positioned to make informed decisions about their finances, be it in business or personal life,” he said. “So, setting a target, say, a specific luxurious dinner or vacation, and then modifying your daily habits can definitely help you accumulate the necessary funds without feeling overwhelmed. It’s about making smart choices; these small savings can add up quickly, and before you know it, you’ll be able to afford that splurge without compromising your financial stability.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Frugal Luxury: 6 Habits To Pick Up Now To Afford Your Next Splurge
