I’m a Frugal Shopper: How I Afford Luxury Items on a Middle-Class Salary
When you live on a middle-class salary — somewhere between $50,000 and $150,000 a year, depending on your costs of living and household size — chances are you strive to keep costs low on certain things. This might mean avoiding anything considered “luxury” since, with the high price tag, they can significantly cut into your budget and be hard to justify.
But just because you’re trying to keep costs down doesn’t mean you can’t still afford some luxury items. As savvy shoppers will tell you, it’s all a matter of planning out your purchases and making strategic decisions.
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“If you think luxury items such as cars, vacations and tech gadgets are out of reach, it’s time to reassess that thought,” said Scott Lieberman, founder of Touchdown Money. “You can afford luxury items with a middle-class budget; it’s just a matter of budgeting your money carefully and using it wisely.”
Here’s how frugal shoppers afford luxury items even while on a middle-class income.
Shop at Discount or Secondhand Stores
Whether you prefer shopping online or in person, you can find discount stores where the prices of luxury goods are much lower than what you’d get elsewhere.
“For luxury goods, [it’s] hard to beat Gilt and The Outnet. I also have been a HUGE fan of Otrium, but they just shut down US operations [and are] now only available in Europe,” said Jessica Doyle, a shopping and trend expert at Give Freely.
You can also go with secondhand or thrift stores if you prefer.
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“Secondhand is my fave way to score amazing handbags and jewelry, in addition to clothing and accessories,” said Doyle. “I even sourced an incredible sconce for my kitchen from The RealReal.”
Other places Doyle suggested include Depop, Farfetch Pre-Owned, Vestaire Collective and eBay — a platform that authenticates things like handbags, watches and sneakers. Certain brands, like Doen, even had preowned divisions where you could buy cheaper versions of luxury items.
Plan Ahead
It’s easy to spend more than you have when you don’t have a budget or a plan. If you want to afford luxury items, make sure you’re planning.
“Make a realistic budget that allows you some wiggle room for nice things and experiences,” said Lieberman. “So, when the opportunity (or sale) presents itself, you won’t have to scramble to figure out how to pay for it.”
Save and Spend Smart
A lot of folks on a household budget don’t leave room for nonessentials like entertainment, miscellaneous expenses or luxury goods. But if you want to afford these types of things, carve out some extra space.
“Add space in your budget to treat yourself. This way, if a luxury item you’ve been eyeing finally goes on sale (and you can afford it), go ahead and get it!” said Lieberman.
If you’re struggling to make room in your budget for luxury goods, see if you can cut back on some of the less important expenses in your life.
“Eating at home is a clichéd tip, but it really works,” said Lieberman. “One deli sandwich a week costs about $10; you can get a week’s worth of sandwiches for that price.”
Keep an Eye Out For Discounts
Even luxury goods go on sale sometimes. So, whether you’re on a middle-class salary or not, if you want to keep costs down while still splurging every now and then, keep an eye out for those discounts.
It’s not just about the discounts you see at stores, though. Doyle suggested looking into companies that automatically find you discounts whenever — and wherever — you shop to ensure you’re getting the best deal possible.
“I currently work for Give Freely, a company that finds you discounts everywhere you shop (technically at 10,000 online stores),” said Doyle. “Not only can you get deep discounts at the luxury stores, but for every purchase you make, the store will donate to your favorite charity for free. It costs you nothing.”
“So, you could find 50% off a pair of luxury sneakers and donate 10% of the purchase to Komen, or charity: water, or St. Jude’s, or whatever nonprofit you support — it even works for your local Girls Scouts troop if that’s your interest,” added Doyle.
Knowing that some of your money is going toward charity can also make you feel even better about your purchase — you get something you want and your money’s going to a good cause.
Set Realistic Goals
Whether you want to buy a $10,000 Rolex watch or spend $50,000 on a luxury vehicle, you’ll need to set some realistic goals that’ll get you there.
“Knowing how much you can save per day can help,” said Lieberman. “Let’s say your dream vacation costs $5,000. If you can set aside $15 a day, you’ll be able to pay for it in just under a year.”
Setting smaller savings goals like this can be a lot less daunting than having to immediately scramble to find the money you need. And if you set up, say, automatic withdrawals from your checking to your savings account, you can save more consistently without having to think about it.
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This article originally appeared on GOBankingRates.com: I’m a Frugal Shopper: How I Afford Luxury Items on a Middle-Class Salary
