Not to step on Savvy's toes, but if you're having a hard time keeping your spending under control, this post is for you. I've already talked about strategies to spend less on beauty products, but a post on Get Rich Slowly gave me a great idea.
Instead of charging that splurge item, go with a creative kind of installment plan. Purchase gift cards with cash when you can afford it, then save them until you have enough money to buy the item. Yes, you'll have to wait a little while before putting your hands on that Clarisonic or T3 dryer, but it's better than paying interest on a credit card balance. To see how long it'll take you to save up your money for a few big-budget beauty buys — and to see the money you'll save on interest — read more.
| The splurge | If you want it in a month, then save... | If you can wait two months, then save... | If you can wait three months, then save... |
|---|---|---|---|
| Clarisonic, $195 | $49 a week | $25 a week | $16.25 a week |
| no!no!, $250 | $63 a week | $32 a week | $20 a week |
| Bespoke Labs Overnight Dryer, $130 | $33 a week | $16.25 a week | $11 a week |
To put things in perspective, let's pretend that you decided to buy the $195 Clarisonic with your credit card and took three months to pay it off. Assuming a 10% interest rate that same purchase would cost $258.50 — more than 60 dollars more! And if your rate is even higher — let's say 19% — you'd wind up paying $328.60 over three months. So as you can see, a little planning will save you a ton in the long run.
Dessous
The Body Shop
Juicy Couture
I'd actually thought of doing something like that with my Starbucks card, refilling it when I had an influx of cash. It's a pretty good idea.
1This is a great way to stay within a budget. It's too easy to go into a store and buy something extra cause it's "only $20 more", but it all adds up. If there isn't money on the card then you wouldn't spend the extra money!
2I do this with restaurants...never thought to do that with other cards!! Great idea!
3this is the best idea pretty much ever.
thanks for enabling my broke ass! ;D
4Great idea!
5I have always planned to do things this way and am now determined to do it! thanks for the kick in the butt!
6Not a bad idea! I'm not much of a splurger, but it would keep me within budget and make me consider my purchases even more.
7This is a good idea, but if you're saving up long term for an item: BE CAREFUL!
8Some gift cards take out annual fees or expire completely after a while...and there's no way of getting that money back.
Good thinking!
9That's such a great idea... thanks bella!
10No way.. after what Shaper Image pulled I don't trust gift cards. Since they filed for bankruptcy (and most are now closed) they would no longer accept gift cards. The unlucky people who received those as presents or bought them for themselves got stuck with a useless piece of plastic. I'd rather save on my own or buy with my card and then pay it off at the end of the month.
11Gift cards are no longer allowed to have an expiry date... or at least in Canada they aren't.
12meh, thats just pure effort though. :/ why not just get a job that pays more. or jsut stick to buying just things on your income can afford.
13dont get people just only earn like 15grand a year seem to try and live like a millionaire. jeeze.
Finally TFS! I thought I was the only one who thought that way.
14That's kind of a cool idea...it's kind of like putting money aside for something, but you're not tempted to spend it on other stuff because it's a gift card. Much better idea than paying credit card interest.
15Good idea. I'd probably forget that I did it though.
16Great idea Bella!
17People should beware of buying gift cards because they steal your money! I always wind up forgetting about gift cards and when I finally bring them back to the store, I find that they have been taking $2.00 off of my card every month for 3 years. Gift cards are in general a scam... Don't get them! There is nothing wrong with keeping money in your pocket!
18Maybe get a piggy bank? Or stuff your cash in a sock drawer? Or a savings account? Just sayin, less effort for the same result...
19Great idea...
20cant wait to do this with everything!!
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