When to spend money
Would you feel guilty buying a new car or fancy laptop? Read on to make yourself feel better.
Following George’s Osborne’s announcement of the most austere Budget in decades, most of us are in a frugal frame of mind.
These days, some of us feel guilty every time we open our wallets. Do we really need what we’re about to buy? Shouldn’t we be saving in case there’s another financial crisis?
Of course, it’s wise to be prudent. However buying something you just have to have might not be such a bad idea from time to time.
Does your treat cut the cost of bills?
Buying a new car might seem like a pretty extravagant purchase but your initial outlay could reduce your monthly expenses.
If your current car is expensive to insure, you could save hundreds of pounds a year by switching to a less risky model.
Warning signs that your premiums may be high include driving a sports car or vehicle with expensive parts to replace. For more information, see ‘Cheapest cars to insure’.
By exchanging a gas guzzler for a more fuel efficient vehicle, you could slash your monthly petrol bills.
Make yourself more employable
Any purchase that improves your earning power could make a worthwhile investment.
Freelance designers, for example, need up-to-date software to compete for the best jobs and most writers wouldn’t be able to survive without a laptop. However, that doesn’t mean we shouldn’t shop around for the best deals on those work-related purchases.
Special occasions
For many of us, cost cutting is part of our day-to-day routines. We take our lunches into work and shop around for the best deals on utility bills.
However, it doesn’t hurt to indulge ourselves on special occasions. Why not treat yourself to lunch in a restaurant on your birthday with your colleagues? It’s only once a year.
Something will go up in value
This is probably one for collectors. It could pay off to buy an item you suspect will appreciate in value – perhaps limited addition memorabilia or a painting by an up-and-coming artist.
Although there are no guarantees, your treat could lead to a nice windfall if you decide to sell it on.
If you have to treat yourself… get cashback
Cashback isn’t an excuse to buy things you don’t need. However, if you are going to be naughty you might as well minimise the damage.
By putting purchases on a cashback credit card, you get paid every time you spend. The American Express Platinum card, for example, will give you five per cent cashback on purchases for the first three months up to £100.
Further, you could shop through a cashback website such as TopCashback which will pay you if you make a purchase through the site.
Word of warning
However, there are times when you'll probably regret making a purchase. For example, try not to buy anything expensive to cheer yourself up, if you’ve had too much to drink or want to show off to your friends. In most cases, this will not be money well spent.
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
