Should I Spend Less on Luxuries?

Most of us spend some of our money on luxury items as well as buying necessities. This means that we could be spending more than necessary. It can therefore be worth thinking about whether you should be spending less money on luxury items. This can depend on your circumstances though.

How much is spent on luxuries?

It can be good to start by working out how much money you spend on luxuries. This is fairly easy to do because you will be able to look at your bank statements and separate out all of the necessary spending. This will include things like rent or mortgage, utilities, contracts, loan repayments, travel to work, food, work and school clothing etc. Anything left will be a luxury item and you can add these up. It might be rather a shock as to how much you spend on these, but this is okay as long as you can afford to spend this much money. However, if you are wondering whether you should spend less on luxuries there is probably a reason for this. It might be the case that you are struggling to make ends meet each month, that you would like to save some extra money or you want to repay some loans.

What else could the money go towards?

It is therefore good to have a think about what you could spend the money on if it was not spend on luxuries. It would be wise to prioritise buying necessities and make sure that you have enough money to pay for all of those before you buy any luxury items. You also need to think about the fact that if you have loans, then you might want to pay then off to save money. With some loans, such as payday loans, they are flexible and it is possible to make overpayments so that you can repay them early and save money. Some loans however have a charge if you want to do this and so you need to investigate this to make sure that you are not paying more in charges than you are saving in interest.

You may also be able to use the money to put into a savings account. It can feel good to have some savings behind you. It means that you will have money to fall back on if you need to buy things in an emergency. You will be able to pay for items rather than having to borrow the money. It will also be there for you if you need to have money, perhaps if you lose your job or are unwell and have to manage on sick pay.

It can be hard to give up luxury items. They are our treats that we buy to make ourselves happy. Therefore, giving them up can feel tough. However, if you have thought through the reasons that you should give them up, hopefully this will help to motivate you and you will think that it is worthwhile. You should be able to feel more positive about giving up some things if you know that you will be getting something good in return. If you know that you will be able to manage your bills more easily, save some money or repay some loans, that will hopefully help you to feel that it is worth it. Of course, you do not need to give up all of your spending on luxuries, you can still treat yourself a bit. It is up to you of course, how much you decide to treat yourself. You may also find that there will be some months when you will be able to afford to treat yourself more easily than others and so that will make a difference as well.