Many people save money in a variety of ways, and with varying results. But what they don’t realise is that while every bit counts, a big splurge can easily offset those savings.

It’s easy to splurge if you’ve been skimping – your brain justifies it easily enough: “I’m already saving money via X, Y and Z. I can afford to make this more-expensive-than-average purchase.”

While it’s a very individual decision as everyone values different things, there are a few rules on splurging and skimping.

1. Splurge on what keeps you OFF the ground

• A mattress: You spend a quarter of your life sleeping. Get a good one that provides enough support for your back.
• Comfortable shoes: Get shoes that don’t hurt your feet. Dump the cheap flats and invest in a pair of specialised shoes that will be kind to your feet.
• A car that runs well, with enough safety features: Ensure tyres are in good condition, make regular engine check-ups especially before long-distance travel.
• Basic but comfortable furniture: Especially if you’re sedentary and work on computers all day long. Make sure you don’t slouch or you’ll get back pains soon enough.

This is the first rule for a reason. It’s solid advice, you should follow it before splurging on anything else.

2. Splurge on everyday necessities

• Underwear: Good underwear, especially bras make a big difference and last a lot longer than average-quality ones.
• Phone: But not those that cost RM3,000! You can get decent smartphones for under RM1,000. Note: It’s okay to like expensive phones, just use it for as long as you can before replacing it.
• Sunscreen: It protects your skin from harmful sun rays.
• Computer: Especially if your livelihood depends on it.
• Clothes: A pair of basic jeans and some good-quality tops will last you years instead of two washes in the washing machine.

3. Introverts – splurge on home comfort. Extroverts – splurge on social activities

Introverts need alone time to preserve their sanity and to be in optimal productivity mode. Extroverts get their energy from socialising, so advice like “stay-at-home/go-out less” doesn’t work here.

4. Splurge on experiences, not things

Easy to say, hard to implement because some things allow for good experiences and some experiences require you to purchase the right things for it. For example, a cave expedition would necessitate having a durable headlamp.

Try to be content though with what you already have. That way you’re not addicted to buying new things and or having new experiences all the time.

5. Splurge on quality advice and services

Yes, you can probably save hundreds of ringgit doing your own home repairs, but if you don’t have the expertise, that can easily turn into thousands of ringgit on future repairs. This advice applies to:

• Home and furniture repairs
• Car repairs
• Accounting services: Especially for businesses, you do not want to get in trouble with the law when it comes to taxes.

YouTube is awesome to learn new things – replace a flat tyre instead of spending on tow truck services, for instance. So check first if you can DIY, but if you can’t, shell out the expense to get an expert to do it for you.

6. Do NOT splurge on trinkets

The idea of trinkets i.e. things that remind you of positive memories is pretty cool. What is not cool is trying to capitalise on memories.

These are things like Pandora bracelets. Why on earth does one need 100,000,000 charms? And those forceful pictures that theme parks like to take of visitors that costs RM20+ with paper frames?

Trinkets should be free or have minimal cost. Pictures. A funny-looking stone from the spot you met your significant other. Your mum’s ring that she gave you before you left to study overseas. A framed picture of you as a baby making your dad laugh. Stickers from a child as her sign of approval. These are the best trinkets to cherish.

7. Don’t turn splurges into a collection

Accessories like tudung, hijabs, bottles of perfume, expensive watches, designer handbags, designer shoes, designer shades and the likes are classified as splurges.

They each have their function and can be useful, but you don’t need a collection of them.

8. Splurge when at small businesses, skimp at big businesses

Many big businesses enjoy huge profit margins. They invest their profits in marketing and advertising and in turn get more popular and make even more profit.

Small businesses, on the other hand, have much smaller profit margins even if the items are similarly priced. They don’t enjoy bulk discounts on raw materials. They also spend more, percentage-wise on overheads. If you must splurge, pick smaller businesses.

At no point should you ask for discounts. They need a decent profit margin to survive.

Conclusion

People are unique and value different things in life. Splurge smartly and only on things that matter to you. For everything else, skimp.

This article first appeared in ringgitohringgit.com

Suraya is a corporate writer-for-hire and the blogger behind personal finance website Ringgit Oh Ringgit. She is more of a minimalist, less of a consumerist, a konon DIY enthusiast, a let’s-support-small-businesses-over-big-corporations kinda girl. Prior to her current role, she worked in various capacities within the non-profit industry.