3 Ways to Afford More Luxury Items
If you’re like most people, you suffer from the proverbial champagne taste on a beer budget. Whatever you’re thirsty for is often far too expensive to afford. That half-full glass can sometimes look half empty.
But what if you could afford a luxury item or two without descending into massive debt that would be impossible to climb out of? What if there were ways you could be a have with have-not means?
Nothing will always be out of your financial reach, no matter what. That SpaceX voyage will likely be a bigger bite than you can ever chew. But there may be some more down-to-earth extravagances you can acquire if you make a concerted effort.
There’s no shame in wanting a bigger house, a more excellent car, cutting-edge tech, or designer clothing. Here are a few ways you may be able to afford more luxury items in your real world.
Earn a Peak Credit Score
Luxury items come with expensive price tags. Credit is a frequently used tool for financing a major purchase. That’s especially true when you’re buying something you can’t pay for in total upfront.
Credit — whether a car loan, mortgage, or unsecured credit — revolves around the strength of your credit score. The higher your score, the less risk the lender has to let you use its money. For the privilege, you pay the lender interest, which is also based on your credit score.
To finance a major purchase, you must take that credit score to the mountaintop or as close as possible. If you’re starting with a low score or no score, no one is going to take a risk on you. That doesn’t mean you can’t ascend, but you’ll need to start with small steps.
Consider applying for a secured credit card to build a solid credit score. To use the secured credit card lender’s money, you deposit enough of your own cash to make you a reasonable risk. Use the credit card wisely, and you can see your credit score rise within months.
Paying the lowest interest rate possible when financing a high-ticket item can save thousands over the life of the loan. That means you need to boost your credit score as high as possible. It may take time to get where you need to be, but it’s well worth the reward.
Save Some Cash
Luxury items are usually worth waiting for. There’s something about the chase that makes the catch even more satisfying. So if you aren’t in a rush and don’t want to incur debt for your indulgence, save up for it.
Set up a particular savings account and start depositing as much as you can as often as you can. Think of it as a Christmas Club for a holiday further away.
Cash will also come in handy if you plan to get a mortgage for a more opulent home. A more significant down payment means a smaller mortgage. That may make your monthly payments affordable enough to fit your regular budget.
Depending on the item, you can always take advantage of traditional layaway arrangements. That coveted item won’t go home with another buyer, and you can make cash payments until you have paid in full. Keeping your eye on the prize should help you stick to your payment routine.
Saving your hard-earned dollars for something expensive gives you time to make sure you want it. Moreover, you’ll have to sacrifice other things to reach your goal. But when you do, you can make the no-guilt, interest-free purchase of your dreams.
Practice Patience, Persistence, and Perseverance
One of the differences between people who can afford luxury items and people who cannot is timing. The former can buy them on impulse. The latter, which probably includes you, must practice patience, persistence, and perseverance.
You may need to be patient while raising a credit score or saving pennies to buy what you crave. Once you’re prepared to make the purchase, a little patience may save you a lot of money. Wait for the item to go on sale or for generous incentives to be offered, like interest-free financing or cash back.
Use what you have, like driving your own car into the ground before buying the one you want. You will also need to show some persistence for the sake of the targeted luxe purchase. Resist the temptation to accumulate other items in the meantime by opting for quality rather than quantity.
Persevere your dream of owning the magnificent instead of the mediocre by considering some alternatives. For example, perhaps you could realize your dream sooner by leasing the item rather than purchasing it. Or maybe you could buy a gently used extravagance to make it more affordable.
Putting yourself in the position of purchasing luxury items may take patience, persistence, and perseverance. But if you can practice the three Ps, you just may be able to buy what you desire.
Buying the Dream
If you want to buy luxury items, you have to plan, sacrifice, save, and strategize. Since you’ll need to do all that work, ensure you’re doing it for the right reasons.
Keeping up with the Joneses is probably not reason enough. Just owning expensive stuff isn’t the key to happiness for most people.
But buying something that really speaks to you, no matter which else, might be worth a heroic effort. After all, extraordinary wishes call for exceptional measures.