How to Spend Money Wisely & Still Afford Luxury

1. Have a plan

My first tip is to have a plan and set up a wish list. Think carefully about what items you want to add to your wardrobe and into your collection, and make sure that you set up a plan of how you can afford that item.

Is it saving an extra $10 or $25 a week or a month over the next few months? Is it working overtime or having another job besides the main job that you currently have?

Make sure you have a wish list for things you want to purchase in the future, as well as a plan for how you'll get there. For example, I'll be turning 30 in just a few months.

So leading up to this, I knew that I wanted to get a pair of bigger diamond earrings. I knew that this diamond pair of earrings would commemorate this 30th milestone for me, and I knew that this was something I could wear daily because it is a classic thing to have.

Leading up to this, I thought, this is my goal. I have this amount of time until I turn 30, so how much can I save leading up to it so that by the time I turn 30, I'll be able to purchase it without going into debt?

It could be a designer purse for you; it could be a laptop; it could be a car; it could be anything that you have a goal that you're setting, something that you're striving for and working towards. So make sure you have a wish list and set up a plan for how you'll get there.

2. Make a budget

Make a budget and limit unnecessary spending. I know budgeting is not necessarily the funnest word out there, but it's something that we have to do. We need to know how much money is coming in and how much money is going out.

From there, we can see if there's any way that we can reduce our spending on any of the categories that we have and use that extra saving to put into a luxury purchase that we're aiming for.

3. Look for used items

If you're wondering how to afford luxury items like designer purses, check into getting it pre-loved and going into consignment stores or purchasing it online from websites like The Real Real, Yoogi's Closet, or Fashion File.

I own a few designer purses, such as Chanel and Louis Vuitton. I have purchased those pre-loved.

Buying second-hand can save you a lot of money. Make sure that you're responsible while you're at it. I bought one of the designer bags I mentioned before pre-loved. Compared to if I had bought it brand new, I saved a ton of money. I bought it for around just under $4,000.

If you're buying it brand new now, I think the cost for Chanel pieces has considerably gone up because of the price increases, and I think I want to say it's around $8,000 brand new. Consider going the pre-loved route.

If you are considering buying a pre-loved luxury item, please do your due diligence. Make sure you research what the serial codes are, what it's supposed to look like, the stitching, and things like that. You could also do authentication and send pictures to authenticators online and pay for that service.

4. Sell items you have

Sell items you are no longer using or don't need. For example, if there are items in your closet that you haven't used over the past six months to a year, if there are items around your home, whether it be kitchen gadgets or books that don't have a purpose anymore, consider selling those items on places like Facebook Marketplace, have a garage sale, sell those items on Poshmark, etc., and use that money towards a luxury purchase that you're trying to save up for.

As some of you may have heard, one person's trash is another person's treasure. Someone else will get value out of your unwanted goods while you're also earning money back.

5. Think before buying

My last tip before purchasing a luxury item is to make sure you stop and think about it before you jump the gun and spend money on it. Try to think about it for the next two weeks to a month or even longer if you can.

Try to think carefully. If this is something that you want and need, and it is something that you have to have in your collection, ask yourself if it is worth the money you will be spending on it.

For example, before I bought my MacBook, I thought long and hard if this was something I needed. Before I bought my MacBook, I owned a laptop I've owned since university, over ten years ago.

Now that I have my new laptop, I know this will also last me for a long time. Try to think carefully, spend the next few weeks or even months thinking carefully about it, and do your research to see if it's worth having.

How to spend money wisely

You can spend wisely and still have luxury items. Just be sure to think about it before spending a lot of money, and you plan for the expenditure without going into debt. What is your favorite luxury item, and how did you save for it? Share your tips in the comments below.