On March 30, 2019 I came up with the idea of #SachsBeforeSaks, prioritizing financial well-being over spending (the hashtag is a play on the names of Goldman Sachs bank and Saks Fifth Avenue store). Fast forward to the launch of Luxe and Leisure in late 2020, now we’re fully focused on enjoying life’s luxuries through #BudgetLuxe finds and thoughtful purchases.
While this pandemic has made us all rethink how we earn and budget money, many of us can agree that our spending was consistent. Whether our retail therapy helped us cope with the stress of working from home, isolation, or sheer boredom – delivery drivers became essential in more ways than one.
I work full-time and have a family to take care of and although I’d love to think that I could just stop spending completely, I’d be fooling myself. So instead, I want to bring attention to how you can enjoy life’s finest without the guilt of impulse shopping. That’s why starting February 1, 2021 we’ll embark on a savings challenge leading up to the June 18th in celebration of National Splurge Day! Here are the rules:
- Download and complete your luxury wishlist (click here)
- Choose one item from your wishlist. It can be your most desired item or just one that fits our saving timeline
- Save between February 1- June 18th
- Hit the (online) store with us on June 18th in celebration of National Splurge Day!!!
Now let’s break down that savings goal!
First things first, how much will this item really cost? Include sales tax, shipping, reseller fees, or anything else that might impact the final amount you’ll spend.
Next, break it down per month.
Total cost of wishlist item divided by 4 = monthly amount you’ll need to stash away for your purchase
Now see how that monthly amount fits into your bigger budget. Consider how often you get paid and of course, prioritize necessities. Ideally, you should only be spending about 5% of your monthly income on clothing and accessories ( to find that number, multiply your take-home pay by 0.05). If the monthly amount that you need for the wishlist item exceeds 5% of your take-home pay, determine where else you can safely cut spending.
While we’re talking about cutting things out, let’s come up with a contingency plan for your weak moments.
List 3 things you’ll sacrifice in order to save and 3 ways you’ll use to satisfy that ‘need’. For example, I plan to cut out buying new skin care products since I have so much stocked up. So when I get the urge to buy something new, I’ll go back to an old favorite or try out one of the many sample products I have.
Stretch yourself. Consider saving a little more money for one of the following:
- Saving 10% more to donate to a non-profit in your city
- Saving double the amount you plan to spend so that you have some cushion after the splurge
- Pay off a small debt before the splurge
The #SachsBeforeSaks challenge is meant to be fun, so don’t let the ‘rules’ intimidate you. You deserve a reward; we’re just taking steps to do it guilt-free and responsibly!