a day ago
Splurging is not the enemy. Splurging on impulse is
In over 10 years of blogging and talking publicly about money, I've found that people often equate financial savvy to being a miser. After all, conventional money wisdom is simple: 'Save more, spend less.'
But being financially savvy doesn't mean saying no to all luxuries or spending only on cheaper items. Instead, it means knowing when to say yes or no, and how to do so with intention.
Over the years, I've developed a mental checklist to help me make up my mind with any big splurges – whether it's tickets to Taylor Swift's Eras Tour, a S$300 dress, or a holiday trip overseas for my entire family.
A key concept I use to guide my spending decisions is that of utility cost.
VALUE IS MORE THAN THE NUMBER ON THE PRICE TAG
I first learnt about utility cost during economics classes back in junior college, and it has stuck with me ever since.
With any big-ticket purchase, instead of looking only at the price tag, I think about its utility. How many times do I expect to be able to use it? Can it offer me prolonged enjoyment, repeated uses or other long-term benefits? What are some unexpected costs I could incur in the future if I were to choose a cheaper alternative today?
A cheap mattress, for instance, might hurt my back and lead to visits to chiropractors and masseuses. A S$20 running shoe with minimal cushioning or support could cause me injuries. A cheaper smartphone may come with lower camera specifications that would require me to either compromise on my work as a content creator or purchase additional equipment to make up for it.
That was why I bought my wedding gown from Taobao, an online marketplace known for low-quality, super-cheap buys. I was expecting to wear it only once – and true enough, the dress has been gathering dust in my wardrobe since then.
In contrast, I recently paid S$350 for a semi-designer dress from Bangkok because I expect to wear it more than 10 times for several upcoming occasions. For me, this higher utility justified the higher cost.
This often gets missed in the oversimplified 'save more, spend less' narrative. It's not just about the money we're parting with; it is about how much value we're getting in return. Buying an expensive shirt or bag isn't necessarily a bad money decision in itself; only using it once or twice is.
THINK LONG-TERM
One easy way to help you gauge if something is worth the splurge: Divide the cost of the item by the number of times you (realistically) expect to use it. Otherwise, you can also define this simply as the value or satisfaction you expect to gain from the purchase.
I hardly own any branded goods myself, but I recall how a good friend of mine previously bought a S$3,000 branded handbag which she used daily for her first three years of work.
In her case, dividing the cost of her bag by the amount of time she used it extensively (S$3,000 divided by 3 years or 1,095 days) means her rough cost-per-use hovered under S$3.
The bag also gave her plenty of other intangible benefits – for three years, she didn't have to switch bags or rotate her items between different bags, and she refrained from buying new fast-fashion bags. The bag even served as a conversation starter for her at networking events. To her, all this made her handbag more than 'worth' the S$3,000 she paid for it.
When working out the cost-per-use value of a designer item, it helps to think about what it'll do for you, how versatile the piece is, whether you'll tire of it quickly, and if you're paying more for the logo than the craftsmanship.
THE TRUE VALUE OF EXPERIENCES
That's all well and good for consumer goods, but what about intangible experiences?
Let's take travel for an example. I've had trips where I came back exhausted, overspent and underwhelmed; I've also taken holidays that helped me reconnect with myself, bond with loved ones, and return home recharged.
The difference was almost never in how much money I spent, but rather in how well the trip was planned in accordance with what I truly enjoy. For instance, I've realised that I don't particularly enjoy or value visiting crowded tourist hot spots just to see, do or eat things popularised by social media.
So, I no longer chase bucket-list destinations or viral TikTok itineraries. Instead, I focus my spending on trips that offer real value to my well-being.
KNOWING WHEN TO SAY NO
Still, we all have our weak spots, things that make it easy for us to get caught up in our own excitement. My system seems to have worked well for me over the last few years, with one exception: e-commerce livestreams.
From beauty products to, home gadgets, there always seems to be a constant countdown, limited-quantity offers, and hosts who know exactly what to say to make my self-control disappear.
I've often caught myself hovering over the 'buy now' button during a livestream, feeling like if I didn't act in that moment, I'd miss out on the best deal forever. On these occasions, my trusty utility cost framework often ends up taking a backseat to impulse. I start spending emotionally rather than intentionally.
Once I realised this, I stopped tuning in for the sake of my wallet.
That's not to say livestream shopping is bad. In fact, I've found some great deals this way. But if continually exposing yourself to your weakness leads you to busting your budget more often than you'd like, it's time to re-evaluate that self-exposure.
After a while, I started tuning back in to livestream shopping again – but only when I was sure I could remind myself that not every 'good deal' is good for me.
Now, whenever I find myself gripped by the urge to grab yet another 'exclusive', 'limited time' offer, I ask myself: Was I already planning to buy that item before entering the livestream? If the answer is no, then chances are I don't actually need it.
FINANCIAL PRUDENCE IS NOT DEPRIVATION
Spending mindfully doesn't mean saying no to all big purchases. It means learning to say yes strategically to only what we really want or need.
This is especially important today, when we are constantly bombarded by online content and messaging telling us what to buy, wear or experience. This can spell financial stress for us when it leads us to shell out for big-ticket items with little consideration .
That's where a simple mental framework – like utility cost – can help.
Being financially responsible isn't about being miserly. It's about making sure we feel good about the things we choose to splurge on, instead of wallowing in the guilt or regret of post-purchase remorse.
At the end of the day, the goal shouldn't be just saving more and spending less. Instead, we should ask ourselves: What matters most to us?
