I just saw a great study on this, so I thought we’d discuss — do you leave room in your budget to take advantage of sale prices? Do you do it in a disciplined way (“I have $300 to spend for fun purchases, no more!”) or is it just part of your budgetary cushion? Which sales do you splurge on?
This seems like a great follow up on our recent post about how to make a budget: Of course it’s great to be aggressive with your savings, student loan payments, and investments — but be wary of trying to live on too tight of a budget if you don’t have to. Probably the biggest long-lasting effect the recession had on my money habits is that I leave enough room in my budget for unexpected sales on household items. When I’m in the grocery store or the pharmacy, I look for items with good sale prices and then purchase them even if we don’t need the item immediately (provided we have the storage space). The headline of the HuffPo article I saw about a relevant study says it all: “Poor People Have To Spend More On Toilet Paper Than The Rich: Study.” The study found that low-income households don’t have the cash to buy in bulk, so they end up paying higher per-item prices; the article also mentions that poorer people often end up paying more for “discount” toilet paper than richer people do on “premium” toilet paper. (A lot of readers agreed with me when we talked about everyday splurges: sale prices or no, life is too short for cheap toilet paper!)