‘Funflation’ is a risky financial trend. How to pay for those pricey experiences without going broke

Not everyone is clamping down on spending these days.

‘Funflation’ is just the opposite, best defined as discretionary spending on ‘experiential’ things like expensive concert tickets ($1,000 for Taylor Swift?!), beautiful fashion, travel, flashy cars, nights on the town and the like.

‘Funflationers’ use disposable cash, savings and credit card limits to make it all happen. In some cases, they'll skip out on essentials like a weekly grocery shop or an RRSP contribution to pay for a bump-up to business class or a night of fine dining.

As a long-time financial educator, and financial well-being expert, I’ve stressed the importance of spending money on what matters most to you, but not if it’s going to leave you broke and stressed. Here are a handful of ways to balance your fun while sticking to a budget.

Maximize rewards programs that align with your priorities

It could be travel points, makeup freebies, buy-one-get-one book buys, gas discounts or groceries.

Choose the points and rewards programs that align with your funflation vision. One of my students goes all-in on air travel points because her all-time favourite experience is a laydown pod for flights over seven hours.

Another student, who used to be a chef, focuses on grocery points so that he can host elaborate Instagram and TikTok-worthy dinner parties. A singer-student switched her entire banking over to be eligible for early-bird Taylor Swift tickets — which she landed!

Grab your wallet, empty your junk drawer and car console. Line up the loyalty, credit and points cards to see what you’ve already started collecting toward. Do the same for any apps on your phone. Could you shift your buying habits, banking and regular expenses to align with the ultimate fun rewards programs for you?

Watch out for fees! If you’re paying a fee to belong, make sure you’re extracting significantly more value from the program than from what you’re paying into it.

Find fancy experiences and things for less

Maximizing your fun is easy when you're a deal hunter, couponer and sale-seeker. Some of the most beautiful clothing I have, that I’ve worn on national television on dozens of occasions, is from second-hand designer shops.

Some of the most incredible travel experiences I’ve had have been because I waited for an off-season sale and used up credits and points.

My first home was featured in the homes section of my local newspaper because I furnished it beautifully with second-hand everything for $3,500. The digital coupons I’ve used for massages, facials, restaurants, car tires, baby gear and more have saved me thousands over the years.

The extra due diligence I’ve done in shopping for a used car has enabled me to purchase vehicles I really want at a fraction of the cost of new.

If fancy is your jam, just find a way to be frugal about it.

DIY and barter in order to have more fun

I find funflationers can be quite creative.

Because they are crystal clear on how they want to spend their money, they go the extra mile to DIY what they don’t want to pay for, and barter for the rest.

A few recent examples in my community are DIY home repairs (thanks to YouTube) and bartering web design services for in-home or virtual fitness training.

Jot down what you’re currently paying for — house cleaning, yard maintenance, babysitting, grocery delivery, gym memberships, private lessons, meal prep — and consider if a DIY or barter alternative can get you to your splurging target.

Maximize the fun with your finances are in order

When regular weekly or biweekly savings habits are worked into your budget, a great deal of fun can be had.

I recommend setting up a big-ticket savings account and have money automatically transferred into it on payday. Also, if you’re purging and selling off unused possessions, toss those proceeds into the fun account. Spending money on fun always feels better when you’ve got savings earmarked for that purpose.

Another great idea is to work regular ‘fun’ into your monthly budget such as an allocation for seeing a movie, having lunch (maybe not an expensive dinner) with a friend, booking a massage or taking a class.

Saving for the long term, however, is key category you don’t want to miss in your budget — otherwise your future self won't be able to afford any fun down the road.

By preparing well in advance, you'll find yourself savouring all the fun just a little more when you know you’re maximizing your dollars — and staying out of debt.

This article was originally published in The Star. Lesley-Anne Scorgie is a Toronto-based personal finance columnist and a freelance contributing columnist for the Star.