It sounds counter-intuitive, but a splurge can be good for your budget. If you plan for the occasional luxury, you avoid the risk of overspending when you reach frugal burnout. Give yourself room to splurge, but be smart about it, too.
Photo by PublicDomainPictures
Most experts recommend a little breathing room in your budget. If you make a budget that’s way too tight, like I did, you’re more likely to blow it by overestimating your willpower.
When you give yourself permission to splurge, you avoid wrecking your budget and overspending. But splurges will vary, depending on what your financial situation and goals look like. The Muse offers a few points for making the most of your splurge:
Count an Upgrade as a SplurgeBaker says part of knowing when something is a splurge is identifying whether it’s a need or a want, which feels a little more decadent and special.
Splurging on an upgrade, however, can be a little of both. For example, a need might be a set of wheels to get you to and from work — but the want is spending enough to get there in style.
Remember That Experiences Count, TooYou can get a lot of bang for your buck from an experiential purchase, whether that’s a weekend getaway with old friends or tickets to that reunion tour for your favourite band.
Don’t Let Emotions Control Your SplurgeOne problem that Concepcion sees with many splurges is that they are purchased in the heat of the moment — and therefore aren’t always what you might have wanted had you put more thought into it.
The piece also touches on hedonistic adaptation, something we’ve discussed before. It’s complicated, but it basically means getting used to what you have, however little or much that may be.
When it comes to splurging, too much of a good thing might not make that much of a difference in your level of happiness. So if you really want to get the most out of your splurge, change things up. Consider spending your money on something new.
Most importantly, you want to budget for your splurge without wrecking your finances, so make sure it’s a luxury that’s within your means. And for more info on how to make the most of a splurge, check out the full post over at The Muse.