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You were having a great time in the mall just window shopping and looking around. Then suddenly you stop. You saw this item you have wanted to own all along. However, the frugal in you is hindering you to make that purchase. Your head is battling between needs and wants. Even more, you keep asking yourself if you have the money to buy it.
Trust me when I say, been there done that! If you are on a diet, there’s a cheat day where you can eat all the carbs you want. In personal finance, you too can also have that cheat day where you can buy whatever you want. Splurging is not bad after all if done right. For one, this can affect your happiness index. Of course there are items that can make us happy. And splurging and enjoying it can actually help us be on track with our budgeting goals. Hence, if you are in the mood to splurge hold your horses first and read on how to be wise in doing so.
Tip 1: Splurge without cost
There are some splurges that don’t require any cost at all. For one, there are free indulgences like spending alone time walking in the park, taking a run, cuddling your pets and your loved ones. You can also just be at home reading your favourite book or perhaps watching your favourite movie. Be creative and know the things that you will enjoy most. Not only will you feel happy but your pockets too.
Tip 2: Splurge on experiences and people
Material goods are good but experiences and people are better. For instance, you can spend to take your family out on a very special dinner. You can treat your friends on a movie or a game night. It is always best to keep happy memories. And these memories last forever rather than items that can be of use for just years. Furthermore, the emotional connection and the happiness from your loved ones are way more rewarding.
Tip 3: Splurge within your budget
If you don’t want to feel remorse after splurging something, make sure that you splurge within your budget. You can do some smaller splurges. Smaller luxuries can do a big difference in how we feel. It will also make us feel good and pampered. This is like having a cheat day in your finances but you need to make sure this is something you can afford.
Tip 4: Make use of rewards
Credit cards are full of perks and rewards. Some will give you an extra cinema ticket or meal if you happen to spend this much. If you were able to spend that much money on necessities like your groceries, you can t least splurge on your next movie ticket or meal. You can even accumulate points that you can exchange for an item or two. There are also credit cards that give discounts to some stores. Aside from credit cards, there are also loyalty cards that you can use to accumulate points that you can exchange for something or give you discounts on your purchases. And I’m personally a fan of these loyalty cards.
Tip 5: Save up
If you are aiming to splurge on more expensive items, it would be best to create a separate savings account. Stash away some amount per pay day and deposit it to this account. However do not forget to put up money for your other savings and investment. At least when you buy your highly coveted item, you will not feel guilty that you splurge this much because it is simply the tip of the iceberg of your savings.
Tip 6: Shop smart
There are varied tips for you to be able to get the most of your buck. You can always wait for better deals of the item you love most. You can also buy during off-season so that your items are discounted. You can also buy already used items from thrift stores or online shops. True the items might be slightly used but for sure the price is way different if you buy the item brand new.
Splurging can be good for your finances. At least once in a while, you give in to some shopping and buying something that might be close to a want. However, you also need to somehow guard your money while doing so.
P.S To those doing the 52 Week Money Challenge, did you deposit the next amount yet?
P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.
P.P.P.S I am also sharing my stock market secrets and information via these resources.
P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.
P.P.P.S I am also sharing my stock market secrets and information via these resources.