When to splurge is a big question. Is it okay to treat yourself? Just like individuals have different financial situations, different people have different ideas of what splurging is. Some people think of splurging as grabbing a coffee on the way to the office, or getting dessert while eating out. Others think of splurging as buying a pricey item like a designer dress, new gadget or vacation.
Whatever splurging means to you, you may feel a pang of guilt for spending a little more than you typically do. In my opinion, so long as you can afford to spend more than you typically do without jeopardizing your finances, go for it! TREAT YOURSELF.
Splurging every now and then can help you feel like all that saving has a purpose and can lead to fun now, rather than just a less stressful retirement. Life is supposed to have fun moments, and splurging sometimes can be part of that.
If you are going to splurge, you should also be saving. There are things that are spending priorities that need to be covered before you decide to make occasional splurging a habit. Being able to afford a new tire if you have a blow out will be far more rewarding than that new video game, handbag or twelfth pair of Nikes. A little excess really is okay, especially if you have planned for it.
PRIORITIES IN SPENDING
Aside from having money available for unexpected situations, it is important to have savings set aside for important life matters. Save for health like a copay or dental/optical work if your insurance doesn't cover it. Save for retirement because you don't want to work your entire life. Lastly, save for large purchasable goals that you have– like a college fund, an international trip, a dream wedding or a home.
Allocating a percentage of every paycheck to savings is a great way to start building up your savings consistently. Having this money put into a separate savings account helps you not spend it, as this money is not immediately available since it would have to be transferred to be used.
So if you have been dreaming of owning a fancy DSLR camera for months (or years), save up for it and make it happen! The sooner you start saving, the better. You can even save for larger splurges by minimizing smaller splurges– if you buy coffee on the way to work or always order lunch, switch to getting coffee at home or at the office, or take your lunch to work.
Save up, so that you can splurge when it's appropriate. Spending your money responsibly can make your financial health far less stressful.
National Splurge Day is June 18th– what kind of splurger are you and what are you currently saving up to splurge on?