We often think of splurging as a bad thing. Spending money on something that wasn’t planned, or that isn’t needed (even if it is planned) is often looked down upon by savvy savers and financial experts alike.
Without splurges, however, life wouldn’t be nearly as fun. Plus, with carefully considered splurges, you can actually improve your finances.
Here’s why you should splurge sometimes (and how to do it responsibly):
Occasional Splurges Can Prevent Bigger Problems
One of the issues with living deprivation-style for a long period of time is that it’s wearing. You get to the point where you’re tired of scrounging and sacrificing all the time. It’s a never-ending cycle that can be disheartening — and result in you giving up.
If you give up because you see your sacrifice as endless, you might just decide to throw it all away. Some people actually end up in worse shape in the long run, because they give up so spectacularly that they end up spending more and staying in debt.
A splurge can prevent this problem. Occasional splurges, even if small, can help you enjoy life as you go along, and keep you from feeling so discouraged that you just give up. They’ll help you stay the course by preventing you from feeling deprived. You’ll be motivated to stick with your program, which will benefit you in the long run.
How to Plan for Splurges
That being said, you do need to plan for your splurges. Budgeting for non-essentials is a good way to keep your spending under control now and in the future.
You might plan for a splurge by looking ahead to a book you want to buy, or a video game that’s coming out soon. Perhaps you want to eat out at a nice restaurant or see a movie.
These are relatively simple splurges that can add a little spice to your life, as well as keep your mind off deprivation and sacrifice while you get your finances in order. Make sure you plan ahead, though, so that you have the money for them.
Create a “Fun Fund”
Another thing I like to do is set up a “fun fund” that allows me to be more spontaneous in my splurges. I regularly set aside money in this fund, and when I want to do something spontaneous, I pull whatever money I need from it. This makes it possible to plan for splurges, while still keeping the spontaneous nature that often makes splurges so much fun.
The important thing is to make sure your splurges aren’t putting you further in debt. If you can earmark a relatively small amount of money each month for splurging, it can help you stick with your overall financial plans.
Don’t forget to enjoy yourself a little. It doesn’t have to be big — just something you enjoy and don’t need for survival. A little splurge now and then will help you stay motivated as you work toward your other goals.
Do you splurge sometimes? How do you plan for it?
Editor's Note: Did you know about the service called $5 meal plans? For $5 a month, they send you recipes of delicious, healthy, yet cheap food that costs just $5 a meal.
Several of my friends signed up and they are able to eat at home more because the instructions are easy to follow, making everything convenient. The deal also comes with grocery shopping lists, which saves them so much time. Check it out yourself by clicking here and you too may be able to save more and become healthier at the same time.