Splurging on purchases does not automatically mean you are breaking the bank to buy your desired products. When you carefully budget, you can purchase the items you really want while still saving on your overall balance.
There are several techniques you can utilize to ensure you are saving money while you splurge. Take the time to understand each method, as some are better suited to different financial or personal lifestyles. Whether you want to splurge more frequently on less expensive items or you choose to limit yourself to a strict budget, you can splurge and save in a variety of ways.
When you are splurging, it is important to remember you are only doing so because you have worked hard to save the money needed to fund your purchase. If you lose sight of the hard work you must complete to splurge on your favorite items, you may fall into a pattern of unnecessary spending, which can drastically decrease your savings. Alternatively, you run the risk of being too stagnant and never purchasing the items you want.
Tip 1: Maintain Excitement for Your New Purchases
You are more likely to splurge on an expensive item when you have had your eye on it for a while, such as a brand-new iPhone or an expensive purse. When you are saving the money needed to make this purchase, you are excited about the prospect of finally receiving something you have waited such a long time for. This level of excitement may wear off quicker than you expected once you finally have the brand-new item in your possession.
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One of the keys to splurging while saving money is to maintain your initial level of excitement toward your new purchase. There are always going to be newer phone models or a different line of purses, but you purchased the item you have for a specific reason.
Take time to be excited about your purchase and everything you achieved to have this item in your possession. The longer you stay excited about a new purchase, the less likely you are to spend even more money on a different splurge purchase shortly after the first. This allows you to build your savings account back up again before you commit to buying anything else.
Tip 2: Splurge More Frequently but on Smaller Items
If you enjoy shopping on a frequent basis, you may want to consider purchasing smaller items if you wish to maintain this frequency. By choosing to splurge frequently on smaller items, you are giving yourself the opportunity to spend less money over time, allowing for more purchases.
Shoppers who enjoy splurging may find their excitement for shopping increases when they are able to splurge on themselves more often by frequently purchasing small items. For instance, instead of spending $150 on a spa day, they spend $20 on a trip to the nail salon one week and then spend $30 purchasing face masks at the store the next time.
By spreading out your spending into smaller, frequent purchases, you feel as though you are treating yourself all the time, which can help you achieve the excitement you experience when you make a big splurge. Additionally, when you purchase small items more frequently in lieu of making one large purchase, you are ultimately saving yourself money. You can treat yourself two or three times a week for a fraction of what it would cost to treat yourself once to a large expense.
When you consistently splurge on larger items, you tend to pay a high price tag to achieve this goal. Your excitement over a new purchase is not proportionate to the amount it costs to have this item, which means you do not need to spend a fortune each time you decide to splurge.
If you end up having an unexpected expense and need to dip into your splurge budget, it is ultimately easier to adjust your budget if you only make small purchases. You may end up buying lunch a few times less versus not being able to purchase whatever large item you were saving up for.
Tip 3: Understand the Difference Between Splurging and Unnecessary Spending
Many shoppers mistakenly believe they are splurging when they are spending their money mindlessly on unnecessary expenses. For example, an individual may view buying a latte every day as a splurge item because it is something he or she enjoys doing.
While you can buy a latte whenever you feel like it, purchasing a coffee once or twice a day can become a huge expense if you track this purchase over time. Spending $5 a day on coffee five days a week equates to spending $100 a month, which is an unnecessary expense. This $100 could pay off your utility bills for the month or help you pay down your student loans.
To ensure you are saving money while still splurging on the items you want, remain purposeful and diligent about what you are spending. Often, you are going to be more excited about splurging on a latte when you make it a weekly treat instead of a daily one. The same mindset can be applied to buying takeout instead of making cost-efficient meals, purchasing new clothes or stocking up on the latest bestsellers at your local book store. Splurging every now and then is acceptable, but mindlessly buying items for the sake of buying them can harm your savings over time.
Tip 4: Establish A Splurging Budget Before You Buy
Budgeting out your splurges for the month may seem counter-intuitive because the whole point of splurging is so you can break your budget for something you really want to buy. While you are entitled to spend as much money as you want when you are indulging in a splurge purchase, you may end up paying for this choice when it comes time to pay your rent later in the month. You could end up needing help to pay your bills.
Splurging wisely is the only way you can guarantee you are saving money for necessary purchases without having to sacrifice purchases you want to make. Give yourself a splurge budget each month and track your expenses once you have purchased something to ensure you are holding yourself accountable. If you have any money left over in your splurge budget, transfer it to the next month.
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