When Should I Give in to the Urge to Splurge?

We talk a lot about being smart with your money – prioritizing savings, minimizing debt, and keeping to your budget – so you might wonder, is it ever OK to give in to the urge to splurge?

Life is boring when you follow all the rules, all the time. Yes, even the money rules. Sometimes can, and should, give in to the urge to splurge. It’s just important that you do so sensibly. Here’s when and how to indulge responsibly.

When you’re feeling overly deprived

If you’ve been strictly sticking to essential-only purchases for a while, you may start feeling deprived. This can wear on you over time and might cause you to simply throw your budget out of the window and trash all your hard work to this point. To avoid this, allow yourself to make a conscious decision to splurge on a large purchase or experience, even if it doesn’t necessarily fit within your budget. The key is to be conscious and intentional with your splurge and don’t simply let go of all control.

Be honest with yourself and your recent spending to determine whether you should be splurging at this time.

When there’s an opportunity you may miss

It can also be OK to splurge when there’s a massive sale on an item you need to buy anyway and waiting it out means missing out on significant savings. It’s ok to shift your timelines and even your budget to spend on an item now instead of in a month or two if it means significant savings. It’s important to note, though, that this applies only to needs and items you’ve been saving to buy. It’s not “saving” on an item you weren’t planning to buy that you bought just because it happened to be on sale. That’s just extra spending, no matter how much it was discounted. Be intentional and purposeful when taking advantage of a sale or other opportunity.

When it’s a quality item that will outlast a cheaper version

Sometimes, a splurge is an investment for the future. There are certainly times where pending extra for a name brand item as opposed to the generic version is a waste of money. However, there are other times where spending more up front for a higher quality item will save you money in the long term. Here are some circumstances where it may be a good idea to go for the more expensive option:

• Quality clothing. High-quality clothing that is not uber-trendy and can last for years may be a worthwhile reason to splurge. If you aren’t concerned with the latest trends or a piece of clothing is one that you’ll wear for years, it could be worthwhile to spend a little extra.
• Appliances. Here, too, it can be a good idea to spend a little more on a purchase that will last longer than its cheaper counterparts. If a top-end appliance will last for years longer than a cheaper version that you would then have to replace, the total cost of the cheaper version might be more expensive than paying for the high-quality appliance to start with.
• Health care and food. If you have a choice, you may want to choose a more expensive health care provider over a less expensive one that offers subpar care. Similarly, it can be worthwhile to spend a bit more on a more healthful diet. Health costs can increase exponentially over the years if you are not taking care of yourself and cutting corners when it comes to keeping yourself healthy.

When it’s a once-in-a-lifetime occasion

Another time you may want to go over budget a bit is when you’re celebrating a once-in-a-lifetime occasion. Your wedding, the birth of your first child, and your college graduation are all examples of celebrations that deserve to be honored. This doesn’t mean you need to swipe your way into deep debt, but you can forgive yourself for overspending a bit on these occasions as you know they will not present themselves again for additional overspending. Balance is key – some moments in life are worth spending a little more on, but life goes on after the big moment, so make sure you don’t get carried away!

Indulge responsibly

Above all, when you do make the choice to spend a little extra, make sure that you do it responsibly:

• Keep the splurge proportional to your budget.
• Remember that an experience can be an indulgence, too.
• Be sure to play catch-up in the months following your splurge if you’ve dipped into your savings to fund it.

Yes, it’s hugely important to be responsible and careful managing your finances – but sometimes it’s OK to give in to the urge to splurge! As long as you are conscious and intentional about your extra spending and take the appropriate steps before and after, it can still be part of solid money management. Use this guide to learn when and how to indulge responsibly.