Similar to when most people are on a diet, it can be difficult to stick to the diet day in and day out without feeling deprived. It's the same thing with living a frugal lifestyle. If you cut everything to the bare bones in an effort to get out of debt or save for something big, it can start to feel restrictive.
So, unless you're on a really tight budget, you'll want to plan your splurges in order to keep your budget on track. It's much better to plan for your splurge than let it be a budget-busting experience (although you can use these tips to help you avoid impulse spending).
The definition of splurge is:
spend (money) freely or extravagantly
That sounds counterintuitive, doesn't it? Usually the words “splurge” and “budget” aren't really in the same sentence.
So what can you do?
Plan a budget line item for splurge money (or blow money). It doesn't have to be a ton of money (and you can use these money-saving tips to make it go further).
Since, your splurge is budgeted, there's no need to feel guilty, and it will help you stay on budget in the long run.
Examples of splurges:
- Going out to eat
- Soft Drinks
- Coffee from Starbucks
- Cable/Satellite TV
Each family will be different. If you're trying to get out of debt or save money for an emergency fund, you likely won't have as much disposable income as someone who is on track financially. Plus, every family's definition of a splurge/necessity is different too.
What about you? Do you plan for splurges? What are some examples of splurges you budget for?