The Update

When Should I Give in to the Urge to Splurge

Life is boring when you follow all the rules, all the time. Yes, even the money rules. Fret not, because you sometimes can, and should, give in to the urge to splurge. 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 feel super-deprived. This can prompt you to overthrow your budget 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.

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 important to note, though, that this applies only to needs and items you’ve been saving to buy.

When It's a Quality Item that'll Outlast a Cheaper Version

Sometimes, a splurge is an investment for the future. 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.
• 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.
• 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.

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 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.

Indulge 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, sometimes it’s OK to give in to the urge to splurge! Use this guide to learn when and how to indulge responsibly.

Free Financial Coaching

Do you want to create a budget to make sure you're set when the splurging bug bites? RGCU offers Free Financial Coaching for our members. Our certified coaches can help you develop a budget that fits your lifestyle.