Splurging sensibly

How to have fun while avoiding buyer’s remorse
By Alexandria Shetler

The Consumer Federation of America reported that the average American spends $2,000 a year on unexpected expenditures. In other words, Americans like to splurge (when their unexpected spending is not used for emergency situations, that is).

Luckily, splurging may not be as impulsive or as harmful as it sounds, as long as it is done in a thoughtful way. By building responsible splurging tactics into your discretionary income budget, you can reward yourself today while staying focused on your long-term financial goals.

Practice “sensible” splurging versus “mindless” splurging. Also, when you find yourself tempted to splurge, ask yourself, “Why do I want or need this?” and “What positive purpose is this going to serve?”

Local treats

Need some fun suggestions? Buy handicrafts you admire in your town’s gift shops or at the state’s many museum stores, treat yourself to a hunting or fishing trip through local outfitters, purchase that pottery dinner set you’ve always wanted in Seagrove, or savor old-fashioned candy at some of North Carolina’s iconic stores such as Mast General Store (locations include Waynesville, Valle Crucis and Boone).

Pack a picnic and head for a park or one of North Carolina’s beautiful beaches. Put aside some money for the relatively new Sea Life Aquarium in Concord or take a free historic tour of Halifax’s colonial village. It’s not hard to think of ideas — it’s simply a matter of budgeting for your splurges!

Asking this before you buy helps you identify emotional triggers and avoid buyer’s remorse. Here are some tips to keep your budget balanced:

Splurge for free. Indulge in free splurges to treat yourself. Time with loved ones is often the best gift you can give yourself. Whether it’s going to a free museum, a park to play with your kids or pets, or enjoying the sunset from a friend’s backyard while laughing the hours away, learn to master the art of savoring the little things in life.
Splurge towards others, within reason. Spending on others can make us happier than spending on ourselves. Consider using part of your splurging budget moderately for family, friends and a charity.
Splurge small and frequently. Social psychologists say that small and frequent splurges actually help people achieve financial happiness. The pleasure it provides quenches your thirst for splurging while improving your relationship with your money. It can also help you avoid big splurges. Do this by factoring small splurging into your budget. Set aside a certain amount of money each month for this.
Splurge from your savings and never use a credit card. Use the cash you set aside from your discretionary spending. Remember, the point is to spend only money you have, not money you don’t have.

Overall, just remember that healthy splurging habits are created by making smart decisions that positively affect your current well-being while maintaining progress towards your long-term goals.