Splurging has Benefits!

A surprising interview with Kelli Grant from SmartMoney.com showed that splurging can have positive benefits on people who are trying to save their money during tough financial times.

So what are the secrets to a splurge that won’t “bust the bank,” overstep your boundaries, but will instead produce positive benefits for you and others?

Contributor, Kelli Grant, gave four suggestions for “beneficial” splurging that everyone can follow, especially during the upcoming holiday season:

First, splurge on a budget! It sounds like oxymoron, but it’s not. It should be no surprise that studies showed that splurging releases endorphins, initial excitement in your brain—creating a happier mood. So with that in mind, the idea of choosing an item, a trip, a gift that you KNOW will make you and/or others happy is the first step in splurging on a budget. Set your sight on a goal, shop for the best price (versus stabbing at an impulsive purchase at a higher price), and begin to save for that item or trip or gift. Your daily/weekly monetary sacrifices will have a purpose and your excitement will build until you can make the purchase. (Remember “lay away” purchases? You chose the item, it was set aside and you paid for it in increments, but only possessed the item when it was paid in full? Same concept.)

Second, seek daily impact. Splurge on something that will have lasting value to you. A beautiful piece of jewelry you only wear once will not be enjoyable over time. When you think about a splurge—for yourself or others—consider how long, how lasting, how valuable will it be? For example, a framed photo or piece of art will last a long time. A laptop computer, a briefcase, a backpack or purse has daily use and will create continual enjoyment and benefit. A “one-time-wonder” will not produce the same benefit.

Third, check your motivation for a splurge. Ask, “Why do I want it or why do I want to give it?” Is it to compete with someone? Is it to fill a need? Is it a waste of time and money? Only you can answer those questions, but if/when a splurge can leave a lasting benefit, you will enjoy the experience and the purchase much more fully. (Note: Within this informative CBS News clip, research from a Harvard study showed people were happier when spending money on others than when they spent money only on themselves.)

Finally, consider a splurge that will make memories. Examples of splurges that make memories might include family vacations or reunions with friends at a campground, birthday trips (instead of birthday gifts), smaller and intimate destination weddings, or gifts that have much thought behind them such as antique furniture, a special edition used or autographed book, a collector’s item, or a single strand pearl necklace.

Splurging without being impulsive—what a novel idea!

If you will plan your splurge by choosing something that will have a lasting benefit, shop the best price, then budget for it, save "a little change" weekly and allow each sacrifice to build with expectation for the moment of purchase, you will experience the "big result" of giving and receiving something that has lasting value without the shame of lingering guilt or debt.

Be encouraged,

Becky