Here at MiCash, we keep giving you tips on the best ways to save your funds, fix your budget, protect yourself from having your money stolen, and basically milk everything you have earned for what it is worth. We hope we are not giving you the impression that we are promoting a miserly lifestyle. While it is true that saving up is very important and learning to spend less than what you earn everyday is a good rule of thumb to live by, we are not totally shunning the idea of indulging oneself every once in a while. Whether it’s to reward yourself for doing a job well done or as a way to relieve yourself of stress, splurging can be a good thing. We just have to make sure that actually have the money to splurge.

The Difference between Splurging and Overspending

To splurge is to indulge oneself with some luxury or pleasure, usually a costly one, because you can. If you do not have the cash to spare, you would be overspending, not indulging on your spending power. Overspending is like eating an undercooked meal. You eat it because you are too hungry to wait, and the next day, you get an upset stomach. Many times, we have experienced this: Going on a shopping spree and ending up wishing we did not buy half of the things we just bought, because having a lighter wallet feels too unsettling.

Save Up for your Splurge

Wouldn’t it feel so much more fulfilling when you know you will be able to spend without having any worries? Give yourself something to look forward too. Have a more tangible reason to save up your money than simply to get ready for a rainy day. It is best to put a rough number on how much you want to set aside for your splurge. This way, you can stop yourself from going overboard on your expenses.

Attend to Business before Pleasure

Do not start splurging when you know you still have unfinished financial business to deal with. If you have any bills to pay or debts to cover, attend to them first. The last thing you want is to fall further into debt because you ended up using the money that was supposed to pay for your rent to purchase a coveted pair of boots or a shiny new video game console instead.

Don’t Splurge with your Credit Card

It is easy to overspend with your credit card because you can’t exactly monitor how much you’ve already spent using it. You will just have to surprise yourself when the credit card bill comes in. The problem with this is: What if you find that you don’t have enough money pay for the accumulated credit on that bill? The amount will accumulate interest, and you would be at risk of getting stuck with credit card debt.

To prevent this from happening, keep your credit card tucked in your wallet or card holder during your splurge. Use cash where you can. For large expenses, opt for a prepaid debit card instead for cashless payment.