Kimberly Palmer, Neldwallet
Sometimes even budgeting experts say it’s okay to splurge.
For Jen Smith, co-host of “Frugal Friends Podcast” and co-author of “Buy What You Love Without Broken,” the responsible jump prevents expensive hurricanes for his home in St. Petersburg, Florida It means buying a window. It has a history of bad storms.
“It was for the safety of our home and we saved money for it,” she says.
Deciding when to splurge on expensive purchases can be difficult, and even Smith admits that she initially felt guilty about it.
Jill Sirianni, co-host of her podcast and co-author of the book, said that part of the Sprado challenge is, “You’re selling either a saver or a Spender, but in reality, we’re all He explains that he is spending it, and we should all save it.”
According to Silianni, the trick is to know when to embrace each trend.
If you are trying to decide when to save or splurge, here are some questions to ask yourself first to make the most appropriate decision.
Does the purchase fit your budget?
“Starting with a budget increases awareness of spending money,” says Gerald Grant Jr., a financial advisor and equitable advisor in South Florida.
Grant suggests keeping your budget simple. Similar to essential categories and “desires”, then closely track your spending to ensure it matches your financial goals. If you have a budget, it’s easier to decide whether to splurge on something, as you can see if it fits in a bigger plan.
Will Sprade save you time?
If spending extra money saves time and energy, the reward is worth the cost.
For example, in addition to his recent window purchases, Smith has also decided to hire a home cleaning company once a month. She cleaned her home and became overwhelming along with the rental properties she ran.
“I’m finally ready to spend this money and remove this from my plate.
Do you pay more for quality than quantity?
In some cases, buying low-cost options, such as clothing and toys, can result in lower quality products that don’t last long, says Sirianni. Paying more means that the item will last longer and ultimately save you money.
“We love that we aim for quality rather than quantity,” Siriani says.
What is your spending?
Certain triggers can encourage us to spend more than planned, and Silianni says that studying those triggers will help us avoid them. This will allow you to make more intentional choices when it comes to making saves or sprage decisions.
“We’ll run a 90-day transaction inventory. Collect bank statements, credit card statements. Get everything in one place,” she suggests.
From there, find the place where you spend the most money. What time does the spending occur? Who are you usually with? Will the spending be made in a common location?
For example, you often do things you regret late at night. For example, try avoiding shopping in the evening.
“Learn patterns and habits and make plans,” Syriani says.
Is the product or service consistent with your value?
When Smith is about to decide whether to buy something or not, she often tries to see the decision through her value, a non-financial filter. For example, she wanted to support local women-owned small businesses, and moving forward was an easier choice, as the cleaning services she hired fit into that category.
“I put money in my community and I’m stress shopping on Amazon. This takes money from my community,” she says.
Can I save it before I spend my money?
Like Smith with the window, Silianni saved before a big splurge that was on a European holiday with her husband and friends.
“We spent more money than my younger self, but I kept this money aside,” she says.
She used the Thinking Fund, a dedicated, regularly funded savings account, to save for her trip.
“I had set aside about $5,000 for this trip so I could spend it without any guilt or shame,” she says.
When it comes to splurge, we grant advocates for the same savings first approach. Saving this purposeful way is part of your overall budget plan.
He suggests creating separate savings accounts outside of normal savings, so it’s easier to track the purpose of the various accounts.
Otherwise, you’ll be spending that money before you need it for your vacation.
“It’s not extra money, but it’s money that we put aside for expenses that haven’t yet been incurred,” says Grant.
Kimberly Palmer writes for Nald Wallet. Email: kpalmer@nerdwallet.com. Twitter: @kimberlypalmer.
When to splurge and when to preserve it originally appeared in nerdwallet.
Original issue: February 17, 2025, 2:34pm EST
