Pay Yourself- Splurging Can Be Okay

Pay Yourself                 

I'm not talking about saving 10% of your income, which is great advice and should be a money moment in an of itself, I'm talking about giving yourself some play money.

Splurging in small increments actually helps you budget your money better- it takes away the feeling of scarcity or the "burden" of saving. Saving without play can lead to a "budget burst" or an unplanned shopping spree that you may regret later.  However, allowing yourself to spend a little fun money each month is not only good for your budget it is good for your mental health.  In studies psychologists have found that small, frequent, splurges actually make people happier than infrequent large purchases. (Journal of Consumer Psychology: If Money Doesn't Make You Happy, Then You Probably Aren't Spending It Right, by Dunn, Gilbert and Wilson)

I am a budget fanatic, I calculate everything we spend from the dollar movie we rented to the groceries or gas in the car. But, every month my husband and I budget what we call Personal Money, or fun money; just a small amount of money that we can do whatever we want with. This is one area we use cash for. It works like this, if you have the cash, you can buy what you want, if you don't spend all your personal money, more for next month. Lucky you.  Having fun money set aside makes going out to eat or buying a new toy recreation instead of a budget strain.  Fun money keeps the rest of the budget in check.  So pay yourself, even if it is just a little.