Are you having the urge to splurge? That feeling of indulging yourself in new items that you probably didn’t need because you just can’t help it? Giving in to those instant gratifications could have regrettable and costly financial mistakes. But, finding a balance allows you to have it all and stay on track. Perhaps, with a little help from Young Finance 101.
Answer these questions… How will splurging impact your life? Does it help you learn a craft, enhance your skills or build memories? Will you regret your decision to spend the money afterwards? Spending money that you don’t have isn’t good. Young Finance 101 doesn’t want you moping around because you can’t buy what you want. No one said that just because you financially can’t buy it now, doesn’t mean that one day you won’t be able to afford it.
Splurging at times can be regretful; however, splurging on things that build memories like traveling or donating to those that need it are more rewarding. Experiences can also bring you joy. If you chose to live in the moment by taking photos and videos, then you are able to capture your experiences and later reflect on them from years to come. These can be more precious than having a physical possession like souvenirs or clothing that will one day fade or could break.
Taking a look at education, if you want to expand your knowledge and splurge on books, lessons, webinars and equipment then look for ways that you can budget spending the extra cash. Most of the time educational expenses, depending on what you bought, can be a tax write-off. Furthering your knowledge and skills can bring in more money for your addiction to shopping like freelancing your skills. When you are hustling on the side and bringing in money, then you will be able to buy the things that you want.
That skill, even though you are freelancing, could lead to a better job that pays even more. Freelancing gigs are always rewarding not just because you are making more money, but because it builds your resume, expands your knowledge, builds rapport and helps you with networking. YF101 does recommend that you set aside some of the additional cash for a rainy day because we all have those.
Do you consider yourself an impulsive buyer? The kind of person that has money burning a hole in their pocket and you are just dying to spend it. Don’t buy something just because it’s on sale. That is just asking for more financial trouble. With the holiday season here, there’s going to be a lot of great deals out there especially during Black Friday. Don’t start looking at stuff you never thought about owning because you saw it on the weekly store ad or website. Save yourself the embarrassment of realizing that you don’t have money left over after your splurge.
Instead, make a list of the items around your house that you absolutely need not want. What are the items that would help make your life more functional? Then buy or save up for the things that you really need that will improve your lifestyle or well-being.
It might be time to do an inventory checklist and declutter. A lot of times we forget that we already purchased items and buy them again. So, go through your home room-by-room and look at the items that you have. If you have not used the item in more than a year, then it’s time to donate, sell, give it away or trash it. For items that seem to come year-around that you might stock up on like school supplies, organize what you have and place all unused items in a clear bin so that when the new semester comes around you have the items that are needed. Make a list of everything you have, right down to the paperclips. That way you know what you are short on so that when the new school year gets here you can buy what you really need.
A great way to make money after decluttering your home is to sell items that you no longer have a use for like kitchenware, clothing, electronics, books etc. Think about selling those items online. There are various websites like eBay, Amazon, Craigslist, and more where you can make some additional cash to help with those days you just have to buy something.
***Note***A good rule to live by before you buy anything is… out with the old and in with the new. Once you start going through your home and realize how much stuff you actually have you will probably be rethinking your spending habits.
Have you ever heard, “can’t buy wine with beer money?” We are talking about the expensive wine, not the cheap wine in the box, although there are some box wines that do taste good…so we hear! The lesson here is to be responsible with your money. Just because you can afford to buy it doesn’t mean that you should. Many times, we fall victim to those great deals that we are blind to see how it will impact us financially. Making bad financial decisions could hold you back for an even bigger purchase like closing on your first home.
We hope these suggestions helped you with your splurging addiction. If you have any suggestions for other viewers reading this article or ways to help, please leave a comment. As always class is in session!