When You’re Planning to Go Broke, Get the Most Out of It.
It sounds counterintuitive, but a waste of money can benefit your budget. If you plan for the occasional luxury, you avoid the risk of cost overruns when you achieve Lean Burnout. Give yourself a chance to show yourself off, but be careful when doing so.
Most experts recommend a bit of a breather in your budget. If you put a budget too tight, as I did , you are more likely to experience it by overestimating your willpower.
When you allow yourself to spend money, you avoid ruining your budget and overspending. But the costs will vary depending on your financial situation and goals. There are a few tips to consider in order not to waste your money on empty dust. First, you want your spending to be in proportion to your budget. We recommended the 15% rule , which allows you to take 15% of what you’ve already saved and spend on something fun.
And Muse offers some tips to help you make the most of your money:
Consider an upgrade a trifle Baker says that part of understanding when something is being spent is to determine if it is a need or a desire, which seems a little more decadent and special. However, spending on upgrades can be small for both. For example, you may need a set of wheels to get you to and from work, but you have to spend enough money to get there in style.
Remember, impressions are important too. You can get a lot of bang for your buck, whether it’s a weekend trip with old friends or your favorite band reunion tickets.
Don’t let your emotions control your spending of money One problem that Concepcion sees with many spending is that it is bought in the blink of an eye – and therefore not always what you might want if you thought more about it.
Interestingly, they also affect hedonic adaptation , which we discussed earlier. It’s tricky, but it basically means getting used to what you have, however little or a lot.
When it comes to spending money, too much of a good thing may not make a big difference to your level of happiness. So if you really want to get the most out of your spending, make a difference. Consider spending your money on something new.
Most importantly, you want to set aside a budget for your spending without ruining your finances, so make sure this is a luxury that you can afford. And for more information on how to get the most out of your money, check out the full post on Muse.
How to spend money on something cool without spending your budget and feeling guilty | Muse