How to Splurge Wisely
In addition to splurging smaller and more frequently, here are additional tips for splurging well:
Splurge in control: This is the most important foundation for splurging: splurging should always be done within a budget! We recommend setting aside a portion of your discretionary expenses every month for splurges. If you budget for splurges, they are less likely to get out of control.
Splurge for free: A recent study showed that those who master the art of savoring are happier in life. Ironically, those who are wealthier are less skilled at savoring. Savoring is the ability to enjoy and be present in the simple (often free or inexpensive) sensory experiences in life: the brilliance of a sunrise, the smell of a flower, the warmth of a furry dog. Think about indulging in free splurges as often as you can.
Splurge towards others: Consistently time and again, studies show that spending on others makes us happier than spending on ourselves, even though most people find this counterintuitive. The benefits of giving to others have been documented on a neural level in MRIs—even those forced to give money away showed activation in brain areas typically associated with receiving rewards. Consider using part of your splurge budget towards gifts and charity—you’ll be happier for it.
Now, go forth and splurge well.