Have you ever made a purchase that has thrown your monthly budget off-kilter? Or maybe you’ve put financial restrictions on yourself that push you away from spending on things that bring you joy. The phrase “treat yourself” has been trending for a while, and the good news is there’s some benefit to it!

Placing money in your budget for splurges is important, but setting aside too little or too much can set you off the path of your financial goals. Here’s your guide to budgeting for the occasional splurge.

Why setting aside splurge money is important

There is a myth that all splurges are negative, and that inner dialogue people use to shame themselves, or conversely, to ignore overspending, can be detrimental for financial goals. Giving yourself the flexibility to enjoy your earnings reduces restraint. Financial psychology is a growing field that studies this very topic. Read more