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Planning for your splurges

  August 24,2021

Having a hard time following your budget? Plan for your Splurges

We all work hard to earn money. Saving and investing money is essential, as it can help you have a better future. After taking care of necessary expenditures and investments, you can make way for splurges in your budget.

Everyone has specific areas where they want to splurge, and that is perfectly fine.

Here’s why you should include splurges in your budget:

Most of the items that are accounted for in your budget are things that you aren’t excited about. Paying rent and bills is boring. But what if you planned for that spa or lettering kit? In that case, you would be more inclined to follow your budget. 

Moreover, spending money on our wants makes us feel good about ourselves. If you are very restrictive about your spending, you can get frustrated, and that willdiminish your will to follow your budget. Moreover, there can be a higher risk of going overboard when you finally spend money.

Making way for your splurges in your budget gives you the permission to spend money in a planned manner.

How to splurge

It is easy to confuse splurging with lavish spending. Here’s how you can plan and enjoy your splurges:

Be cautious if you are paying off debt

Are you paying off debt such as personal loans or credit card bills? In that case, you might want to be cautious while splurging. Don’t avoid splurging altogether. Keep it very minimal. Otherwise, paying off your debt may feel like a struggle and you may later end up taking more debt to compensate. 

Limit your splurges to a small percentage of your income

While spending a part of your income may make you feel good, it is vital to set a limit. One can spend 10% of their income on wants. However, you need to decide where you want to spend and the percentage of your income that you want to set aside for that expenditure.

Create a splurge fund

Now that you have figured out the percentage of your income that you want to allocate towards splurges, it is time to create a splurge fund. You can park the money in a liquid fund especially meant for your splurges. If you are aiming for a large purchase, you can set up a Systematic Investment Plan (SIP) and the amount will be automatically debited from your savings and credited to your liquid fund.

If your splurges don’t require investment, you can transfer the amount to a different savings account. You can park your bonus, cash gifts received, etc., in your splurge fund.

Don’t let your emotions control your spending 

Emotions play a significant role in how we handle our money. Sadness and successes can prompt you to spend more money. So, it is best not to make any rash decisions under these circumstances. It is better to ask yourself if you would spend the money otherwise as well. You may later end up regretting your spending decisions.

Don’t feel guilty about spending money

Many people feel guilty after spending money. But it’s not something you need to feel guilty about. You have planned for your splurges after considering your needs and investments.

Moreover, don’t feel guilty aboutspending money with your loved ones as relationships eventually mean more to a healthy life.

Mix things up

You may have specific areas where you enjoy spending money. However, it may fail to deliver the same level of happiness for months on end. So, it is always an excellent option to mix things up and try something new. For example, if you love reading self-improvement books, you can switch to reading a few novels. Or you can take up a new interest or hobby.


Splurging in a planned way can help you follow your budget. You can budget a certain percentage of your income as ‘fun money’ that you could use to buy things or experiences that you love or for any unplanned expenses. By planning your splurges in your budget, you can have fun with zero guilt.  

This blog is purely for educational purpose and not to be treated as a personal advice. Mutual fund investments are subject to market risks, Read all scheme related documents carefully.