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4 Ways to Make Room in Your Budget for a Splurge

Living on a budget can be tough, especially if you’ve had to make cuts to your spending in the past to make sure you’re living within your means. But that doesn’t mean that you shouldn’t ever splurge on luxuries and other things you want. The key to splurging is to figure out how to do it without disrupting any progress you’ve made toward reaching your long-term financial goals. 

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1. Set Up a Splurge Account

Setting aside a designated amount of money each month for splurging can be a great way to make sure that when you do make a big purchase, you can do so without having to rob other areas of your budget. Determine how much you want to set aside each month to this specific fund and transfer it to a separate savings account. Then when you want to go shopping, you can tap into that account if you need to.

2. Stick to Small Splurges

4 Ways to Make Room in Your Budget for a Splurge

When you’re working toward big long-term goals, it’s probably best to keep your splurge spending to a minimum. Treating yourself to a happy hour drink with your friends or a half-priced appetizer at your favorite restaurant (versus a long night of expensive partying or a five course meal) are great ways to keep your splurging under control. And hopefully you’ll still have enough money in your budget to put into a retirement account or an emergency fund.

Find out now: How much should I save up for retirement?

3. Splurge on What You Care About

4 Ways to Make Room in Your Budget for a Splurge

If you love to travel, it makes sense to pay more for things like a tour of Europe instead of wasting your cash on something you don’t actually care about. Everyone has different interests, so you and your friends probably won’t end up spending your money on the same things.

For instance, I’d splurge on a new piece of clothing or a scarf, but my best friend would probably prefer to splurge on a date night with her hubby. The important thing is to know your priorities so you are more satisfied with your splurges.

Related Article: 5 Ways to Manage Your Urge to Splurge

4. Splurge on Others

Helping a neighborhood kid pay for a school trip was one of the best things I’ve spent my money on in a while. I went over my monthly budget for charitable giving, but I figured that overspending for a good cause was worth it. I cut back in other areas to make it happen and ended up feeling great.

Photo credit: © Bowden, ©,


Kayla Sloan Kayla Sloan is a writer with an expertise in debt, budgeting and saving money. She is focused on paying off her consumer and student loans, while simplifying her life and closet. Kayla's work has been featured across the web, including on The Huffington Post, Time, and AOL. You can follow her as she blogs about her journey out of debt at
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