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Eagle Blog

To Splurge or Not to Splurge?

Dec 4, 2019, 17:08 PM
Raised hands surrounded by bills and coins

Everyone deserves a special treat now and then. For some, a splurge is the daily morning latte from their favorite coffee shop, while others consider big-ticket items like a new car or an exotic beach vacation a splurge.

Whatever you fancy, splurging is a way to reward yourself for your hard work and a job well done. So, the question is, to splurge or not to splurge? Here’s what to ask yourself when considering a splurge:

Can you afford it? Meaning, can you pay for it in cash? If you must finance a splurge, then that’s an indication you probably shouldn’t move forward.  

Is your safety net in place? Before dishing out a lot of money on a fancy new toy, make sure your safety nets are fully funded. Experts recommend you have 3 – 6 months’ worth of expenses saved just in case some unforeseen circumstances arise (job loss, major health issues, etc.)

Will it throw off savings goals and plans? Before you splurge, sit down and calculate how much you can afford to spend without it affecting the integrity of savings and your overall financial plan.

Will it spark joy in the long run? If you are going to spend a lot of money, it should bring you joy. And, research suggests that experiences tend to bring more long-term happiness than “things.”

Have you done your research? There’s nothing worse than buyer’s remorse. Take the time to research your future research to ensure it’s worth the splurge.

Deciding when it’s appropriate to splurge is no easy feat. And when it’s not possible, the temptation to do so anyway can be difficult to ignore.  Let us help you make big decisions smaller and small dreams bigger with our Financial Wellness Program. Because financial wellness is the key to living your best life.   

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