When You’re Rewarding Yourself

Did you just pay off a large loan? Did you finally get that promotion at work? It’s okay to treat ourselves for working hard and a job well done—but the trick is that you must have saved up enough money to reward yourself. It’s not a reward if you’re charging it on your credit card and will get the bill to pay it off at the end of the month. Don’t make your future self responsible for paying for your past self.

So how do you keep your rewards in check? Find where in your budget that extra money will come from, whether forgoing your dining out budget for the week, or putting into savings an extra $20 per week until you reach your goal, and allow yourself to spend it guilt-free.

When You Won’t Regret It

How many times have you gone around your house looking for items to sell online for a fraction of the price you bought it for, or bought something only to realize you don’t have enough room in your closet to fit it?

Become more mindful with your spending—ask yourself, will you still want this in a year? Do I really need this? Am I buying this because of a physical need or emotional want?

If you’re truly buying an item based on need and it’s something that will last you a long time, then go ahead and splurge.

By having a debt repayment plan where you build in the inevitable splurges, you’re more likely to stick with your plan without getting completely derailed.

The trick is to plan for these splurges and to make smart choices so that you can continue to pay down your debt and meet your financial goals.