Whether you’re saving up to buy your first house or working on eliminating some credit card debt, just about every financial guru will tell you to be frugal — to cut down on unnecessary expenditures. It’s such widespread advice because it works — brown bagged lunches, fewer Starbucks lattes and wearing clothing that doesn’t require dry cleaning can help free up a lot of money in our collective budgets.
But a new budget is like a new diet: after a few days or weeks, we start asking ourselves just how long we’re going to suffer. How long are we going to deprive ourselves of those nights out with friends or that new DVD that we really want? When can we stop being frugal?
Well, it depends on how we depend frugality. After a while, we get used to certain parts of living on a smaller amount of money each month, but that can be boiled down to simple budgeting. We really shouldn’t ever stop managing our money; there may not be another house in our future, but it’s surprisingly easy to slip into bad credit habits even if we’ve been down that route before.
Depriving ourselves of every little luxury, though — I don’t actually consider that frugal. Most of us start keeping an eye on our finances in order to make our lives more comfortable. And part of that comfort is those little luxuries. Even early on in the budget-making process, I recommend putting at least a few dollars aside each month with the intention of having a little fun.
I’m not recommending bringing those lattes back into the budget, unless good coffee really is one of your favorite things in life. Instead, consider your options. What really is the most enjoyable part of your day? What makes you want to get up in the morning, or grab a friend to talk about? That’s where your luxury budget should go. And don’t stick with the same thing every month — our wants and needs change. This month, I may be eying a particularly good book, but next month, I may want to go out for a night on the town with my friends.
And as I’ve become more comfortable with my financial situation — less debt, more savings — I’ve even increased the amount that I put towards the little comforts of life. I’ve made a point of keeping some money in savings, building towards bigger purchases like a new computer or another luxury item.
Removing every single luxury from your life may seem like a good idea if you’re trying to reduce your spending. But if you do, you’ll make yourself miserable. You may not be able to stick to it, either. I’ve got to go back to that diet metaphor: a lot of people go on diets and do pretty well the first week. Then they slip up, and go back to their old habits. It works the same way with budgets, unfortunately. The best thing you can do is make your budget a little more comfortable. Sure, it may take a little longer to save up for that house or to pay off that credit card bill, but you’ve got a better chance of making it.
