You’ve worked hard, saved diligently, and stayed on top of your finances. Then, while out shopping, you spot something special—perhaps a gourmet treat, a limited-edition item, or that long-awaited upgrade. You think, “I deserve this!” And you do! But before making the purchase, it’s worth considering: Is this the right time to splurge?
Splurging isn’t necessarily a bad thing. You’re rewarding yourself, after all. But the key to doing it smartly is knowing when to say yes. When done right, splurging can keep you motivated and even help you take advantage of perks like cashbacks, installment plans, and a credit card promo or two. Here’s how you can master the art of responsible splurging.
Plan Your Splurge
Many people think splurging is spontaneous, but smart shoppers actually plan their splurges. This means they set aside money specifically for fun and rewards. Think of it as a “treat yourself” fund—an amount you save each month for little luxuries. A good rule of thumb is to allot only 5–10% of your income to this fund, depending on your other financial needs. This way, you will naturally set a limit for your splurges.
Moreover, divide your splurges into categories. Small pleasures, like coffee or movie nights, are easy to budget for. Medium-sized purchases, such as new clothes or a spa day, need a bit more planning. Finally, big treats—like a trip abroad, a phone upgrade, or a designer bag—should be saved for in advance.
Another useful trick is the “spend what you save” rule. For example, if you skip takeout coffee for a month and save PHP 1,500, you can use some of that money for a small treat. This way, you’re still enjoying rewards while being responsible with your spending.
Think Before You Splurge
Before buying something, take a moment to ask yourself why you want it. Rewards can make you happy, but sometimes, people shop when they’re bored, stressed, or sad. According to Forbes, this kind of impulse spending can lead to buyer’s remorse and a negative buying experience because the excitement fades quickly, but the bill remains.
On the other hand, choosing meaningful and affordable rewards over expensive, unnecessary ones helps you stay financially stable while giving you a much-needed dopamine boost. A good way to test if you really want something is to wait a week before buying it. If you still want it after some thought, it’s likely not just an impulse buy.
Do Your Research
Making smart decisions about what you buy is just as important. Before making a purchase, compare prices, read reviews, and check for discounts or better deals. This helps you get the best value for your money and avoid regret later. By doing this regularly, you’ll not only get the best deals but also build good money habits over time.
You should also be on the lookout for and take advantage of credit card promos to make the most of your spending. For example, the Landers Cashback Everywhere Credit Card is designed to give you 5% cashback at Landers, 2% on dining spends, and 1% on all other qualified transactions.* To unlock that 5% rate, you need to accumulate PHP 50,000 worth of total spending on your card for the month—that’s not just spending at Landers, but anywhere you pay using your credit card. This means you can strategically use your card for those big-ticket purchases you were planning anyway. By doing so, you’re not just making it easier to hit that total spending goal; you’re also leveraging your credit card as a payment tool and as a capable financial asset.
Make Your Splurges Count
A good splurge should make you feel satisfied. One of the best ways to achieve this is by spending on experiences rather than material things. Studies show that people feel happier when they spend money on experiences—like a weekend trip to Baguio or a concert—rather than on physical items.
If you do want to buy a new gadget, appliance, or accessory, make sure it’s useful. For example, a high-quality coffee machine that saves you money on daily Starbucks runs? Great choice. An ergonomic chair that will last for years? Smart buy. But a fifth pair of sneakers when you barely wear the other four? Maybe not the best idea.
Enjoy a Splurge Without Spending Money
If your budget can’t handle a “treat yourself fund,” there are plenty of free or low-cost ways to still reward yourself. Love spa treatments? Have a DIY spa day at home with a friend. Want a new wardrobe? Visit an ukay-ukay store or organize a clothes swap with friends. These creative alternatives let you enjoy rewards without breaking the bank.
You can also make use of loyalty points or rewards programs. For example, collect enough points on qualified transactions* with your Landers Cashback Everywhere Credit Card and then you can use these to get a discount the next time you shop at Landers. Using these perks allows you to enjoy a splurge without spending too much extra money.
Treat Yourself Responsibly
The secret to smart and responsible splurging is making sure it brings you joy without causing financial stress. Whether it’s upgrading your phone, booking a dream vacation, or enjoying a fancy dinner, a well-planned purchase should make you happy, not guilty. So, budget your treats, use credit card perks wisely, and do your research first. At the end of the day, money is a tool to help you live a good life. Spend it wisely, and you’ll see that treating yourself can be both fun and financially smart. So go ahead—enjoy that well-earned reward!
*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government. (Include this fine print at the bottom of the article)
