I am not sure if you are aware of this, but we have a student loan crisis on our hands. With more and more students graduating with heavy student debts on their shoulders, it is unquestionable that those entering the employment world this year (and within the past couple of years) will have no choice but to sort their finances in a way that does not exacerbate their financial problems.
In order to save ourselves financially in the long run, we twenty-year-olds need to make it a habit to spend our salaries responsibly by paying our debts in full and on time, saving up for retirement (and perhaps beyond that), and allocating a portion of it for our emergency fund. If we can handle that wisely, then we should not feel guilty when we decide to splurge from time to time. This will sound contradictory, but permitting ourselves to go against the budgeting rules we have established for ourselves once in a while may encourage us to keep ourselves on course.
Because each of us is unique, it makes sense to believe that there is no single uniform definition of splurging. Splurging is a subjective term – it depends on our personal financial situation. However, as long as we know what we are doing and we do it right, there is no reason for us to feel guilty upon splurging. Continue reading to find out some of the strategic ways to splurge.
1. Investing In A Long-Term Hobby Or Passion.
For many of us, our hobbies and passion can grow into something more very quickly. In my case, since I held my first DSLR when I was fifteen, it has grown to become an expensive endeavour. While it can be lucrative to make a shopping run for the best and latest items, do not succumb to the temptations. Instead, devote your resources to a personal interest that brings you joy and meaning in the long run.
When I discovered my enthusiasm for photography in mind-2010, it did not take me long to realise that photography gear costs up to thousands of dollars. I am thankful to have a pair of supportive parents who were willing to provide me with the initial funds to grow my interest further. Since then, I have been spending my own savings on a range of photography gear and had to save elsewhere. Do I regret my decisions and actions? Absolutely not. Recognising that camera lenses are not cheap, I strategically bout those that I know I will use for the rest of my life. Now that is what I call a worthy investment.
2. Signing Up For A Course.
There are many ways this can take shape. You are looking to improve your cooking skills, and so, you have decided to take up that Masterclass course hosted by Gordon Ramsay. Perhaps you want to have a crash course on psychology, and you then opted to take an introductory class on psychology on Coursera.
Last year, while I was locked up at home because of the travel restrictions in place, I decided to pick up a few courses on Coursera. Because I was still a student at the time, I was able to sign up for any course on the platform without paying a single cent. I took classes on a variety of subjects, ranging from business law to pandemic crisis management. Although some of them were not tied directly to what I was studying then, I am glad that I did it because it has expanded my knowledge base.
Whether your topic of choice, signing up for a course can be a good method to deepen your pool of knowledge, especially when you have access to free resources to solidify what you have just learned.
3. Look For A Solution To Address Your Consumerism-Fuelled Weaknesses
I want no business with the whole “Money doesn’t buy happiness” debate, but I will say this: money is a tool that enables us to buy things that make us happy, and I like to spend money on books. I have this notorious habit of purchasing more books even before going through the last item on my TBR list. Recognising this, I decided to make some changes. I am now enrolled in a book club organised by a local bookshop, where – for a monthly fee – I receive a brand-new copy of a book that was recently released in the mail. And that is as far as I will go when it comes to ordering new books. Doing so allows me to track how much money I spend on books monthly.
This strategy can be interpreted in more ways than one. The important thing to note here is having a clear picture of where your money is going and searching for methods to manage your dollars and cents more strategically.
4. Travelling Around The World.
Not many people may fancy the idea of leaving their homes to explore the world. However, there is no question in mind that it has tremendous benefits, from widening your worldview to absorbing insightful life lessons. Also, who does not love to spend time on the Maldives beaches? Travelling is an experience everyone should strive for.
If you plan your trip diligently, it is not impossible to travel to your intended destination. Regardless of the amount of time it takes and your vacation location, give yourself a chance to explore the world. You can learn so much just by visiting new places and interacting with people outside of your country. Now, that is another worthy investment.
Final 2¢: No Point Living Frugally Too Seriously
On the one hand, it is important to take a serious stance when you are managing your dollars and cents. It pays to monitor where the movements of your money and adhere to a realistic budget. Those are good lifetime financial habits. On the other hand, it can be pretty overwhelming at times to maintain those habits. Hence, we sometimes need to splurge a little more than we should in order to relieve ourselves.
After all, we all need to have some fun too.