There’s nothing wrong with treating yourself to a cold brew when the afternoon slump hits, some takeout in the evening after a busy day at work, or even those new shoes you’ve been eyeing for months. Treating yourself feels good, but these are splurges on things we don’t really need, we just want, and they can be bad for the bank account balance if you’re not careful.
But you don’t have to cut out all the little luxuries that make you happy just because you’re trying to stick to a budget. Financial planner Nadia Vanderhall is sharing a money-saving hack that lets you spend without feeling too guilty - the “treat yourself tax.” The idea is really simple: Whenever you buy something unnecessary, you transfer the same amount into your savings.
Whether it’s a $7 latte or a $200 purse, move the same amount as your total into savings right away and you’re done. “This is the kind of hack that works because it’s flexible and real,” explains Vanderhall. “It helps you stick to your budget without it feeling like punishment.” You still get to indulge without the guilt and over time, you’ll see your bank account balance grow, which can feel like a treat of its own!
Source: Bustle