I recently read the book, “Happy Money: The Science of Smarter Spending” by Elizabeth Dunn and Michael Norton. The authors made the interesting discovery that people enjoy purchases like fancy lattes, Belgian chocolate, and massages MORE when they had them LESS often. Why is that?
When something is an occasional treat, rather than part of your routine, you have more happiness and more money! Think about it: if you have a donut every day, then it’s part of your routine. But if you have a donut about once a month, as I do, then it’s a special treat. The cool thing is that if you’re trying to cut back expenses so you can pay down your debt and build up your savings, you’ll actually be happier by splurging less often.
What splurge do you need to cut back on so that you can return it to “treat status”? Just be careful that you don’t take this too far in the other direction! If your splurges are too far and few between, you may get discouraged and fall off the wagon.