From Yahoo Finance: 2025-04-18 11:01:00

As recession fears shake the stock market, it can be daunting to indulge in luxuries. However, with proper planning, you can treat yourself without breaking the bank. Setting aside a small percentage of your paycheck for a “treat yourself” fund allows guilt-free splurges, as advised by financial experts.

By automating transfers into a separate savings account specifically for luxury splurges, such as a “treat yourself” fund, you can enjoy special experiences without the worry of overspending. Planning and discipline are key to balancing luxury spending with financial goals, ensuring peace of mind and satisfaction.

Andrew Lokenauth, a money expert, emphasizes the importance of maintaining financial stability before indulging in luxuries. By prioritizing essentials, savings, and debt payments, you can allocate funds for occasional splurges without compromising your financial well-being.

Start by defining what “luxury” means to you and setting realistic savings goals for indulgences. Tracking your spending and adjusting as needed helps maintain financial discipline while enjoying occasional splurges. Balancing self-awareness with consistency is the key to sustainable luxury spending without derailing your finances.

Read more: How To Allocate Parts of Your Paycheck for Intermittent Luxury Splurges