splurge

Everyone has something that they can't help but splurge on. I think my spendy vice is probably books. I'm such a bookworm, so every time a new novel catches my interest, I can't help but download it on my Kindle.

Although I probably do spend more than what the average person does on books, I figure since I don't spend money on clothes and shoes, I don't give myself a hard time over this expense. One book provides endless hours of entertainment because you can read it over and over again, so in my opinion, it's well worth the money!

What about you — which hobby do you spend the most money on?

We're thrilled to present this smart LearnVest story here on Savvy!

There’s something about the word “splurge” that just feels indulgent — it rolls slowly off your tongue in a decadent drawl, and evokes imported truffles and designer shoes. It’s a decision for immediate luxury, albeit often laced with a tinge of guilt.

There’s no room for such frivolity in the responsible world of financial planning, right?

Wrong. Most financial experts and social psychologists will tell you that splurges are not only allowed, they’re necessary and healthy to achieving financial happiness, because the pleasure they provide promotes a better relationship with our money — and, let’s face it, is one of the ways money makes our life more enjoyable.

The key is figuring out how to do them right, so that your splurges don’t detract from your goals, and your dollar goes far in returning pleasure.

We Get Used To What We Have

The key to mastering splurges is to first understand human nature. We are subject to a pesky psychological phenomenon called adaptation: essentially, we get used to what we have. This is commonly referred to as the hedonic treadmill: the concept that even if we acquire better circumstances — more money, a bigger house — we will quickly return to the level of happiness we had prior to these acquisitions, and will require more to get that same surge of satisfaction again. This explains why study after study shows that more money does not equate with more happiness.

To learn the right way to splurge, read more after the jump.

Nobody ever said having a baby was an inexpensive proposition. From everyday necessities like diapers and wipes to nursery gear, clothing, and food, the expenses add up — and they do so quickly! Trying to keep a new mama away from the adorable onesies or miniature shoes can be like keeping a caffeine fiend from a coffee shop. Though there are less expensive options for many of the popular products out there, some moms just feel the need to splurge on certain items.

While I stock my nursery with warehouse club-brand wipes and buy my children's pajamas at outlet stores, I can't help but use the savings on gorgeous sweaters that they most certainly don't need (and one actually refuses to wear for more than three minutes).

What do you splurge on for your lil one?