I fight splurges less often than I used to, but the urge still pops up occasionally. Sometimes, it’s okay to splurge; but mostly, I find myself wanting to resist temptation. There are a few questions I ask when I’m mulling over a purchase:
- Do I have money saved for this?
- Do I feel like I’m stealing money from a financial goal?
- Am I simply being impulsive? Will I regret this in an hour?
Another way I decide on my spending is by considering my future self. The first time I ever came across the phrase “future self” was in a personal finance book. In the money world, the idea of “future selves” is discussed a lot. And rightfully so — a study found that, just by picturing ourselves in the future, we save more money.
In Increasing Saving Behavior Through Age-Progressed Renderings of the Future Self, researchers tested the savings behaviors of college-age participants. They showed some subjects a digitally altered image of themselves at 70-years-old. The control group was shown a photo of their present self. Researchers found that those participants who viewed a photo of their “future self” saved twice as much money in a retirement account than the control group.