RESISTING THE HOLIDAY SPLURGE

There are numerous temptations to make you abandon your budgeting plans for the summer, including planning your yearly trip to the North Coast or enjoying your overpriced mussels by the beach. Regardless of the trigger, people tend to crave a quick endorphin rush, causing them to splurge their money and purchase things they don’t necessarily need. Such financial decisions can cause more delay in reaching your financial goals and creating long-term financial security. So, without further ado, here are 4 ways to help you plan your budget and be more mindful of your spending this summer.

Pinpoint what you truly value the most
The allure of the latest summer collections, clever advertising, and discounts entice people to splurge on random purchases, including apparel, food, activities, etc. It’s not inevitable that you will lose track of your finances the moment the warm weather draws near. What’s important is to identify which purchase holds actual value so that you can allocate a portion of your budget toward that and align it with your financial goals. This level of awareness helps you fix your spending habits, and make better and more informed financial decisions, ultimately allowing you to experience greater fulfillment and stability in your life.

Ask yourself if your purchase is worth the hours you spend at the workplace
Before swiping your credit card, you must assess whether your impulse purchase is worth all the hours you have spent in the workplace. For instance, say you want to purchase new shoes worth EGP 3000 but get paid 100 EGP an hour; pause and ask yourself, “Is this really worth 30 hours of my hard work?” Remember, the endorphin rush you’ll get from your purchase can only offer short-term satisfaction but can cause long-term impact on your financial goals. Hence, it is always recommended to take a step back and evaluate whether what you are purchasing is truly worth the hard work and effort you dedicate to your work.
Pay your credit card bills on time
If you are a credit card user, make sure you use it wisely by paying your monthly payments on time to steer away from late payment fees and penalties that can build up and impact your budget. Doing so empowers you to enhance your budget planning and experience numerous benefits from effectively managing your finances stress-free. Additionally, paying on time can help you maintain a positive credit score, which is a plus for favorable interest rates and financial freedom. It also gives you a comprehensive outlook on your available funds, allowing you to evaluate your financial situation when shaping your budget and helping you stay focused on your goals.
Learn to plan ahead
Now, being mindful of your consumption does not necessarily signify that you cannot enjoy your vacation to the fullest. One key strategy to help you indulge in your favorite activities throughout the summer is planning ahead and setting aside a certain amount of your income and labeling it as “Entertainment Money”. By taking this step, you will allow yourself to make conscious decisions without depriving yourself of what gives you joy and experiencing any financial regret.
In conclusion, creating a comprehensive and realistic budget can be everyone’s least favorite task especially during summer. Despite your best intentions, resisting the temptation to overspend is no easy feat. The bottom line is, with the right mentality and little organizational skills, you can overcome the urge to overindulge and take control of your financial future.

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