"When to splurge on luxury items?"

This is a question left unanswered by many finance blog posts and books I've come across.

Most talk about budgets, frugal spending and how you should only spend on things you absolutely need.

While this is true and is necessary for a sound financial foundation, it makes sticking to the process hard for most of us.

To stick to any habit or process for years, you must make it rewarding.

And in the case of finances, that is achieved not by being too frugal but by taking conscious purchase decisions.

So:

How to consciously decide when to buy something that's a luxury rather than a necessity?

I use this simple rule that I learned from Ramit Sethi:

If it itches for too long and won't make a dent in your finances, go for it.

When I bought my mirrorless camera in 2020, it wasn't a one-day decision.

I didn't wake up one morning with the feeling that I wanted to buy a $2,500 camera today. 😂

That would've been nuts and probably a terrible impulse decision.

But instead, I woke up one day and decided I was going to scratch this itch I'd been having for the last two or more years.

I could've lived without making that substantial purchase, but I've loved every moment with my camera ever since I bought it.

So:

The next time you're confused about buying that expensive thing, give it time.

Don't hit the buy button or swipe your card right away.

Wait a few days, weeks or preferably more if it's not a time-sensitive purchase.

If you're still thinking about the item after a week or so, that's your indication to scratch that itch if you can afford it.

With that said, now, let's move on to the rest of this newsletter issue:

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