It’s easy to splurge on things you love: vacationing, dinners out, new clothes. This year, more consumers plan to splurge compared to last year.

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According to McKinsey & Company,  a whopping 40% of consumers expressed an intent to splurge over the next three months. That figure represents an increase from 38% at the end of 2023.

Splurging doesn’t have to fill you with shame and leave your wallet empty. To the contrary — You can learn to splurge guilt-free.

5 Ways You Can Splurge Guilt-Free

Here are five ways that you can still splurge but not feel too guilty, according to a recent YouTube video by George Kamel.

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  1. Pay Cash: Splurging using money you don’t actually have is a dangerous financial habit. This is especially true if you’re using credit cards — which almost always carry high interest rates — to pay for extra expenses you can probably do without. Be sure to only splurge on what you can afford, and live below your means so you have extra money left over to save and invest.
  2. Remember what’s important to you: Setting clear priorities for yourself is key to keeping your splurging under control. Ask yourself: what are my short-term and long-term financial goals? How much do I want to have saved up by the end of the year? Definitive goals can make all the difference. 
  3. Know the difference between needs and wants: Your needs should always be prioritized over your wants. Housing. utilities, groceries and healthcare costs are the most important. Then you can consider spending on your wants. Differentiating between the two can make it easier to confine splurging to the discretionary income you have left over each month. 
  4. Create a budget: Budgeting is crucial to keeping splurging under control. Make a spreadsheet of your monthly expenses to track the costs of necessary spending. From there, you’ll be able to visualize the exact dollar amount you have left to splurge each month without going over your budget.
  5. Honor your budget: After you’ve created your budget, you’ll have to hold yourself accountable for sticking to it. Resist the temptation to overspend. Your wallet will thank you.

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This article originally appeared on George Kamel: 5 Ways You Can Splurge but Not Feel Guilty

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