Splurging vs Spending – Do You Know The Difference?

Splurging versus spending can be difficult to grasp. Many people want to have an emergency fund, a large retirement fund or a diversified investment portfolio while other people prioritize a big house, fancy cars and exotic vacations. Regardless of your financial footing, understanding where your money is going is critical. A good part of this is determining how you spend your money – are you spending or splurging?

Splurging vs Spending: Do you Know The Difference?

Splurging vs Spending

Knowing the difference between these two will help you to manage your finances. It is nice to be able to spend some extra money on yourself every once in awhile, but you need to remember your limits.


Spending versus splurging can be compared to needs versus wants. Typically you spend on needs and want to get the cheapest price for the best quality product. A splurge generally focuses around a want and price sensitivity goes out the window. You don’t often hear that someone “splurged” on toilet paper! You splurge on a leather purse, a diamond bracelet or a cashmere sweater. Splurges are high quality items that will command a premium price. The motivation to splurge on an item can be psychological – also known as retail therapy. A splurge can also be a once in a lifetime opportunity for example, you travel to a country on a trip and splurge on a locally made product that you cannot get at home. Regardless of the source of the “want”, splurges will cost you more than you would normally be willing to pay and should be approached very carefully. Buyer’s remorse is a tough experience but you certainly do not want to feel it on a splurge purchase. Try not to let the excitement of a splurge overtake you. Pull from your frugal side and try to get a deal if you can even on a splurge.

Splurging vs. Spending


Spending will be a more methodical process and less exciting. These purchases happen many times in a lifetime and price sensitivity should be at a high. Couponing and haggling is often an option when spending money on a daily basis. The decision to buy is made for you by the nature of the product and you will know offhand what type of the product you want and how much you are willing to pay.


Here are other Frugal Living Tips:

6 Tips to Increase Your Savings

Save Money on your Monthly Bills

FREE Monthly Budget Template

Creating a Budget

Also, make sure you checkout the Frugal Fanatic Facebook page and follow us on Pinterest for DIY projects, recipes, money saving tips and more.

How do you evaluate spending versus splurging, please share in the comments below.


Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge