If you always pass on dinners out, resist temptations in the shopping aisles – and think new clothes are luxuries you don’t need to indulge in, then you may need to loosen those purse strings a little.
Sandra Hanna, one of authors of The Smart Cookies’ Guide to Making More Dough, says, ’It may sound odd, but it is possible to save too much. While you should stash money away for the future, if you can’t spend money on things that bring you happiness you could end up feeling deprived, causing you to go on a buying spree later, which could ruin your bottom line.’
Identify a few things worth splurging on – a weekend trip, dinner with the girls – and build those purchases into your budget. Planning it out beforehand will help you avoid impulse buys – and keep you out of the red.