Celebrating National Splurge Day is Actually Good for Your Savings Goals, According to New GoBankingRates.com Report

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June 18th is National Splurge Day, which on the surface, may seem to encourage consumers to blow their budgets. However, personal finance site, http://www.GoBankingRates.com, investigates the psychology of spending money and uncovers that splurging, on occasion, can actually help savers reach their financial goals faster.

Splurging

Splurging

If you want to buy a new watch, pair of shoes and pair of pants, enter these items into the pool, then commit to splurging on the best-priced item of the three.

The U.S. economy is built on consumerism and the public has welcomed their part in the process. According to The Wall Street Journal, as a whole, consumers spend an average of $1.2 trillion each year on unnecessary goods and services. With the upcoming holiday, National Splurge Day, which is June 18, 2013, GoBankingRates.com investigates the psychological effect of splurging and discovers that indulging every now and then helps shoppers' bottom line in terms of saving money.

Holiday Insights defines National Splurge Day as “a day to treat yourself excessively to anything you want … Maybe you want to buy a steak, and the budget is a little tight. Toss out the reservations, and go for it today.” While this attitude can be dangerous to a person's financial plan, GoBankingRates.com explains that splurging on just one day isn't so bad at all.

In fact, the GoBankingRates.com report reveals that this mindset – allowing a splurge every once in a while – provides consumers with benefits such as greater happiness overall and reduced overall sense of guilt. Additionally, the new investigation emphasizes that splurging on one-off days like National Splurge Day can “help people avoid a feeling of scarcity.” In minimizing the sense of wanting, Americans avoid the perception that their savings goals are not paying off, explains Stacey Bumpus, GoBankingRates.com contributor.

To help National Splurge Day participants balance their splurging and savings, GoBankingRates.com offers five recommendations to guide shoppers enjoy a financially-healthy holiday:

1. Budget the Splurge

Although it may seem counterintuitive, budgeting for National Splurge Day is essential preparation. GoBankingRates.com emphasizes the feeling of being rewarded over spontaneity.

2. Create a Splurge Pool

GoBankingRates.com encourages consumers who are eyeing more than one item to add those goods into their “splurge pool.” On the big day, shoppers can indulge by purchasing the item with the best price.

“If you want to buy a new watch, pair of shoes and pair of pants, enter these items into the pool, then commit to splurging on the best-priced item of the three,” says Bumpus. “This helps to avoid spending too much money on one item you 'must' have.”

See all five ways to celebrate National Splurge Day: http://www.gobankingrates.com/savings-account/celebrate-national-splurge-day-frivolous-spending-can-grow-savings-account/.

For questions about this report or to speak with a GoBankingRates.com editor, please use the contact information below.

About GoBankingRates.com

GoBankingRates.com is a national website dedicated to connecting readers with the best interest rates on financial services nationwide, as well as informative personal finance content, news and tools. GoBankingRates.com collects interest rate information from more than 4,000 U.S. banks and credit unions, making it the only online rates aggregator with the ability to provide the most comprehensive and authentic local interest rate information.

Additionally, GoBankingRates.com partners with a number of major media outlets such as Business Insider and US News & World Report to provide compelling and edifying personal finance content. Its expert editors have been featured and quoted on several premier finance websites like Yahoo! Finance, Forbes, The Street, Huffington Post and more.

Contact:

Jaime Catmull, Director of Public Relations
GoBankingRates.com
JaimeC(at)GoBankingRates(dot)com
310.297.9233 x261

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Sources:
The Wall Street Journal, “Number of the Week: Americans Buy More Stuff They Don’t Need,” April 2011.
Holiday Insights, “More Holidays: Splurge Day.”

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