Buy That Latte And Save In Other Ways

Maintaining a budget amid the higher costs of living requires consistency; however, you can still include small splurges within your everyday spending. That mocha latte with whipped cream you love? Got for it. Your favorite $6 coffee order can indeed peacefully coexist within your overall spending plan. Adapting a conscious spending plan can blend expenses tied to your values, joys and even long-term financial goals.

There’s no need to plan your spending around every single purchase you make. And while budgeting may seem daunting, it doesn’t have to be all consuming. With the right mindset and tools, you’ll be able to navigate uncertain economic times and inflation, all while enjoying the little things in life.

Think about it: Is switching from a barista-crafted flat white to a home-brewed cup of joe really going to help you save for that dream European vacation? Even if it did, what about the hit your overall wellbeing and happiness?

Let’s explore how you can spend your money wisely without depriving yourself.

Think About the Purchase-Pleasure Connection

One popular approach to saving money is to cut out as many discretionary purchases as possible. For some people, that works. However, for others that kind of self-denial can be difficult to keep up over time.

Instead, make an inventory of all your non-essential purchases and evaluate how much happiness each one brings you. While you’re drawing up your list, remember that research shows that paying for experiences, such as vacations, tends to make people happier than buying material goods. Happiness is connected to your overall wellbeing, which contributes to a healthier life. So, healthy connections, travel and strong community connections can have more of a positive impact on your overall health.

Make a list of the experiences— those small and large— that bring you joy. Anything that detracts from your wellbeing can be considered as ones to cut to save money with less pain.

READ MORE: Get More, Peace of Mind

Offset Your Purchases with Automated Savings

Save and spend at the same time.

You can offset your purchases with automatic transfers to your savings account. Let’s say you spend $35 a week at your favorite coffee shop; consider setting up a weekly transfer of $50 to savings and come out $780 ahead at the end of the year, not including interest. Depositing those savings into a high yield savings account can help your savings go even further than your deposits alone.

In addition to popular apps on the market, there are other savings trends that can help by making saving more of a game. You might consider creating a sinking fund for that big trip or much needed new purchase as a guide to help you along your way. Whatever your goal may be, there are multiple savings options that can help. Round up purchases to the nearest dollar amount and have the extra money go toward that trip you want to take. Set a weekly budget for groceries, and if you spend less than that amount, have the difference transferred to your specified savings account.

And if you prefer to be more hands- on with your money, make it a habit to add up your discretionary purchases each week and transfer at least that amount to savings.

READ MORE: 6 Steps To Create a Basic Budget That Works for You

Outsmart Adaptation

Are you often finding yourself less than satisfied over the longer term? You’re not alone. Turns out we’re all on a hedonic treadmill, also known as the adaptation phenomenon. Put simply, we get used to our salary, home and our favorite coffee drink and eventually feel dissatisfied with them. To lift our spirits, we then need more, or to try something new.

There is good news, though: smaller, more frequent splurges can bring you more joy than larger, less frequent ones. And enjoying a small pleasure that improves your mood often leads to more positive feelings and greater resilience to stress. In other words, treating yourself to a delicious coffee might be the perfect way to spend your money and increase your happiness. Enjoy every sip—chances are you’ve earned them.

Make the Most of Your Spending with Money Mindfulness

You get more pleasure out of any purchase, be it a coffee or a car, when you savor it. So, if you love your latte and everything that comes with it—the friendly barista, the quaint coffee shop décor and, of course, the caffeine surge—it’s probably the perfect way to spend a few dollars.

On the other hand, if you don’t even notice the aroma and down the coffee as quickly as possible so you can get on with your day, making your own drip coffee is a great way to spend less.

Ultimately, both the choice and experience are yours to curate.

While it’s important to stay on track for your savings goals, from retirement to homeownership, there are some that suggest saving too much can detract from life experiences—a feeling you missed out on opportunities to enjoy your life. As with all things in life, try to find the balance.

So, go ahead and enjoy your latte. Thinking about what spending habits should you break right now? Continue reading to learn more.

LEARN MORE: Explore Synchrony’s Savings Product Today to Enhance Your Lifestyle.