Financial Expert Reveals Simple Budgeting Trick to Enjoy Life Without Overspending
Renier is a Cape Town–based entrepreneur and financial lender with over 13 years’ experience in the short-term lending space, supporting individuals and families across South Africa. He is passionate about turning his financial acumen into real-life budgeting and saving advice for modern life.
A financial expert has revealed a simple budgeting method that could help people manage their money more effectively while still enjoying spontaneous purchases.
Source: Original
Renier Botha, who specialises in financial assistance at Finance27, said setting aside a small amount of money for splurges could help limit the amount of budget-derailing impulse spending affecting your finances.
Long-term financial discipline
In advice shared with consumers, which has resonated with both British and South African households, Botha explained that the same characteristics that make splurge pots so effective also help maintain long-term financial discipline.
PAY ATTENTION: Briefly News is now on YouTube! Check out our interviews on Briefly TV Life now!
"A splurge pot has a lot of psychological benefits that can protect your main budget, which decreases the chance of overspending," he said.
Instead of dipping into savings or emergency funds for spontaneous purchases, the body of your finances remains intact via structured spending pots, reducing the amount of financial stress that is produced.
Financial stress is a by-product created as people try to maintain strict budgets, and a build-up contributes to unpleasant money management symptoms like guilt and eventual budget abandonment.
"Splurge pots also replenish your financial well-being because they are full of psychological benefits and realistic expectations," he told consumers.
"These specific elements are depleted from the budget when restricting spending too severely."
He went on to explain that psychological satisfaction supports long-term financial discipline while realistic expectations are crucial to maintaining sustainable money habits. Like many financial experts, Botha added that saving regularly was obviously better than overspending.
"Just remember, no spending is better than overspending. However, if you are going to enjoy life and try to build wealth, remember to try a splurge pot before abandoning your budget," he said.
Psychological needs
Financial advice for 2025 shows that saving strategies remain challenging, but the introduction of splurge pots, due partly to the recognition of psychological needs, signals improved budget management for many households.
The approach suggested by Botha shows that individuals create a specific fund for spontaneous purchases, and the total benefits for the average person are significant compared to traditional budgeting methods, showing a rate of success greater than conventional saving techniques.
Without the freedom to make occasional impulsive purchases, the strict budget can quite literally be suffocating. A splurge pot can be a great way of maintaining financial discipline and enjoying life, meaning saving money isn't the chore you imagined it would be.
Botha isn't the first financial advisor to link having a splurge pot with helping to combat budget fatigue. Recent financial psychology research found that helpful mental accounting practices in splurge pots helped the mind process spending decisions better by boosting key psychological factors.
Budget abandonment is a result of a combination of processes that occur after we restrict spending too severely. In addition to psychological fatigue, overly strict budgets cause you to feel deprived, which can leave you vulnerable to overspending.
Source: Getty Images
Needs VS wants
This, as well as disrupted financial planning from unrealistic restrictions, can all combine to make you feel extremely unmotivated about saving money. One approach to budgeting — roughly allocating 50% to needs, 30% to wants, and 20% to savings — takes the average adult about one month to adapt to, financial experts say.
Financial advisors recommend people set aside a specific amount for splurge spending — around 5-10% of their disposable income — per month.
3 More budget-related stories from Briefly News
- Briefly News previously reported that a car salesman shared which cars people who earn R8 000 can buy.
- A young lady shared what R200 can get someone from the grocery store, and South Africans couldn't believe what she bought. People had mixed feelings about it.
- A content creator shared the amount of food she bought with R500 and shared her thoughts on the cost of living in South Africa.
Disclaimer: The views and opinions expressed here are those of the author and do not necessarily reflect the official policy or position of Briefly News.
PAY ATTENTION: Сheck out news that is picked exactly for YOU - click on “Recommended for you” and enjoy!
Source: Briefly News
