5 Money Rules You Should Not Always Follow

2. Stop spending money on frivolous things

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If there’s one nearly universal piece of financial advice, it’s this one: Stop spending money on frivolous stuff you don’t need. It’s advice that makes sense for a lot of people, especially those who are up to their ears in credit card debt and can’t save because of out-of-control spending.

But it’s easy to take the no frivolous spending rule too far and end up feeling guilty about all but the most necessary purchases. Does anyone really need a $5 latte or a six-pack of premium microbrew? No. But sometimes those extras are worth it. That’s especially true when you’re spending money on experiences, not things. The former are more likely to increase your happiness than the latter, research has shown.

“If you splurge too often, you’re going to lose your focus on saving for your emergency fund or other goals,” Maggie Baker, a Philadelphia-based psychologist who specializes in money issues, told LearnVest. “But if you don’t ever splurge, you’re going to feel frustrated and defeated and think, ‘This is no fun.’ You don’t want to spend too much — or be scared of spending anything.”

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