3315: Control The Urge To Splurge: How To Save More Money by Sam of Financial Samurai on Smart Money Habits

Summary

Episode Overview

Title: Control The Urge To Splurge: How To Save More Money
Host: Diania Merriam
Source Post: Sam of Financial Samurai
Date: October 12, 2025

This episode explores how to recognize, manage, and ultimately resist the temptation to overspend on non-essential items. Through personal storytelling and actionable strategies, Sam of Financial Samurai breaks down the psychological triggers behind “splurge” purchases, provides a framework for smarter spending, and connects these habits to the long-term goal of achieving financial independence. Diania Merriam narrates and adds her own reflections on materialism, happiness, and the path to financial freedom.

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Key Discussion Points & Insights

1. The Psychology of Splurging

• Temptation in Everyday Life: Sam sets the stage by acknowledging how modern marketing, social pressures like FOMO, and the “YOLO economy” constantly push us to spend more than we intend.

  • "We're constantly tempted to spend money and splurge on things we don't need." (03:37)

• A Personal Example: Sam recounts his 2009 experience needing a new pair of work shoes, and instead of buying affordable replacements, indulged in expensive designer loafers.

  • The initial intention was to enjoy them briefly and return them before the 30-day policy expired, but he ended up keeping them due to comfort and inertia.

2. The Pitfalls of Return Policies and Credit Cards

• Dangerous Rationalizations: Sam explains how using credit cards can psychologically distance us from the reality of spending, making splurges feel less “real” at the point of purchase.

  • "On that day, I'd really spent zero dollars because credit cards are wonderful tools to temporarily borrow something without any cash outlay. But of course that's a dangerous mentality." (05:36)

• Return Policy Trap: While the ability to return items seems like a way to mitigate regret, Sam points out most people rarely follow through.

3. Strategies to Control the Urge to Splurge

Sam outlines his five core “defenses” against unnecessary spending:

A. Recognize the Fleeting Nature of Splurge Euphoria (07:26)

• The excitement peaks at the purchase and dissipates soon after, replaced by dread when bills arrive.

B. Be Disciplined About Return Policies (07:52)

• If you do indulge, maximize the enjoyment within the return policy window but don’t miss the deadline.

C. Calculate Pre-Tax Cost & Time Investment (08:13)

• "Take the cost of the item and multiply it by 130% to get the approximate pre tax income you need to make. Next, take this pre tax income and divide it by your hourly wage to figure out how many hours you need to work to buy that good."

D. Never Pay Full Retail (08:53)

• Find similar goods at lower prices; make bargain hunting into a personal challenge.

E. Monitor Your Credit Card Bill (09:13)

• The visual reminder of expenses can be a motivator to avoid future splurges.

• Sam emphasizes tying purchases (or avoidance thereof) to long-term financial goals, namely maximizing investment returns and accelerating early retirement.

4. Splurge Within Reason

• Sam doesn’t advocate for total deprivation, suggesting special purchases (like a luxury watch after a decade-long wait) can be enjoyed if approached responsibly.

  • "For a car, my limit is spending no more than 1/10 of my gross income." (09:56)

• The warning is against excess (“that second watch, fifth pair of jeans, or third LV handbag”).

5. Diania Merriam’s Reflections on Abundance

• Diania expands on Sam’s post by connecting the urge to splurge with modern consumer conditioning and shares her own interpretation of abundance:
  • "If you reduce your expenses without shifting your desires, it will feel like deprivation." (11:04)
  • "In the words of Mr. Money Mustache, 'Luxury is a weakness. It's also a distraction from more sustainable forms of pleasure and happiness.'" (11:17)
  • She concludes that real wealth is having time, relationships, and freedom, not possessions.

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Notable Quotes & Memorable Moments

• On the psychology of spending:
  • "Where people seem to get in trouble is when they actually keep the item. Go figure." (05:50) — Sam
• On credit card dangers:
  • "Credit cards are wonderful tools to temporarily borrow something without any cash outlay. But of course that's a dangerous mentality." (05:36) — Sam
• On the euphoria of purchasing:
  • "The initial point of purchase is generally the highest point of euphoria, especially when not paying cash." (07:30) — Sam
• On retail markups:
  • "The reason why luxury goods manufacturer LVMH has 90% gross margins is because they charge customers nine times their manufacturing cost." (08:53) — Sam
• On redefining abundance:
  • "If you reduce your expenses without shifting your desires, it will feel like deprivation." (11:04) — Diania
  • "Most people will never experience the joy that comes with time abundance because they're too focused on having material abundance." (11:45) — Diania

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Timestamps for Key Segments

• 03:37 – Introduction to the urge to splurge and Sam’s 2009 shoe story
• 05:36 – Dangers of credit card mentality & return policy loophole
• 07:26 – Sam’s five defense strategies against splurging
• 08:13 – Calculating pre-tax costs and what purchases really “cost” in time
• 08:53 – Never pay full retail and make shopping a savings adventure
• 09:56 – Reasonable splurging and knowing your limits
• 11:04 – Diania’s reflection on luxury, abundance, and the psychology of spending

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Conclusion & Takeaways

• Recognize that the “splurge euphoria” is fleeting, and true satisfaction comes from aligning spending with values and goals.
• Use practical tricks—like calculating the true (pre-tax) cost and number of work hours for each purchase—to build mindful spending habits.
• Don’t deny yourself all luxuries, but make intentional, rare splurges the exception, not the rule.
• Genuine wealth is measured more by freedom and time than by possessions.

Final Thought:
“Moving away from materialistic tendencies has been a secret weapon for me in the pursuit of financial freedom. It's helped me realize that happiness and satisfaction in life doesn't come from possessions. It's much more driven by the expansion of possibilities.” (11:58) — Diania Merriam

Check back for more actionable financial wisdom on the next episode of Optimal Finance Daily!

Transcript

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Is optimal Finance Daily Control the Urge to Splurge how to Save More Money By Sam of financialsamurai.com Are your spending habits out of control? You're not alone. We're constantly tempted to spend money and splurge on things we don't need. Clever marketing tactics, fomo, the YOLO economy, and the desire for more have become a common part of daily life. But it doesn't have to stay that way. If you care enough about yourself and your future, you can learn how to control the urge to splurge. By the end of this post, you'll be on your way to saving more money. The Temptation to Splurge I went shopping one weekend in 2009 to buy myself a new pair of comfortable brown leather loafers for work. I'd worn my $60 timberland loafers from Shoe Pavilion, a discount store, for two years. Sadly, they were starting to get holes. I have to say, when it comes time to shop for work attire, I'm just so uninterested. Back when I was working a traditional office job, shopping for work clothes was a work expense I resented. Dressing reasonably professionally was a necessity at my job. Thus, I felt annoyed that I couldn't spend my money on what I wanted. Ever since I left my grueling day job, retired early and blogged for fun, I get to wear what I want every day. My ideal outfit, which I get to enjoy now, is a T shirt, a well worn pair of jeans and flip flops. But back in 2009, I still had to abide by a dress code. That weekend I went shoe shopping. I decided I wasn't gonna buy the same old boring shoes anymore. I was on a shoe revolt. The I can return it later splurge excuse. Instead of going to DSW or Ross Dress for less, I went to Barney's New York to buy a $435 pair of Todd's loafers. I'd been eyeing that shoe for more than two years and just couldn't find my size when it went on sale for only $250 last Christmas. It's a good looking shoe with beautiful leather and a nice rubber sole. However, there's no way in heck it's worth $435 or five times what I'd normally pay for shoes. That said, I bought it anyway because I wanted to enjoy the shoe, at least temporarily before I'd see the charge come up on my credit card bill online. On that day, I'd really spent zero dollars because credit cards are wonderful tools to temporarily borrow something without any cash outlay. But of course that's a dangerous mentality. Where people seem to get in trouble is when they actually keep the item. Go figure. Barney's has a standard 30 day return policy. I thought I could control the urge to splurge. I wanted to wear the shoes in the house and marvel at them for a couple of weeks and then wake up, smack myself and realize that $435 is just an absolutely ridiculous sum of money to spend on loafers and return them. I was just being lazy and didn't search cheaper stores for equally attractive shoes. In the meantime, I wanted to enjoy those loafers to my heart's content. If I could control the urge to splurge by just temporarily buying them and then returning them within 30 days, why not avoid the temptation to splurge if you can't afford it? Well, in the end, I did not return those expensive loafers. They were so darn comfortable. Fortunately, I had the financial means to pay them off in full when my credit card came due. I got fantastic mileage out of them and they held up extremely well. But I ultimately failed to control the Urge to Splurge if I had taken the time to look for a similar looking pair of shoes at a discount store, I'm sure I would have been just as happy. Perhaps even more happy since I would have saved five times as much money. It's obviously best to avoid the temptation to splurge if you want to save money, and especially so if you can't afford it. Even though you might have every intention of returning an expensive item before the return policy, you may fail to do so. If you control the urge to splurge, you can invest more. Perhaps one day your investments might generate enough passive income to cover your living expenses. That would be huge. Or if you can't wait that long, then having more investments is always great during a bull market. We've been in a bull market from 2009 to 2021 so far. For some long term investors, their investment returns have started to consistently surpass their day job income. As a result, they can now splurge a lot more how to Control the Urge to Splurge My system of resisting the urge to splurge is quite simple. Recognize splurge euphoria is brief. Splurge on things if you really want it, but make sure there's a return policy and that you understand the terms. The initial point of purchase is generally the highest point of euphoria, especially when not paying cash. The euphoria of a splurge tends to fade over time and the dread mounts when the bill comes due. If there was a return policy on cars, I'd be all over it. But as my wife always says, when I'm about to buy a new car, there's no return policy. 2. Never miss a return policy deadline. If you are very disciplined, you can try to temporarily enjoy a splurge and return it. Enjoy the item for the life of the return policy minus one day. You need to enjoy the good for as long as possible to rid yourself of the desire for that good. But you better return it one day before it's due at the latest because you may forget or the store may try and manipulate you into not being able to return the good. However, the safest way to control the urge to splurge is to not buy it in the first place. Period. Number 3 Calculate the pre tax cost of a splurge before you pay for it. This is one of my favorite tips to control the urge to splurge. Take the cost of the item and multiply it by 130% to get the approximate pre tax income you need to make Next, take this pre tax income and divide it by your hourly wage to figure out how many hours you need to work to buy that good. The first exercise is generally enough to make me not buy anything wasteful. It's the second item that really pushes me over the edge. Number four Remind yourself never to pay full retail. The reason why luxury goods manufacturer LVMH has 90% gross margins is because they charge customers nine times their manufacturing cost. Try your hardest to find a similar good at a much cheaper price. Make it an adventure in savings, if you will. There are so many products available today that chances are high you can find something cheaper. Take a good look at your credit card bill. Finally, take a look at that credit card bill online and tell yourself how good it'll feel not to have to pay such debt and return the darn thing. The reward for not splurging is cash and savings that remain in your bank account. Control the urge to splurge by prioritizing your financial goals. Think about the lost investment returns you'll be missing and remind yourself that any money you spend is less money you'll have for achieving early retirement. Splurge within Reason after all these defenses, there are some things in life you just have to have. Such as that fine Rolex watch you've waited 10 years for, ever since graduation. Whatever the case may be, I firmly believe that one should be able to treat oneself within reason. For a car, my limit is spending no more than 1/10 of my gross income. It's just when you want to have that second watch, that fifth pair of jeans or third LV handbag where things start spiraling out of control. I think you'll have fun resisting the urge to splurge with the five defenses mentioned. Don't ever feel guilty returning an item. It's your right and your early retirement prerogative. You just listened to the post titled Control the Urge to how to Save More Money by Sam of financialsamurai.com.

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You reduce your expenses without shifting your desires, it will feel like deprivation. Many of us want material abundance because we've been conditioned since birth to be good consumers and desire luxuries. In the words of Mr. Money Mustache, Luxury is a weakness. It's also a distraction from more sustainable forms of pleasure and happiness. If you can operate from the mindset that the best things in life are free, you're less likely to feel deprived. If you can stop focusing on the stuff you want to buy and instead start exploring how you want to use your time, who you want to spend it with, and what you want to create, the answers might surprise you. Most people will never experience the joy that comes with time abundance because they're too focused on having material abundance. While I don't have a big house or a luxury car or brand name clothing, I still feel rich because I have a rock solid support system, the resources and time for creative expression, and an able body that can go on long hikes, create beautiful meals and twist into various shapes during yoga. Moving away from materialistic tendencies has been a secret weapon for me in the pursuit of financial freedom. It's helped me realize that happiness and satisfaction in life doesn't come from possessions. It's much more driven by the expansion of possibilities. And that will do it for another edition of Optimal Finance Daily. Thank you for listening and be sure to come back tomorrow for more where optimal life awaits.