Buy the latte — but pay the price.
No, not in guilt. In savings.
The “Treat Yourself Tax” is the latest budget-savvy hack sweeping social media, and it’s got impulse shoppers doing double takes — one at the receipt, and another at their savings account.
The hack? Every time you splurge on something nonessential — say, a $7 iced coffee, a $30 plumping lip gloss, or a $250 “emotional support” handbag — you immediately transfer that exact amount into savings.
Spend it, save it. Guilt-free gratification.
“It’s about looking at your money, figuring out what brings you joy — big or small — and building that in on purpose,” said Nadia Vanderhall, financial planner and founder of The Brands and Bands, who shared her expert take with Bustle.
Unlike hardcore budgets that make you feel like you’re grounded for life, this one lets you live a little — and still stash cash for the future.
“This is the kind of hack that works because it’s flexible and real,” Vanderhall explained. “It helps you stick to your budget without it feeling like punishment.”
It’s a concept tailor-made for a generation who knows their coffee order better than their 401(k) balance — and whose shopping carts are often fuller than their bank accounts.
But Vanderhall says this simple mental money match-up can help shoppers pause before hitting “buy now.”
“When you think about the tax, you start to check in with yourself and ask, ‘Do I really want this or am I just stressed or bored?’” she said. “You get more intentional with your money.”
That moment of reflection echoes other recent money-saving tips that have gone viral, like the “screenshot hack” — where TikTokkers suggest screenshotting tempting products instead of buying them immediately, to give your brain (and budget) time to cool off.
And don’t forget the “1% rule,” which advises that if a non-essential item costs more than that percentage of your annual income, take at least 24 hours to think before pulling the trigger.
If you make $60K, as originally shared by Glen James of My Millennial Money via CNBC, that means sleeping on any purchase over $600 — no matter how chic the trench coat.
These hacks all share a common goal: cutting spending without cutting joy.
“If you can’t enjoy your money at all, it’s harder to stay consistent,” Vanderhall told Bustle.
“Not enjoying it can make you resent it. It’s about staying grounded and connected to your why, even when you’re saving. You get to connect with your money and build a relationship.”
Best of all, the “Treat Yourself Tax” works for any income — whether your splurge is a $4 lip balm or a $400 Dyson Airwrap.
Buy something — bank something.
“This gives you breathing room,” Vanderhall said. “It’s also good for impulse shoppers because now you’ve got a plan. No guilt, no guessing, just structure. Everyone, no matter the income, can implement this.”
Over time, you might even redefine what counts as a treat.
“The treat also doesn’t have to break the bank,” Vanderhall added. “It can be a solo movie date, that $12 mascara mini you love, or just something that makes you feel good.”
So, go ahead — treat yourself. Just don’t forget to tax yourself, too.
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