THERE are seasons in life when spending feels easier to justify. It may be because of a celebration, a family occasion, a big sale, a vacation, or simply the feeling that one deserves to reward himself after working hard. During these moments, the usual financial discipline that people try to practice throughout the year can easily be forgotten. What was once considered unnecessary suddenly becomes acceptable. What was once postponed suddenly becomes urgent.
This is why financial planners are often concerned during periods when people are emotionally encouraged to spend. The problem is not celebration itself. There is nothing wrong with enjoying life, giving gifts, eating out with family, or rewarding oneself. The problem begins when spending is no longer guided by cash flow, but by emotion, credit limits and expected future income.
I once heard of a young manager who earned a decent monthly income. He had several credit cards, but he rarely used them. Since he expected additional income to arrive, he felt more confident about spending. At first, the purchases looked manageable. A discounted appliance was available on installment, so he swiped his card. Then came a pair of shoes that was being sold at a large discount. He swiped again. Then he bought personal items, gifts for relatives, treats for friends and a few things that did not seem expensive when viewed individually.
By the time the billing statements arrived, the total amount had become much larger than he expected. This is how credit card debt often grows. Rarely does it begin with one dramatic decision. More often, it begins with many small decisions that feel harmless at the moment. Because no cash is physically leaving the wallet, the pain of spending is delayed. The buyer enjoys the product or experience now, while the real cost appears later.
From a financial planning perspective, one of the biggest mistakes people make is spending money before they actually receive it. They buy now because they expect a bonus, commission, incentive or other future income to arrive later. In theory, this sounds reasonable. In reality, it is risky because expected money is not yet money in hand. When the additional income finally arrives, it may already have other uses. It may be spent on food, family needs, emergencies or other obligations. What was supposed to pay for previous purchases may itself be consumed by new spending.
This is where budgeting becomes important. Before any period of heavy spending, one must already decide how much can be spent without affecting regular obligations. The amount should be based on actual available cash, not on credit limits. A credit limit is not extra income. It is simply the maximum amount the bank is willing to lend. There is a big difference between the two.
Planning ahead also helps. If there are people to give gifts to, expenses to prepare for, or purchases to make, it is better to list them early and assign a realistic amount for each. This prevents emotional buying. Without a list, one can easily be influenced by discounts, advertisements and last-minute pressure. A sale may look attractive, but even a discounted item becomes expensive if it was never needed in the first place.
This does not mean that people should avoid all purchases or become overly strict with themselves. Personal finance should not remove joy from life. What it should do is place boundaries around spending so that today’s enjoyment does not become tomorrow’s burden.
Cash remains one of the simplest tools for controlling expenses. When spending becomes easier than monitoring, it may be useful to use cash or debit payments instead of credit. This gives a clearer sense of how much money is still available. Once the budget is gone, spending must stop. It may sound old-fashioned, but it works because it forces discipline.
If one must use a credit card, records should be kept. Every swipe should be recorded. Many people remember the price of one item but forget the total of all items combined. The real cost of uncontrolled credit card spending is not only the original purchase. It is the interest, penalties and finance charges that come after when the full amount cannot be paid.
The lesson is not to stop celebrating, giving or enjoying life. The lesson is to celebrate within one’s means. Generosity is good, but it should not be financed by debt that will create stress later. Rewards are enjoyable, but they should not compromise emergency funds, insurance premiums, rent, tuition or other important obligations.
Rienzie Biolena is a Registered Financial Planner of RFP Philippines. To learn more about personal financial planning, attend the 117th RFP program this August 2026. Email info@rfp.ph or visit rfp.ph to learn more about the program.
