I was making the rounds on my reading yesterday and came across an interesting post by Lazy Man and Money. In it he mentions that a full-time opportunity has come up that will net him more money so he’s no longer going to be blogging full-time. But, what I really liked about the post was the lesson that even finance bloggers still face the same issues as everyone else when it comes to increased spending. I certainly wish LM well in his pursuits!

What I wanted to talk about, though was the idea of increased spending. One of the commenter’s on LM’s blog said that increased spending is ok if your income increases, much the same as your spending would decrease if your income decreased. The point I believe he was trying to make was that it’s still about living within your means. The amount of money you spend isn’t really the factor, and whether or not it increases or decreases depends entirely on what your means are.

What an interesting concept! We beat ourselves up if we spend more than we think we should, wouldn’t it be nice not to worry about it? Of course, I’m not advocating that we should increase spending for the sake of increasing spending. I still believe that we need to live within our means and live responsibly to avoid future debt. But, if we’re funding our retirement accounts, have 3-6 months saved in an emergency fund, and have no debt – like LM – should we really be concerned with a small influx in consumer spending? Especially when we’re making more money?

I think not.

Increased spending can be dangerous, though. If left unchecked, it would be very easy for anyone to rack up credit card debt, drain their emergency funds, and generally blow through their higher income. So, while I like the general idea of having the freedom to do a little more with that higher income, I also say that it can get out of hand if you let it.

As LM said, even though finance bloggers and those who are financially savvy are aware of the psychological triggers, it doesn’t make us immune to them. We get caught up in impulse buying just like everyone else. But, we can usually avoid overspending by sticking to our principles. And, one of the biggest holes that needs fixing in any budget is lack of planning. As LM experienced, and I’m really bad about this too, it’s the forgetting to plan ahead that can sometimes catch us in a spending trap. For example, forgetting to pack your lunch, make your morning coffee, or other things you could avoid by planning ahead.

Still, at the end of the day, if you’re making more money, these unexpected expenses from lack of planning are really not that big of a deal. In the end, I want to remember that I lived a long full life, not that I micromanaged my finances so much that I berated myself for lunch out occasionally. Some of you may disagree, and if you’re in debt, I totally understand. I was there once, too. I micromanaged every aspect of my spending. But, if the basics are taken care of and there is no debt, what’s the point of living frugally if you can’t enjoy the fruits of your labor occasionally?

So, what it amounts to is this. Yes, I think if you’re making more income it is ok to spend more money – within reason. I do not believe it is wise to go hog wild, as the saying goes, but having a lunch out a few times a week probably isn’t going to break you. The key to this, as with anything, is moderation and living within your means.

Thoughts? Do you think if you’ve been living a frugal lifestyle on one income that you can afford to spend a little more if that income increases? Or, are you of the opinion that this is a bad thing?

Related posts:

1. First one to increase their Fico by 100 points wins!
2. How To Avoid Emotional Spending
3. Emotional Spending: Ways to curb that unhealthy habit
4. Increasing Your Credit Limit: 5 Dangers
5. The Seven Habits to Financial Success – Part III