Life is all about balance, right? So, when making your budget, make a plan that you can save to meet your financial goals while also creating a splurge fund to treat yourself when you want to. 

When setting up your monthly budget, it’s important to allot enough money to pay all your necessities—but once you’ve banked that, the leftover funds are where the fun starts. Set a certain amount to go into your savings account each month. You can even set up your direct deposit to send a portion of your paycheck to a savings account immediately, before you even miss the money. Genius, right? We know! 

Choose a savings account that allows your cash to make more money while it sits in that account. There are many options to choose from that help you accrue interest while also allowing easy and penalty-free access to your money when you need it. Just be sure to set a savings goal that you can keep working towards and celebrate when you reach it. 

After you’ve set your savings goals and set up your monthly goals—maybe you’re setting aside a specific amount for a new laptop or bike—then, create a third column for your splurges! This unspecified savings can act like a buffer fund to tide you over when you feel the urge to splurge. 

Having a splurge fund means when you see that gorgeous jumpsuit of your dreams, you can say yes without blowing your budget. It means that you don’t have to feel guilty about getting a nice dinner with your girlfriends. And it means covering those last few dollars you need to meet your savings goal to get that new item you want earlier than you expected—hello new laptop! When you limit yourself too much with out-of-reach savings goals, you can feel deprived and end up overspending—but not with this plan.

Keep your splurge fund as part your current savings account or open a special savings account just for this money. If you choose to open another account, you can be sure to stay on track with your short-term and long-term savings goals, from stashing away $5,000 in emergency money or saving much more to a deposit on a new house. Decide on the account that works best for your lifestyle, like these options from U.S. Bank, then embrace the freedom you’ll feel when you can keep your saving—and have your splurges too!