Live Like a Mensch

As a big reader, my big splurge is on books. If I can't find what I want at the used book store, I will hit up the retail places - if I have a coupon or other type of discount to hand.  

Here's what psychologists have learned about how spending contributes to happiness:

1) Money spent on experiences is more likely to make us happy than money spent on stuff. (Hence, your choice to splurge on vacations is likely a sound one.)

2) Small indulgences that occur on a regular basis bring more happiness than big one-time splurges--e.g., a coffee and Danish every Sunday as opposed to a gourmet meal at a fancy restaurant once a year on your anniversary. (Thus, you're also on the right track with the Brie.)

3) Money spent on others, whether in the form of charitable donations or gifts to family and friends, brings more happiness than money spent on yourself.

Of course, there are some grey areas. For example, buying books, as anneb10 suggests, is really buying the experience of reading them. And buying something for yourself could also be a way of giving pleasure to others (e.g., fancy underwear that you think your husband will really like). So there's a bit of wiggle room.

So if you want to spend this $200 in a way that will maximize your enjoyment of it, what I would suggest is splitting it up into $20 increments and giving yourself an extra $20 of "mad money" to spend every month for the next ten months. And then, to double the impact, look for ways to spend that $20 each month on an experience, like a movie night or a coffee date. Or a hunk of Brie every week. Or a gift for a friend. That way, instead of enjoying your birthday gift just once, you get to keep enjoying it throughout the year.

Our family just splurged on tickets to see Disney's Lion King for Broadway. It's coming to city near us in May and we are so excited! I would say that's a middlin' splurge with tickets for the four of us about the same amount as your birthday check. I like the fact that we'll be making memories, but it's close enough that we won't have to spend large amounts on food and lodging as well.

You can get double or triple the pleasure out of a book splurge if you buy something a friend would love, lend the book to that person, and then discuss it.  It's like going out to dinner, far more fun to share with a companion.  

Second splurge is an upgrade on a decorator item, so you can enjoy it every day.  

Third:  a day trip, well documented.

As I've mentioned previously , I'm a big believer in aiming for a modest (under $500) tax refund