Perception is not always reality. This is certainly true when it comes to financial planning. Many people feel that advisors are here to pull the reigns when spending gets out of control. Well, that is true in some cases (maybe all cases for some advisors), but for my practice it seems that guiding my clients to enjoy their money is more the norm.
I live in a city where a radio show-host clobbers listeners to eat rice and beans today so that filet can be enjoyed tomorrow. I take issue with this mentality. I have seen the side effects of this tactic. People can develop the inability to enjoy their money (Rice and beans becomes the only acceptable emotional option). Becoming a scrooge is not what most people desire, but it happens more often that I care to admit.
Balance is the key to enjoying the gifts our financial stability can produce. While I don’t advocate overspending (and sometimes do see that in my practice), creating balance and enjoying our money is truly rewarding when properly executed.
Most advisors won’t tell their clients to spend their money. Often this is driven by the commissioned connection to the clients’ assets, but, as a Fee-Only Advisor, my job is to give the clients advice that is in their best interest and not my back pocket. I always strive to deliver holistic advice, and often this advice is to loosen the purse strings….enjoy life!
I don’t have a crystal ball and have no idea where the market is heading, but I do tell my clients that creating memories with family and friends is always a great investment. Life is short (or long depending how you look at it). Life is a wonderful gift (but also challenging), so we have to create balance with our assets.
Do you find yourself constantly with your nose to the grindstone? Are you always saving for tomorrow? What about today? Are you one who finds yourself saying “someday?” Well, someday needs to start today.
Maybe this line of thinking sounds antithetical to normal financial rhetoric. Maybe the advice you have been receiving is the wrong advice. By no means am I saying it’s acceptable to blow all your cash. More importantly, I’m simply stating we need perspective when it comes to managing our assets and putting them to good use.
One of the best ways I have found to strike a balance is to determine if goals and values mesh. This is one of my favorite aspects of my job. I love helping my clients look for and fund their “it.” Again, it’s about balance…..simply haplessly spending money will leave you empty. Spending with purpose that is connected to your goals, values, and your “it” will create joy…..most often leaving you with memories that our priceless.
So, the next time you hear some talking head on the TV(or the radio) telling you to squirrel all you money into the next greatest investment, think about the big picture. Think about the things you are doing with your money. Enjoy it (obviously, within reason). Go out and create memories you can carry with you for a lifetime!