Are you wracked with guilt when you indulge in a non-essential luxury? On the other hand, do you feel deprived when you forego a tempting treat to stay on track with your savings plan? You’re not alone. The challenging economy has left many people struggling to enjoy their hard-earned money while staying committed to their financial goals. Here are some ideas for striking the right balance.
Plan ahead. If you plan your vacation or purchase well in advance, it will seem less extravagant. Set a savings goal and determine a time frame to reach it.
Establish a realistic budget. Live within a budget that allows for some recreational spending. That way you can enjoy an occasional well-deserved night on the town without blowing your budget.
Schedule time to enjoy your money. With today’s fast-paced lifestyles, it’s more important than ever to stop and smell the roses occasionally. You’ll feel a greater sense of accomplishment if you plan to spend some of your leisure dollars recharging your battery.
Maintain spending discipline. Have you ever walked into a store with no intention of buying an item that you find irresistible – and on sale? To avoid the impulse to buy, weigh carefully the value of your potential purchase and compare the importance to the goal you may jeopardize by making it.
Monitor your progress against your goals. When you see that you’re making progress toward your goals, it makes an occasional indulgence easier to swallow. I’m always available to talk about ways to balance your financial life. That way you can enjoy what life has to offer today, yet be prepared for a comfortable future.
Renée A. Hanson, CFP®, CEP®, CDFA™, CFS, is a private wealth advisor with Hanson, Ayala & Associates, a private wealth advisory practice of Ameriprise Financial Services, Inc. Her passion is in helping women achieve their dreams and financial goals, regardless of life’s many obstacles. Renée is licensed/registered to do business with U.S. residents only in the states of AZ, CA, CO, GA, IA, IL, MI, MN, MT, NH, NJ, NM, NY, OH, PA, SC, TX, VA, WA, WI. Please visit: www.reneehanson.com to learn more.
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