James Conole recently encountered a profound discussion about financial planning that challenges conventional wisdom. While most people focus on investment strategies, retirement savings, and tax optimization, there’s a more fundamental question we need to address first: What can we do or buy to make this year special?
The discussion began with some eye-opening statistics about wealth perception. The average American believes they need $2.2 million to feel wealthy, while millionaires set their bar at $7.5 million. What’s striking is that regardless of current wealth, people consistently feel they need double their current assets to feel financially secure.
This perpetual chase for “more” creates a dangerous trap. We keep pushing our happiness and life satisfaction into the future, believing we’ll finally feel content when we reach that next financial milestone. But here’s the truth: that feeling of “enough” never arrives unless we actively cultivate it now.
Real Stories of Meaningful Spending
One particularly touching story came from Colole’s client named Steph. In 2006, she and her husband received an unexpected inheritance of $30,000. Instead of investing it, they bought a 1974 fishing boat. This decision transformed their lives, creating countless memories through adventures, family time, and romantic moments on the water. While the money could have grown significantly if invested, Steph maintains they wouldn’t change their decision – the experiences were priceless.
Sure, we could have invested responsibly into the market, but the value of that boat season is priceless to us.
Other clients shared their aspirations:
- Staying in an overwater bungalow in exotic locations
- Traveling across the country in an RV
- Attending major sporting events
- Taking family trips to Europe
- Engaging in charitable work
The Urgency of Now
Perhaps the most poignant response came from a client who shared her regret. She and her husband had dreamed of traveling through Canada by train and continuing their shared love of trout fishing. Sadly, he passed away before they could realize these dreams. This sobering reminder emphasizes that tomorrow isn’t guaranteed, and waiting for the “perfect time” might mean missing our chance entirely.
Taking Action
To turn these insights into action, consider these steps:
- Identify one specific thing you want to do or buy this year
- Evaluate honestly whether you can afford it without compromising other goals
- Set a specific date for making it happen
- Determine exactly where the money will come from
The true measure of a great financial plan isn’t just about growing wealth – it’s about living well. Money is merely a tool to create experiences, memories, and meaning in our lives. If we’re not using it for these purposes, we’re missing the point entirely.
Frequently Asked Questions
Q: How do I balance saving for the future with enjoying life now?
The key is finding a middle ground. While saving for the future is important, allocating some funds for meaningful experiences today helps develop the skill of using money to enhance your life. This balance ensures you’re not perpetually postponing happiness.
Q: What if I can’t afford my dream experience right now?
Start smaller. Not every meaningful experience needs to be expensive. Consider scaled-down versions of your dream or alternative experiences that capture the same essence but fit your current budget.
Q: How can I determine if a purchase is worth the investment?
Consider the potential memories and experiences it will create rather than just the monetary value. Ask yourself if this purchase will contribute to your life satisfaction and create lasting memories with loved ones.
Q: Should I feel guilty about spending money on experiences instead of investing it?
Not if it’s within your means and aligns with your values. Remember that investing in experiences that enhance your quality of life is also a form of investment – one that pays dividends in happiness and personal fulfillment.
Q: What if I’m worried about future financial security?
While financial security is important, waiting until you feel completely secure might mean never enjoying your money. Find a balance by setting aside both savings and a reasonable budget for experiences that make life meaningful now.
