When it comes to wealth planning, your spending plan is an overlooked component of how successful you will be in achieving your plan. But not why you may think.
Aligning your spending to what you value is one of the critical aspects of achieving your wealth management plan. Spending on what supports your values, cost aside, helps you buy into your plan and the direction you want to go with your financial and lifestyle goals.
Fast Company had a recent piece titled How The Happiest People in the World Spend Their Money. In it, the writer goes into detail based on a new book, “Are You As Busy As You Think?” by Laura Vanderkam. Her new book offers approaches for a modern, more flexible reality to finances. Laura’s message is this, Work, life, and money are intertwined intimately, and yet they’re rarely addressed together. As the traditional boundaries that used to define “work” and “life” disappear, the conventional beliefs related to money must also evolve.
- Be more mindful of what your money could buy. Make purchases that improve your happiness. For many, that means spending on experiences, not things.
- Challenge the big house, big yard, two-car “American dream.”
- Don’t just scrimp and save. Find ways to increase your earnings.
- Rethink retirement. In other words, don’t expect to ever retire.