You vote every day as you spend your money. You endorse this brand over that, this vegetable over that. Maybe one reason so many people like to shop is that making choices is empowering and feels like an expression of your individuality.
The marketing industry has studied how we make decisions. They study whether we look left or right when we enter a department store and what colors and signs get our attention. Their brilliant skill can make it hard to resist buying something that was not on our list when we entered the store.
Another pressure on our spending is the behavior of our friends and colleagues. In the pre-Covid-19 days, suppose your office mates and boss decided to go to a local restaurant for camaraderie and a meal. You are new to the office and you are also in a period of being especially careful with your spending because you are paying down a credit card as fast as you can. You order a modestly priced entrée and nothing extra. Everyone else is ordering drinks, appetizers, and desserts.
The others decide to split the bill the way they always do. Oops. Now you are paying for food and drink that you did not consume. Because you are new, you are not comfortable being the only voice to say, “No, I’m just going to pay for my meal.” What’s the risk if you say that, and if you don’t? The good news is you were on track to do what is best for you and temporarily you are pushed off course.
Your plan to be careful is in conflict with wanting to be accepted into the group. You acquiesce and make a note to self to avoid going to dinner with this crowd. Your response is understandable even if avoiding situations may not be the best long-term solution. Gradually we can become more graceful in handling these challenges.
Another example of how we can go off track is moving too fast, not giving ourselves time to think. If we are going to be true to ourselves and do what is in our own best interest, we need to count to ten and ask: If I spend this money on this whatever it is, does it reflect my values? Does it advance my goals?
Tell me how you spend your money and I’ll tell you who you are.
Yes, you vote your values when you spend money. As a financial planner, I’ve reviewed innumerable analyses of cash flow. They tell a story about what you value most.
Test this out. Make a list of what you spent in the last week or two or longer. Where did the money go? If you could call those dollars back, would you? In what ways are you better off because of what you spent? If you are not better off, you can make a course correction now and enjoy more of what really matters to you.
Money choices like other choices we make come from something deep in us. Allow yourself the fascinating exploration of what’s running you, what’s pushing you into your decisions.
When you gain more control and focus, you can delight in being the best of yourself.
Penelope S. Tzougros, PhD, ChFC, CLU. Financial Planner, Author, National Speaker. Wealthy Choices.com. 51 Sawyer Road, Suite 340, Waltham, MA 02453. Direct to Penelope 781 577 2311.
All investing involves risk including loss of principal. No strategy assures success or protects against loss. This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.
Penelope@wealthychoices.com. Fax 781 893 3565. In all 50 states, Penelope S. Tzougros is registered with, and securities and advisory services are offered through, LPL Financial, Member FINRA/SIPC. She is affiliated with Bay Financial Associates, LLC. Financial Planning is offered