Happy 4th. of July! Given it is a holiday week and many folks are enjoying some well-earned time off, I’ll keep this post fairly short. As planners, we often harp on saving money, and while that is very important, it’s not always the best approach. Confused by that counter message?
What I am getting at is that when it comes to spending money, you need to take the Goldilocks approach: not too much, not too little, just right! Most Americans are conditioned through marketing to buy more than they need. Go ahead, all the extras are only a few bucks more! Act now and get a second free! That thinking and manner of spending can get you into hot water over time.
Your goal should be to strike a balance of quality, cost, and fulfillment. When shopping for something, make sure you are not buying at such a low price that the item you need is of low quality and will in the end cost you more because it needs to be replaced multiple times. Conversely, don’t overspend and buy features and services that you really will not use and simply don’t need.
Gym memberships come to mind. Salesmen will quite often get you to buy the ultimate package pitching it as convenience, cost savings, and value because you deserve it! But how many times are you really going to go to the gym? Do you need 24-hour access? Towel service? If you are only going a few times per week, you likely will not need the top-tier service.
Here are some tips to keep in mind when it comes to spending your money. Don’t shop for an item based solely on price. Compare features, quality, and read reviews with a critical eye. Don’t fall for zero percent, low-down/no-down offers. Be aware of hidden backend fees on leases, special offers, and promotions. Be careful with rewards credit cards and balance transfers – they may cost more in the end! A brand name does not always guarantee high quality and value for your money so make sure you know the item or service before parting with your money.
Ultimately, take your time and do your homework when spending your money. Research your product or service and match it to your actual need and budget. Shop smart! As an independent Certified Financial Planner™, I can help you plan for purchases and services.Contact me and let’s get started. #talktometuesday #education #Hireaplanner #stressfree #savings #cheap #dontbecheap #spendmoney #CFPPro #savemoney #spendwisely