Tuesday, July 15, 2014

Limited vs. Unlimited Life: Real Financial Implications


Recently, I was scrolling through my Facebook newsfeed, and I came across two very different perspectives that got me thinking about how I see the world. The reality is that we all have what is called worldview - a way in which we order our lives, then make decisions about how to live. Most of the time, our worldview is socially constructed by years of experiences and observations. We take in a variety of messages from many different sources, and they all contribute to the way in which we order our days. 

So, what did I see on Facebook that got me thinking? Take a minute to read these quotes. How do they sit with you? What do you like about them, and what do you disagree with?

"Life is short. Time is fast. No replay. No rewind. So enjoy every moment as it comes." -- Dr. Meg Meeker

“Don’t let anyone convince you to buy things you don’t need. Develop power over purchase and learn to say no.” -- Dave Ramsey

In the context of our financial lives, both quotes have very strong messages. The first tells me that I should spend whatever money I need to so that I can enjoy the moment. Just yesterday, after lunch with a good friend of mine, I stumbled into a kids’ store with my son. I had no intention of buying anything (first mistake right there), yet somehow ended up walking out of the store with $26 worth of toys. Why did I do this? The same reason as any father probably would - ecause of the momentary joy I got from seeing his smiling face with a new dump truck and puzzle. A la the first quote, I was living for the moment. 

The second quote evokes another part of me - the financial planner, the one who wants to master money. It reminds me that I should be saving, not spending. It reinforces the idea that, while I do want to experience joy today, I also want to have the resources to be able to enjoy 30 years from now. Once in the store, I decided I was just going to get a puzzle, but then I saw the huge dump truck with a simple sign that said $15, and I thought, “Wow, what a good deal.” Mind you, my son already has a large dump truck, yet I fell for it. Whoever put that $15 sales tag on the truck convinced me that it was a good deal. 

Here is the reality, and we all know this but often lose sight of it: everyday, we are given hundreds (if not thousands) of buying messages and opportunities. While I am a fan of personal responsibility, we must always realize we are working against a strong head wind when it comes to saying no to impulse purchases. We are not absolved of our responsibility for our decision making, but we also must remember that it is a bit more complex than just saying no.  

Ultimately, reconciling the desire to enjoy today (i.e. spend) with not buying things you don't need is an ongoing process in the development of my own worldview. As we move through life, we are constantly bombarded with messages about what to think, how to think, and when to think it. The challenge for your financial life is to become increasingly aware of your deepest values and to make decisions from that place. We have to live in the mindframe that we are not guaranteed tomorrow, but there is a pretty good chance that it will come. Finding the balance in your life between joy today and joy many years from now is much more of a fine art than an exact science. 


Feel free to give me a call to talk more at 980-275-1627.

Ed Coambs


Edited by Reena Arora of Arora Media, connect on Facebook
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