Spending and saving are the inverse of each other. Spend more means you save less. Save more means you spend less.
People let their “Present Self” over power the needs of their “Future Self.” This conflict within yourself is what financial planning is all about … how to balance the two.
My article displayed below, syndicated through AdviceIQ, discusses some myths when we think about retirement spending.
I will add to this blog this myth about investing: simply invest and the money will grow. This impression came from a strong bull market in the 80’s and 90’s. It is clearer today this isn’t true … however, the opposite impression appears to be taking hold of some: if you invest you’ll lose your shirt. Use a prudent approach to the markets and balance it with realistic saving and spending goals.
This popular blog I posted shows the trade offs and that the key ingredient to reaching a future goal is saving, not returns.
The purpose of financial planning is to dispel myths and learn how to spend and save in a balanced manner.
Original blog … Think You Will Spend Less Later? … that inspired my syndicated article.
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