The Deferred Happiness Model

You can’t escape them.  The “experts” are everywhere, on TV and radio – gurus like Clark Howard, Suze Orman, and Dave Ramsey distribute financial advice to the aspirational.  In almost every single case the financial advice given tells you that if you don’t save today, you will be broke tomorrow.   Really?

I just sat with clients with a net worth around $6 million.  They could not possibly spend all their money if we invested 100 percent in cash forever.  They could take no risk and achieve every goal.  But they were worried about spending $30,000 to renovate their kitchen because interest rates were so low and the economic outlook appears bleak. 

Don’t get me wrong; they have money because they were frugal and they did not make an investment mistake.  But they were so fearful, they couldn’t enjoy life.  The constant bombardment of bad news has them pinching pennies.

Once you have money, your risk is not spending.  Your risk is investing in stocks and chasing yields because you think you have to earn something on your money.  Don’t force a square peg in a round hole.  Take advantage of the out of work contractors and empty hotel rooms.  Go and enjoy.  You earned it!