Page 25 - ARUBA TODAY

BUSINESS Tuesday 2 april 2019
A25

Liz Weston: How to know when it’s OK to spend

By LIZ WESTON sitions often are rougher
Associated Press than anticipated and take
Some people are much longer than anticipated,”
better savers than spend- says neuropsychologist
ers. That can become a Moira Somers in Winnipeg,
problem. Manitoba, author of “Ad-
Certified financial planner vice That Sticks. “
DeDe Jones recalls clients, Plus, many retirees who
retired schoolteachers, have trouble spending are
who loved to travel but worried their savings won’t
kept putting off the trip to last. Financial planners typi-
China and Southeast Asia cally run computer-assisted
they’d always wanted to simulations to show clients
take. the probabilities that their
“The husband started hav- portfolios will last through
ing health issues, and they various markets at given
missed the opportunity,” levels of spending. Even
says Jones, managing di- then, some people have
rector of Innovative Finan- trouble turning on the tap.
cial in Lakewood, Colo- “For some, it is so severe
rado. “The widow is doing that we refer to them as
fine financially, but is feel- In this Feb. 20, 2019, file photo shoppers ride the escalator at Saks Fifth Avenue’s flagship midtown financial anorexics,” says
ing regret.” Manhattan store in New York. CFP John Gugle, chief in-
The ability to delay grati- Associated Press vestment officer of Alpha
fication is important for of UCLA and Marissa A. rated as mediocre to use Having a financial plan can Financial Advisors in Char-
building wealth. But grati- Sharif of the University of the pass before it expired also help. Knowing you’re lotte, North Carolina. “They
fication delayed too long Pennsylvania used a vari- and expressed more regret on track saving toward re- literally are convinced that
can leave us unhappy with ety of experiments, includ- about their choice than tirement and other goals they will run out of money
the results. ing having participants those who exercised the can give you permission despite our efforts to show
Many of us experience imagine they had a free pass sooner. to enjoy your spending, them that it is virtually im-
this on a minor level when pass to a concert venue, to Interestingly, some of the says CFP Charlie Bolognino, possible.”
we put off using gift cards, track people’s willingness techniques that help peo- president of Side-by-Side Others are able to start
drinking that special wine to indulge and their self-re- ple delay gratification can Financial Planning in Plym- spending once they focus
or booking a trip with our ported satisfaction with the also help them avoid de- outh, Minnesota. on what’s most important
frequent flyer miles. We results. Participants could laying it too long. “In a sense, our spending to them, planners say.
wait for the “perfect” time see the list of 20 musical One technique is called then becomes something AN ANTIDOTE TO FEAR OF
to indulge, and sometimes acts that could potentially “pre-commitment.” We we’re expected to do: ‘I’m SPENDING
miss out entirely — the store play the venue over the make hard decisions in ad- just following the plan!’” Bo- “One specific thing we sug-
goes out of business, the 15-week season, but each vance, such as agreeing to lognino says. gest people do is to invest
wine turns to vinegar, the band was announced only future automatic increases PERMISSION TO START in memories, meaning do
miles expire. the week it would be ap- in our 401(k) contributions or SPENDING things like take your kids
THE TROUBLE WITH ‘SPECIAL’ pearing. People given a paying for a dozen personal Switching from saving to and grandkids on vaca-
Recent research published “VIP access” pass waited training sessions at the gym. spending can be hard for tions that will be meaning-
in the Journal of Marketing longer to use it, hoping for For those who have trouble some people when they ful for you and they will
Behavior found that once a more popular act, than spending, pre-commitment reach retirement age. remember all their lives,”
we label something as the people given less ex- could mean buying the air- These reluctant spenders says CFP John M. Scherer
“special,” we can wait too clusive passes. Those who line tickets for that special won’t be able to change , founder of Trinity Finan-
long to enjoy it. delayed often wound up trip or setting a deadline for overnight. cial Planning in Middleton,
Researchers Suzanne Shu settling for an act they had making a purchase. “It’s a transition, and tran- Wisconsin.q