At Planning Alternatives, we know that financial independence often includes the freedom to make significant purchases that reflect your lifestyle and values. However, extravagant purchase planning requires careful consideration to ensure such decisions align with your long-term financial goals. In this guide, we’ll help you assess whether an extravagant purchase is the right move for your financial future and overall vision of independence.
Embracing Freedom to Spend: Extravagant Purchase Planning
Wealthy individuals who’ve spent years or decades working hard, saving diligently and dutifully following a carefully constructed financial plan often confront a unique challenge: getting comfortable actually spending their money. Thoughts involving legacy concerns, retirement expenses and possible future healthcare needs are deeply ingrained and always top of mind.
But even factoring in those issues and expenses, what if you still have ample money available to afford things you merely “want” – things that you may even deem as extravagant? We understand you might experience ambivalence (or guilt) about spending on yourself. This is where extravagant purchase planning can help to let you know that you’re not alone. We’ve heard from a range of clients that various life events can shift how they think about their wealth. Life generally speaking may feel more uncertain and fragile for some people while others have hunkered down and saved significant sums of money. As such, both individuals and families seem more apt to revisit their goals and retirement plans, as they explore ways to act now on certain pricey pursuits or big-ticket purchases.
So, what do you do if you now want to start spending money on yourself after many years of conscientious saving and delayed gratification?
Finding Clarity Through Extravagant Purchase Planning Process
First, recognize that encountering this “challenge” is a product of your success. You may feel conflicted, but you should also allow yourself to enjoy a sense of pride. Having room in your discretionary budget for an “extravagant” purchase is indeed a good thing – and it’s OK to give yourself permission to mull it over.
We are equipped to help you gain clarity during your decision-making process, so please reach out to your Planning Alternatives advisor. Our objective is to always help you “live your best life” as defined by you. Are you considering buying a vacation home or brand new luxury vehicle? Finally renovating the kitchen? Weighing the idea of spending two of the colder months in a posh island resort? Extravagant purchase planning can help you think about major purchases from both a head and heart perspective, ensuring these decisions align with your broader financial goals and lifestyle vision.
How We Support Your Big Financial Decisions
The bottom line is that money should be seen as a means to an end, not an end itself. Feeling ambivalence about a significant purchase, particularly if you’re a highly disciplined saver, can leave you immobilized and stuck in a decidedly unfun should-I-or-should-I-not loop. Don’t let fears or guilt automatically keep you from enjoying the fruits of all your labor.
With extravagant purchase planning, we can help arm you with the financial insights and projections you need to make the most informed decision possible. We can offer perspective about how the purchase fits into your big picture. And we can be an impartial sound board. What you deem “extravagant” might not be extravagant at all, particularly if it ultimately brings you more peace, fulfillment, happiness or better physical or emotional health.
How we can help you approach a lofty expense:
We will help you to define your true goal and all related costs of the purchase.
We can identify your spend margin and how it will likely affect your overall financial plan.
We’ll also talk through unknown scenarios (unforeseen medical expenses, for instance) to make sure you understand the big picture and that you’re comfortable with all the numbers before the buy.
We will explain any liquidity risks associated with making the purchase.
We will help you evaluate the tax implications.
By integrating extravagant purchase planning into your financial strategy, we can help ensure that your big-ticket purchases align with both your lifestyle and long-term wealth goals.
