Reasons to shed the guilt and enjoy your wealth.

The money messages you heard growing up may have affected you without even realizing it. Did you ever hear someone say, “It is a crime that they have so much money” or “It is sinful to spend that much money on a house” (or a car, vacation, dress…)? Years ago, Comedian Joan Rivers famously bragged about spending $3 million on her daughter’s wedding. At the time, I vividly recall a relative of mine remarking what a sin that was. For the record, according to Wikipedia, Joan Rivers died with an estate valued at $150 million. She was certainly within her means to spend that much. Behaviors that were a sin to my relative were the norm in Hollywood.

Is spending money really a sin? Is it really a crime if others consider your spending lavish or frivolous? You may have heard the saying, “Money is the root of all evil.” Most people don’t realize that this is a misquotation. The actual line is from I Timothy 6:10, which says “For the love of money is the root of all evil.” 

Did you receive similar money messages growing up? Were you taught that money was not meant for frivolous spending (since it doesn’t grow on trees), but instead saved and spent only on basic needs, such as food, clothing, and shelter? Have you ever felt guilty about spending money on a new jacket, car, vacation or even a top-of-the-line garden tractor? 

As advisors to clients who are the first-generation in their family to have wealth, we often sense remorse and guilt in client meetings. This guilt is associated with vacation plans or large, recent purchases. The good news is that we are not in the business of judging you. If fact, when done responsibly, spending may be a wonderful way to way to help and support others, and not something negative.

To illustrate, consider the example of a wedding. Assume that a wealthy family in a small town decides to have a big $1 million blow-out wedding for their daughter. Do you think the local florist considers it a crime to make a profit on all those flower arrangements? Would it be irresponsible to pay employees for the overtime they will put in? The local musicians will be happy for the extra cash earned for performing at such an event. The caterers and local wedding coordinators will be thrilled. If security detail is desired, the local off-duty police officers would appreciate the extra income. The nearest boutique will have patrons wanting new outfits for the grand affair. Then there are the hair salons, manicurists, and others who will benefit from this activity.

Spend consciously, save unconsciously 

So, while it is important to be responsible with your resources and always work towards the most important long-range goal, there is no reason you cannot enjoy the fruits of your labor. That is why we often preach “spend consciously, save unconsciously.” Most people do the opposite. They spend without thinking about it and then consider saving from anything left over. 

We are in the business of helping busy people make smart financial decisions. The first step is always determining your goals and dreams. Again, we make it a point to NOT judge what those may be. That includes planning for fabulous vacations, magnificent homes, sporty cars, and yes—big blow-out weddings. We help you figure out how to get there, without harming your more important long-term retirement goals. 

With our planning software, we can help you to accurately model for life’s important experiences. Please let us help you plan for the financial impact of these events. We promise you that we will not call it a sin!

Kristina Bolhouse, CPA/PFS, CFP®

Vice President/Shareholder

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