If you receive a $5,000 bonus from your employer, what would you do with it? Maybe you'll think taking a vacation to Fiji or buying something new or experiencing an event is the best thing to do with that money. All of those things have something in common – they’re instantly gratifying. And exciting! Your vacation is relaxing while you’re there. Those clothes, shoes, or sports memorabilia look great. Those backstage passes at your favorite show are amazing. But… then what?
Today’s memories and social media posts fuel tomorrow’s desires. The more we experience, the more we want to do. But it’s a vicious cycle. “Doing” requires money. And the more you do in the present, the less you save for the future.
Let’s say instead of putting that $5,000 toward an immediately gratifying experience or purchase, you meet with an advisor and put it into an investment account. Over the course of a few years, that $5,000 has the potential to grow. At that point in time, your priorities may be different, but you’ll have the flexibility to do more because you sacrificed that immediate gratification. You could still take a vacation, buy a new car, or go on that shopping spree. But you could also help send one of your kids to school, donate to a charity, or even retire a little bit earlier.
We all struggle with balancing the desire to live today with the prudence of saving for tomorrow. But over the years, we’ve learned that there’s nothing more painful than wishing you knew something then that you know now.
Saving might be the boring option today, but we have seen it pay off time and again. We encourage you to meet with one of our advisers to discuss your long-term goals and determining how you can have the freedom in the future to live the way you hope to.