Of course, a lot of financial planning is about the future. But if people lose sight of who they are in the moment, their goals can backfire, says Preston Cherry, a certified financial planner in Green Bay, Wisconsin and founder and president of Concurrent Financial Planning.
“Starving who you are right now … can be frustrating,” said Cherry, who also sits on CNBC’s financial advisory board. This, he says, could cause you to abandon your plans entirely.
Some things are easier to do when you’re younger, says Cherry, and “some experiences may be more appropriate now than later, and over time, can improve well-being and reduce regret.”
But Cherry said people shouldn’t have to choose between a good life now and a good life later.
Here’s his advice for balancing the two.
1. “Wanting is also needing”
The line between “want” and “need” is often too strict for people, Cherry said. “In context, wants are also needs.” It might be helpful to think about the relationship between the two, he said.
For example, while saving for old age is important, it’s something many people want to do, Cherry said.that is because The pressure to not do this makes it hard to enjoy the moment.
On the other hand, he says, spending money in a way that makes you feel good now can make it easier to be financially disciplined in the future.
“Give yourself some tolerance and permission to consume,” Cherry says.
2. “Choose Fun”
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Cherry advises people to spend their money on things that bring them joy, but also to “choose pleasure selectively.”
For one, you don’t want random purchases that get in the way of your progress toward important goals, he says. But you also don’t want to waste money on products or services that don’t really bring happiness or meaning to your life, he said.
He advises people to reflect on the expenses that are really worth it to them.
“People can find joy in all domains, from gifts to experiences, and one category may bring more joy in one stage of life than another,” Cherry said. “I’m a champion of people who bring joy to people. or, (and) I encourage people to do so if it’s healthy for them and within their means.”