Enjoy now or plan for later? How to do both

It’s summer! A chance to let your hair down and savour the moment. But is your financial plan flexible enough to do this? Can you enjoy ‘now’ or are you holding too much back for the future?

What event would make you say, “I just have to be there”?

This summer, thousands of 40-somethings will don their bucket hats and prepare to relive Cool Britannia. Oasis are playing together for the first time in 16 years. It’s a reunion that seemed like it might never happen.

Demand for tickets was massive, with many fans paying well over the original asking price. But for those who’d missed the opportunity to see the band in their glory years, splashing out extra for this once-in-a-lifetime moment was worth it – they didn’t want to miss out twice.

If Liam and Noel aren’t your thing, perhaps you were one of those who were swept up by Taylor Swift mania, when her record-breaking Eras Tour came to the UK last year? Or is your dream trip more sports related? Seeing the Lions play in Australia, or heading to North America for football’s World Cup next year will be on many peoples’ bucket lists.

None of these dreams come cheap though. The World Cup group games are estimated to start at more than US$300 and that’s before you’ve factored in travel and hotels. If you’re diligently saving for the future, it can seem hard to justify shelling out for something of this size. But what if you miss an opportunity you might have been able to afford?

The sandwich generation

When you’ve worked hard to save, it’s not unusual to feel uncomfortable about spending your money. Especially with the general feeling of uncertainty everywhere we turn; it can feel somehow profligate or inappropriate to book a big holiday or spend big when things look far from rosy elsewhere.

This feeling is particularly true if you’re part of the so-called ‘sandwich generation’ who are under particular pressure. These are adults in their 40s or above, simultaneously supporting two generations: their children through school, university or early in their career, and elderly relatives needing additional care. Some

With an ageing population and younger generations becoming more dependent on their parents, the number feeling stuck in the middle is likely to go up. It means that for many, the big open highway that people thought would be there after the children turned 18 will seem a lot further off.

How to use it wisely now, not just later

Given these pressures, and without being too negative, it’s fair to say there’s a finite window of opportunity to enjoy life while you can. What if, after saving hard all your life, you wait too long to enjoy spending the money you’ve saved? What if you could have enjoyed it sooner, while you’re fit and healthy?

The trouble is, it’s hard to know how much of an impact enjoying the now might have on your financial future. Which is why as financial planners, we help clients with this very conundrum using cashflow modelling.

This tool helps you model various situations, such as changes in income, expenses, or investment returns to see how they might impact you. But you can also test out different events or lifestyle choices and see how different paths influence your finances over the long term, so that you can make more informed decisions about the present.

For example, we can show you the impact of spending some of your money now rather than saving it all for the future. This will give you the confidence about whether you can afford to tick off a few more things on your bucket list now, rather than wait.

We can’t promise that you can afford every single once-in-a-lifetime opportunity that comes up, but with a good financial plan in place, you can see how it’s possible to balance now and the future, and examine any potential sacrifices you might have to make, before you even have to make a decision.

Glory days

Saving for the future gives us something positive to look forward to, but it’s important not to only look forward. “Not yet” often turns into “never” and we can be left thinking, “If only I’d done it while I had the chance.”

Sometimes you just have to act now, as one of our AAB Wealth Financial Planners did last month. Martyn’s lifetime ambition was to see Bruce Springsteen live, but each time he toured, the timing wasn’t right. At 75, Bruce is still putting on spectacular shows. But for how much longer? This year, Martyn finally ticked off seeing The Boss from his bucket list. (As an added bonus, the show in Liverpool also featured Sir Paul McCartney as a special guest, how about that as a reward for taking the time to enjoy things now).

None of us know exactly what the future holds. We can’t guarantee good health or control changing circumstances. But we can make sure our financial plan allows us to enjoy the things we love – at the right time – rather than deferring joy indefinitely.

So, whether it’s a dream holiday, a reunion gig, or the chance to see a legend live, make sure you have room in your plan to say yes while you can.

That way, you won’t look back in anger because you’ll know you explored all the options – you might instead feel glad that you were there.

If you’d like to know more about cashflow modelling and how it can help you plan your future – and present – speak to us today.