I am sharing these key takeaways from Michael Finke’s research with you so that you can ponder what your own happy retirement looks like.

Social Connection = The Secret Ingredient

• Spousal relationship quality is the strongest predictor of life satisfaction.
  • A poor-quality marriage lowers life satisfaction below that of being unmarried.
  • A very close marriage substantially boosts satisfaction
• Friends also significantly increase life satisfaction—the number and frequency of contact with friends both matter.
• Other family (beyond spouse and children) has a smaller but still positive effect.
• Children: Neither the number of children nor contact with them significantly impacts retirees’ life satisfaction. (So, moving across the country to be closer to your kids might not deliver the joy you are expecting.)

Tip:  Create a retirement budget that allows for leisure spending; going out to dinner with friends, traveling to connect with friends, and doing hobbies that provide an opportunity to socialize.\

You Do Not Need to be Rich to be Happy

• Retirees don’t need to be rich to be happy – they need to feel financially secure
• Anxiety about money reduces life satisfaction
• High financial anxiety = 23% lower odds of life satisfaction

Tip:  Structure your money and investments so that you feel comfortable spending in retirement (guaranteed income, lower risk investments, etc.)
Learn how to estimate and structure your retirement spending realistically.

Health is Wealth

• Poor health is the number one cause of retirement dissatisfaction.
• Retirees in excellent health score dramatically higher on life satisfaction than those in poor health.

Tip: Invest in wellness, prevention, and active living for yourself. Make it part of your financial plan!

The Risk of Cognitive Decline is Real

• Cognitive decline affects financial decision-making.
• Financial intelligence peaks in your 50s and declines by your 70s
• Confidence does not decline with age

Tip:  Simplify your finances, appoint a durable power of attorney early, and create a withdrawal strategy that doesn’t rely on frequent decision-making.
Read about transitioning from saver to confident retirement spender.

 Consider Community Living

• Retirees in community-based housing report 25%-30% higher life satisfaction
• We think that our home is a safe haven for aging, but aging in place can increase isolation.
  • Friends move away.
  • Driving becomes difficult
  • Home becomes harder to manage
• Retirees living alone after age 82 report lower life satisfaction

Tip: Make sure that your retirement living plan will allow you to continue to connect with people as you age.

While financial security is important, research shows that money alone isn’t what makes retirement truly satisfying.  Did the science behind a happy retirement change the way you are thinking about your retirement plan?

Resources:

“Spending, Relationship Quality, and Life Satisfaction in Retirement” (Finke, Ho & Huston, 2018)

3 Signs You’ll Be Happy In Retirement

Podcast: The Long View; EP23 Michael Finke: Here’s What Makes Retirees Happy

The post The Science Behind a Happy Retirement appeared first on MainStreet Financial Planning.

Here’s how to build resilience into your retirement plan, no matter what the markets are doing.

1. Strengthen Your Foundation First
   A resilient retirement starts with the basics:

• Emergency Savings: Keep 6–12 months of expenses in a high-yield savings or money market account.
• Debt: Do your best to minimize high-interest debt before retiring.
• Spending Plan: Know what your retirement life costs and be sure to account for inflation.

2. Don’t Rely on Just One- or Two-Income Sources
   Having multiple streams of income helps smooth things out when markets get choppy. Think beyond just Social Security and a 401(k):

• Pension or annuity income
• Taxable brokerage account
• Rental income
• Part-time work or consulting

A healthy mix of stable and growth-oriented income gives you more flexibility when times get tough.

3. Match Investments to Your Time Horizon
   Even in retirement, you’ll likely need your money to last 20–30 years. That means growth still matters. Use a bucket strategy:

• Bucket 1 (Years 1–3): Cash and short-term bonds for immediate needs
• Bucket 2 (Years 4–7): Income-producing investments like dividend stocks or intermediate-term bonds
• Bucket 3 (Years 8+): Stocks or real estate funds for long-term growth

This gives you time to wait out downturns instead of selling your long-term investments at a loss.

4. Avoid Emotional Decisions
   Market declines are tough—but reacting emotionally can do more harm than good.

• Use your cash and bonds to cover expenses during rough markets.
• Stay invested and rebalance when needed.
• Keep in mind: recoveries usually follow downturns.

5. Make Thoughtful Adjustments When Needed
   You don’t need to overhaul your plan every time markets dip. Small adjustments can go a long way:

• Pause or reduce discretionary spending
• Postpone major purchases
• Revisit your withdrawal strategy—aim to keep it under 4% annually

6. Lean on a Fiduciary Advisor
   Having someone who knows your full picture and isn’t emotionally tied to the market can be invaluable. A fiduciary financial planner helps you:

• Stress-test your plan for different market scenarios
• Make tax-efficient choices
• Stay focused on your long-term goals

Final Thought
You can’t predict the market—but you can plan for the unknown. A resilient retirement plan keeps you grounded, even when the headlines feel uncertain. If you’re unsure whether your plan is built for that kind of strength, let’s talk. A retirement check-in could make all the difference.

The post Retirement Resilience: How to Stay Steady in an Unsteady Market appeared first on MainStreet Financial Planning.

For these clients, it’s not just the delivery of a solid, financial plan.  We also have a conversation around who is going to be in “Circle of Support”—a mix of people who could offer emotional, practical, and professional support during this next chapter of life.

If you’re facing retirement without family, considering a similar move—or just wondering how to strengthen your connections in retirement—here are five steps to help you build a support network without relying on family.

1. Reflect on Your Needs and Strengths

Begin by thinking about the kind of support you want or need in this next stage of life:

• Emotional: Companionship, encouragement, or a trusted friend to talk to.
• Practical: Help with errands, home maintenance, or rides to appointments.
• Professional: Advisors who can support your financial, health, or legal decisions.

Also, consider what you bring to the table. Do you have time to help others? A skill to share? Support networks are most rewarding when they’re mutual.

2. Reconnect and Strengthen Relationships

You may already have people in your life who could be part of your circle—you just need to nurture the connection.

• Reconnect with old co-workers, friends, neighbors you’ve lost touch with.
• Strengthen your current friendships by scheduling regular calls, planning outings, or sharing experiences together.

Even small steps—like inviting someone for coffee—can lead to meaningful connections over time.

3. Expand Your Network with Intention

When you’re ready to meet new people, seek out opportunities based on shared interests:

• Hobbies: Join local clubs or online groups focused on something you enjoy.  If you love hiking, join a local hiking group.  If you love theater, volunteer to paint scenes at the local theater.  Join a book club, craft or gardening club to meet your kind of people.
• Community resources: Check out offerings at your local senior center or community center. Many offer fitness classes, art workshops, or lifelong learning courses.
• Support groups: If you’re facing a specific challenge—like caregiving, chronic illness, or grief—there are groups filled with people who understand.
• Online tools: Sites like Meetup.com, NextDoor or Facebook Groups can help you connect with like-minded people in your area.

And remember—if you don’t find something that fits, create your own.

4. Communicate Clearly and Set Boundaries

Building a support system means inviting people into your life—but also setting healthy expectations.

• Be honest about what kind of help you’re seeking.
• Understand that not everyone will have the capacity to meet those needs—and that’s okay.
• Clarify your own limits, too, so you don’t become overwhelmed by trying to be everything to everyone.

Healthy boundaries make relationships stronger and more sustainable.

5. Make It Mutual

Support isn’t just about what you receive—offering your time, presence, or skills helps relationships flourish. Whether it’s helping a friend with tech, offering to walk a neighbor’s dog, or simply listening when someone’s had a hard day, reciprocity creates a sense of community and purpose.

You’re Not Alone

Retirement without family can feel uncertain—but it doesn’t have to be lonely. By reflecting on your needs, reaching out to others, and being open to new experiences, you can build your own Circle of Support.

Start by reaching out to one person today. You may be surprised by how ready others are to connect—and how fulfilling this next chapter can truly be.

Other Helpful Resources:

Creating Your Solo Aging Plan

Navigating Solo Network and Resources Library

Solo Aging and the Importance of Building a Local Support Network 

How to Build Your MicroBoard (And Be the Chair of Your Board!)

13 Ways to Live a Dynamic Life 

With the increasing awareness of Solo Aging, help with planning can also be found through many organizations around the country, including senior centers, area agencies on aging, and county offices of aging.

Online search suggestions:  Search “solo aging”, “childfree”

The post Facing Retirement Without Family: How to Build Your Circle of Support appeared first on MainStreet Financial Planning.

Here are five practical tactics to help retirees weather economic uncertainty:

1. Take a Break from the News
   Constantly consuming news and social media can lead to unnecessary panic. It’s easy to make hasty decisions driven by fear when you’re constantly exposed to negative headlines. Consider a news detox to regain perspective and avoid emotional decision-making that could harm your finances.
2. Ensure Bucket #1 is Fully Funded
   Have enough cash to cover at least three years of living expenses, plus an emergency fund (3-6 months of expenses). This ensures you won’t need to sell investments when markets are down, protecting your long-term financial plan and providing peace of mind during turbulent times.
3. Reevaluate Your Asset Allocation
   If watching your investment portfolio fluctuate causes anxiety, your current allocation might be too aggressive. Consider shifting towards a more conservative approach. You can reduce your stock exposure and increase investments in fixed income options, such as cash or bonds, within tax-advantaged accounts (like a 401(k), IRA, or Roth IRA). This adjustment lowers risk without triggering tax consequences, giving you more stability in uncertain markets.
4. Reassess Your Budget
   Take a close look at your spending. Are there areas where you can scale back or eliminate expenses? Reducing discretionary spending can help you avoid withdrawing from investments that are currently down. The less you dip into your portfolio during market downturns, the better your chances of recovering when the markets rebound.
5. Consider Going to Cash—Only as a Last Resort
   If market fluctuations are affecting your mental and emotional well-being, it may be tempting to move all your assets to cash. However, this strategy should only be used if absolutely necessary. Keep in mind, cashing out can have tax implications, and it could prevent you from participating in a market recovery, potentially limiting your long-term growth.

By implementing these strategies, retirees can better navigate the ups and downs of the market, protect their assets, and maintain a sense of control over their financial future.

The post 5 Tactics for Retirees to Navigate Economic Uncertainty appeared first on MainStreet Financial Planning.

While this fire was nothing compared to the devastating fires in the Los Angeles area, it was an eye-opening experience. I want to share some key lessons learned to help you review your own insurance coverage and emergency preparedness.

Key Takeaways & Insurance Considerations

1. Ensure Your Home Can Alert You in an Emergency

• Many neighbors close to the fire didn’t wake up when we knocked on their doors.
• Having a working doorbell is crucial. If you have a two-story home, make sure you can hear it from upstairs.
• Regularly check that your fire alarms are functioning properly and have one in each room, hallways and maybe even in the garage.
• Keep a fire extinguisher in an easily accessible location and ensure everyone in your household knows how to use it.

2. Never Use an Extension Cord for Appliances

• Fire investigators determined the fire started because a mini fridge was plugged into an extension cord and then into a 46-year-old garage outlet.
• Always plug appliances directly into a wall outlet—extension cords are not designed to handle high loads for extended periods.

3. Check Your Insurance Coverage for Garage Contents

• If you store valuable items in your garage, ensure you are including their value in the personal property section of your homeowner’s, condo, or renters’ policy.
• The HOA’s insurance typically won’t cover your personal belongings, even in accidental fires.

4. Know How Your Auto Insurance Covers Fire Damage

• If your car is damaged in a fire, repair or replacement will generally fall under your personal auto policy’s comprehensive coverage. This type of coverage kicks in when there is damage to your car (vs. collision insurance when you are in an accident)
• Most policies have a deductible so make sure this fits with how much you are afford.

5. Understand Who Pays for Garage Repairs

• The HOA will cover rebuilding the garage structure, but there is a deductible that the HOA has to pay.
• If you’re found responsible for the fire, that deductible will likely be passed on to you.
• Make sure you have Loss Assessment coverage in your condo policy to cover this type of claim.

6. Keep a Home Inventory for Easier Claims

• Take photos or videos of your belongings and store them in a secure digital location. This makes it easier to file claims and prove what you owned.
• Read this article to check out home inventory apps as an easy way to document your belongings. The app Encircle is a favorite among our staff.

7. Make an Emergency Evacuation Plan

• Decide what you would grab if you had 5 minutes, 15 minutes, or more time to evacuate.
• If you live on the second floor, ensure you have a safe exit plan.
• Exchange phone numbers with your neighbors for quick communication.

8. Have a Safety Plan for Pets

• If you have pets, make sure you have an evacuation plan that includes their needs.
• Know where your pet carrier is stored and keep it easily accessible.

Review Your Insurance Coverage

Given the recent fires, now is a great time to review your homeowners or renters’ insurance policy to ensure you have sufficient coverage.

• If you own a condo, check out my article: Five Things to Know When Buying Condo Insurance.
• If you own a home, you may want to read: Rising Inflation Could Mean Your Home Is Underinsured.
• If you rent, make sure your renters’ insurance covers:
  • Personal property replacement
  • Liability for accidental damages
  • Additional Living Expenses (aka ALE) for temporary hotel or rental stays if your home becomes uninhabitable

If you have any questions about your coverage, schedule a meeting with your financial advisor or insurance agent.  Now is the time to prepare —before an emergency happens.

The post Lessons from a Garage Fire: Reviewing Your Insurance Coverage appeared first on MainStreet Financial Planning.

1. Project Budget: My first order of business was to contact contractors, cabinet makers, and designers to help me understand how much it would cost to get the kitchen I envisioned.  Once I had a good idea of the project cost, it was time to determine if we could pay for it.  I was willing to postpone the project if we had not saved enough.  With interest rates on the higher side, I did not want to add interest to the project costs.
2. Cash: Once we started considering a kitchen remodel, we began funneling all discretionary funds into our high-yield savings account.  My husband also paused his employee stock purchase plan contributions so we could direct those dollars to high-yield savings too.
3. Financing: We could finance our new appliances with 0% financing for 12 months.  Be sure to review the details of these offers carefully. If you carry a balance beyond the 12-month promotional period, the interest rates can be extremely high! I figured out how much I would have to pay monthly so that we would pay off the appliances in 11 months.  Now we are using monthly cash flow to pay for the appliances!
4. Cash Flow: We immediately tightened our discretionary spending due to the home project, cutting back on unnecessary shopping and going out. I set up an outdoor kitchen area so we could continue to eat most meals at home, it was fun like backyard camping!  These efforts meant that we were able to put project purchases on the credit cards and pay them off each month.
5. Investments: We purchased some iBonds a few years ago when interest rates were much more attractive, so we cashed them in to pay for some of the projects.  In addition, my husband had company stock with long-term capital gains, so we sold some shares at a favorable tax rate to increase our cash for the project.

There always seem to be some home projects that need to get done …it comes alongside home ownership!  That is why I highly recommend planning for home projects and saving up as much as you can.  Do your research before starting so you can comfortably pay for the project.  Be flexible, you should expect cost overruns and perhaps waiting to build up savings is the best strategy.  If you need help creating a plan for a home project we can help!

My kitchen remodel was 99.9% done by Christmas (one kitchen cabinet door had to be re-ordered several times and, as of this writing, is still not installed).  Here are my before and after pictures.

The post How a CFP® Finances a Home Project appeared first on MainStreet Financial Planning.

• The SSA has announced that benefit checks will rise 2.5% in 2025. Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. The fastest way to find out your new benefit amount is to access your personal mySocial Security account to view the COLA notice online.
• The maximum amount of earnings subject to Social Security tax (taxable maximum) will increase to $176,100 from $168,600.
• The individual tax brackets for ordinary income have been adjusted by inflation. On average, tax parameters that are adjusted for inflation will increase about 2.80%.

• The standard deduction (used instead of itemized deductions) will increase by $400 for single filers and $800 for joint filers. Seniors over age 65 may claim an additional standard deduction of 2,000 for single filers and $1,600 for joint filers.

• The personal exemption for 2025 remains at $0 (eliminating the personal exemption was part of the Tax Cuts and Jobs Act of 2017 (TCJA))
• Long-term capital gains rates and brackets:

• The maximum child tax credit is still $2,000 per qualifying child and was not adjusted for inflation. The refundable portion of the child tax credit is adjusted for inflation and will remain $1,700 for 2025.
• The retirement plan contribution limit for employees who participate in a 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $23,500 (an increase of $500 from 2024) $31,000 for those aged 50 and over (which includes an unchanged $7,500 catch up contribution limit)
• The limit on annual contributions to an IRA remains at $7,000 and the IRA catch-up limit remains at $1,000.
• The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $150,000 and $165,000 for singles and heads of households. For married couples filing jointly, the income phase-out range is between $236,000-$246,000.
• Eligible IRA owners age 70 ½ and older can make up to $105k in tax-free charitable donations during 2024 through qualified charitable donations (QCDs).  Qualified charitable distributions are made directly to the eligible charity from a traditional IRA, inherited IRA, inactive Simplified Employee Pension (SEP) plan and inactive Savings Incentive Match Plan for Employees (SIMPLE) IRAs. 2025 amounts should become available later this year.
• The annual maximum Health Savings Account (HSA) contribution limits for 2025 will be $4,300 for self-only coverage and $8,550 for family coverage. The catch-up contribution for savers age 55 and older remains unchanged at $1,000. A high deductible health plan (HDHP) must have a deductible of at least $1,650 for singles and $3,300 for family.
• In 2025, eligible employees may contribute up to $3,300 to a FSA (Flexible Spending Account).
• Estates of decedents who die during 2025 have a basic exclusion amount of $13,990,000.
• The annual exclusion for gifts increases to $19,000 for the calendar year 2025, up from $18,000 from 2024.
• The standard mileage rates for 2024 is $0.67 per mile. 2025 rates should become available later this year.

More Information

• If you would like to read more about the 2025 changes from the IRS here is the IRS Publication and summary at the Tax Foundation website.
• For help estimating your taxes or withholding:
• • IRS Tax Withholding Estimator

The post 2025 Tax Brackets, Social Security Benefits Increase, and Other Inflation Adjustments appeared first on MainStreet Financial Planning.

To avoid potential taxes and penalties with a 529 plan rollover to a Roth IRA make sure to understand the requirements.

• Account age: The 529 plan must have been open for at least 15 years.
• Rollover amount: The rollover amount must be from contributions made to the 529 account at least five years prior to the transfer date.
• Annual contribution limit: The rollover amount cannot exceed the annual Roth IRA contribution limit for the year. For 2024, the annual Roth IRA contribution limit is $7,000, or $8,000 for individuals aged 50 and older (based on age of the beneficiary).
• Lifetime rollover limit: The total amount that can be rolled over from a 529 plan to a Roth IRA over a beneficiary’s lifetime is $35,000.
• Direct transfer: The rollover must be a direct trustee-to-trustee transfer.
• Beneficiary name: The Roth IRA must be established in the name of the 529 account’s designated beneficiary.
• Earned income:  The beneficiary needs to have earned income equal to at least the rollover amount.
• Not all states recognize this new rule so you may owe state taxes and penalties.  Read more

As you wrap up the year, perhaps you want to explore taking advantage of this new rule.  You have until the tax filing deadline April 15, 2025, to complete the 529-to-Roth IRA rollover for the 2024 tax year.

Also, remember to consider your other options for unused/leftover 529 plan funds:

• Change the beneficiary of the 529 plan to another qualifying family member and use it for qualified education expenses.
• Create an education legacy for grandchildren.
• Save it for graduate school, professional programs, pursuit of a different field of study, resuming college later.
• If the beneficiary has special needs, you can rollover the 529 plan into an ABLE account which has a much broader definition of qualified expenses.
• Use up to the $10,000 lifetime limit to pay student loans.
• If the 529 plan beneficiary gets a scholarship, you can withdraw up to the scholarship amount penalty-free.

529 plans are a great education savings vehicle.  Your contributions can grow tax-free and if you use the money for qualified education expenses there are no taxes on distributions. College is a big expense, and the best strategy is to have savings to meet your family’s goal of paying for college.  So have no fear…save to a 529 plan and if things do not work out as planned…you have options for your unused

The post Year-end Planning: Unused/Leftover funds in a 529 Plan appeared first on MainStreet Financial Planning.

The MainStreet Financial Planning Discussion Club

When:  Thursday, October 10th at 3pm Eastern; 12pm Pacific

~30-45 minutes

Recorded and able to retrieve for one week

How: Zoom Meeting

Free for current clients, $10 for guests

Email us for the recording!

College Funding Planning

Hosted by: Vida Jatuils, CFP® &  Anna Sergunina, CFP®

Is your child heading to college in the next 0-5 years? Now is the time to start planning! Join Vida Jatulis, CFP®, and Anna Sergunina, CFP®, as they guide you through key strategies for funding your child’s education and developing a comprehensive timeline of actions to take.

We’ll cover crucial steps, deadlines, and discussions you should have over the next few years while your child is still in high school. Key topics include saving strategies, estimating costs, tax planning, and financial aid. Plus, we’ll help you map out the important conversations to have with your teen about college money.

Things we will discuss:

1. Is it too late to start saving?
2. Estimating the cost of college and creating a cash flow plan.
3. How to have the college money talk with your high schooler.
4. Tax planning strategies to reduce college expenses.
5. Is it worth spending money on test prep or AP tests?
6. Understanding aid, loans, and how to tap into investments.

Don’t miss this opportunity to build a solid college funding plan and stay on track with key financial decisions over the next 0-5 years!

College Funding Plan

The post Chalk Talk: College Funding Planning appeared first on MainStreet Financial Planning.

I got home from my weekly grocery shopping trip and my daughter asks me in that “all knowing teenager” look “Mom, why did you buy 2 cantaloupes when it’s just us?” At the time, it seemed like a great deal; It was summer, and I know how much she loves this fruit.  The store was having a sale, “buy one get a second one half off”, so I was happy to scoop up a second one to have for the week. But later, as I looked at the second cantaloupe rotting in the refrigerator, I realized I had just spent more than necessary to “save” money. I went to the store to buy 1 fruit and ended up with 2.  That’s spaving: spending under the illusion of saving.

Spaving is a blend of the words “spending” and “saving.” It’s that sneaky feeling of satisfaction you get when you believe you’re getting a bargain. The problem is, this “bargain” often leads to spending more than you intended, which can derail your financial goals.

Why is Spaving Bad?

Spaving might not seem like a big deal at first, but it has a way of adding up and can ultimately throw off your financial progress. Here’s why it’s harmful:

• You Spend More Than Planned: Have you ever checked your bank statement and wondered how you managed to spend so much? Spaving tricks you into thinking you’re making smart choices when, in reality, you’re overspending.
• Budget Overruns: I once had a client who proudly showed me how much she “saved” during a massive sale. But when we looked at her budget, it turned out she had gone way over her monthly spending limit. Those little savings didn’t matter anymore because she had to dip into her emergency fund.
• Stress and Anxiety: It’s one thing to score a deal, but it’s another to face the anxiety of a maxed-out credit card bill at the end of the month. The temporary joy of saving a few dollars isn’t worth the long-term stress of financial instability.
• Opportunity Cost: Every dollar spent on things you don’t really need is a dollar that could have gone toward something meaningful. Imagine how much closer you’d be to that dream vacation or how much more secure your emergency fund could be if you weren’t constantly spaving.

Examples of Spaving

Let’s dive into some everyday examples—chances are, you’ve experienced at least one of these:

• Spending above a certain amount to get a “free” gift: A local restaurant runs a special where if you spend $50, you get a free appetizer. To qualify, you decide to order extra drinks and a dessert, pushing your bill well above $50. While you get the appetizer, you end up spending more than you typically would for a meal just to receive it.
• Spending enough to qualify for free shipping: This is the classic trap. You add extra items to avoid a $5 shipping fee and end up spending an additional $30 on things you didn’t need.
• Buy one, get a second item half off: You might think you’re getting a bargain, but if you didn’t actually need two items, you’re still spending more than you planned.
• Buying extra items to use a coupon or discount code: That “20% off when you spend $100” code sounds like a great deal—until you realize you only needed $40 worth of items.
• Subscribing to a service to qualify for a discount: Have you ever signed up for a subscription box just to get that first-month discount, only to forget about it until months later when you noticed the recurring charges?
• Shopping during big sale events like Black Friday: The excitement of “doorbuster deals” can make it hard to resist.
• Buying in bulk: Purchasing a large quantity of items you don’t need immediately just because there’s a discount. This can lead to spending more overall, especially if the items expire or go unused.

Ways to Be Smarter with Spending

So how can you avoid falling into the spaving trap? Here are some practical strategies that have worked for me and my clients:

• Set Clear Financial Goals: Before you shop, remind yourself of your financial goals. Are you saving for a vacation? A new home? Having clear goals will help you resist unnecessary purchases.
• Create a Budget: Make a budget and stick to it. I’ve found that categorizing expenses as “needs” and “wants” helps prevent impulse buys.
• Ask Yourself the Right Questions: Before making a purchase, ask, “Would I buy this if it weren’t on sale?” or “Do I truly need this?” It’s amazing how often the answer is “no.”
• Track Your Spending: One of my clients started tracking her spending and discovered she was spending over $200 a month on “sale” items. Once she saw the numbers, she was able to cut back.
• Avoid Impulse Buying: Give yourself a 24-48 hour period to decide whether a purchase is necessary. That “must-have” item might not seem so crucial after some time.
• Create a Shopping List: Write down what you need before you go shopping and stick to it. I’ve found that this simple step dramatically reduces impulse purchases.
• Avoid Sales Alerts: Unsubscribe from retail newsletters and disable push notifications. This will help you avoid the temptation of buying things just because they’re on sale.

Conclusion

Spaving is one of those habits that’s easy to fall into but tough to break. By staying aware of your spending patterns and asking yourself the right questions, you can avoid the pitfalls of spaving and stay on track with your financial goals. Remember, true savings come from spending money on the things that genuinely add value to your life—not from chasing every deal that comes your way.

The post Avoiding ‘Spaving’ and Stay On Track with Your Financial Goals appeared first on MainStreet Financial Planning.