philosophical
financial goals don’t have to be sensible
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The other day after work I caught up with a friend of mine over coffee. The conversation turned to my blog - although I write anonymously, a number of people “in real life” are aware that I do have a personal finance blog. In an effort to show her that it wasn’t just geeky spreadsheet stuff I mentioned the carnival of financial goals.
That sparked her interest. She’s quite a bit older than me but like me she’s single and child-free. Three or four years ago she cashed in all her investments and put down a large deposit on a cottage in a small village. Apparently she’s been working hard all this time to pay off her mortgage early, and will be able to do so by the summer. But after that, she said she didn’t really have any financial goals.
Now, in my book, paying off your mortgage early is quite a big financial goal. I was a little concerned that she might have done this at the expense of her retirement investments, but no, it transpired that she has a final salary pension, plus an additional private pension, she’ll probably be pretty well off when she stops working. I was informed that retirement savings should be my financial goal - such a sensible person 
.
In the end, she decided that her next immediate financial goal was to set aside money to spend on herself. To landscape her back garden, travel overseas, take classes,… In short, to experience life and all that it has to offer.
It just goes to show that if you get the basics sorted out, your financial goals can be all about spending money on the things that will make you happy.
Similar Posts:
- overpaying the mortgage or investing for retirement part 1
- do you think about retirement?
- planning for retirement: pensions vs buy to let part 2
Tags: Discussion
13 comments for “financial goals don’t have to be sensible”
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“It just goes to show that if you get the basics sorted out, your financial goals can be all about spending money on the things that will make you happy.”
That’s why we have money.
You’re right, it is why we have money - I sometimes think that we forget this though (and in the meantime fritter it away on things that don’t really make us happy).
I’m afraid I quite disagree that financial goals don’t have to be sensible. Financial goals should always be carefully considered and should at a MINIMUM be sensible! I think what you’re trying to say is that they don’t have to be about increasing finances.
Some of my current financial goals include retirement savings, further education, travel to London, and a new digital camera. I consider them to all be very sensible, and while I do heavily lean toward the common retirement goal of financial independence, that’s certainly not my only or even my most important goal.
Good choice. You can’t take the money with you, and if you don’t have anyone to give it to, there’s nothing wrong with enjoying what you make.
Good for her.
I really enjoyed this reminder. Its so easy to get caught up in the “only do things if they are productive” mindset, which happens to me all the time. Living a life worth living is the ultimate goal I think, but its easy to forget when you are trying to pay off hundreds of thousands of dollars on a mortgage, or deciding whether or not to apply for that air miles credit card ;).
thanks Plonkee - Good way to start the work week.
Great point. As long as your needs are covered, investing in YOU is a great investment. Life is meant to be lived!
I firmly believe that there isn’t a one size fits all strategy for personal finance. You have to do what’s right for your situation.
There are basic principles, to be sure, but there is always room to personalize your own strategies.
Nice article.
Ron
Yes, I think investing in yourself is fun and can be a great use of money. After all, you can’t take it with you.
@Deamiter:
I mean that they can be about spending money on yourself for no special reason. I think once you’ve got the sensible things covered, then that’s ok.
I agree, what are you making it for, except to have more to spend at some point of your life, whether it is now or in your retirement?
I penny pinch in some areas so I can plunk down more on something fun!
Lisa
I love your last sentence! Yes, that’s what it’s all about: getting the basics sorted out so that the rest can be spent on what’s really important.
Great ending…that just made me happy. I hope to be in that position at some point.
I’ve had some good experiences with saving up for things (trip to Europe, violin) and it’s a really nice payoff when you get it! 
@Mrs. Micah:
It is nice. Although since I’m rubbish at saving up for things, and have to hide the money away so I don’t “accidentally” spend it, I don’t really get the benefit of the *good saver* feeling. Still, at least this way I get the nice stuff.