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Writer's pictureNate Baim, MBA, CFP®

Tackling Impulsive Spending


Enjoy this week's edition of the Planner's Beta


Beta (n) - climber's jargon that designates information about a climb This digest's purpose is to share observations, ideas, and treasures found this week which you may also find insightful. Sharing does not mean it's an endorsement. I am endorsing the pursuit of knowledge and exploration.



You Can Learn to Manage Your Impulsive Purchases

How can you prevent your next impulse purchase? Understanding why we make the spending choices we make is the first step in ensuring that our purchases are thoughtful. While having a budget in place is always a good idea, understanding your unique approach to making spending decisions can help create a safeguard for emotional spending.


In this article from Money, Dr. Brad Klontz, CFP(R) and financial psychologist shares some of the reasons we have a trigger finger in consumer shopping. Most importantly, he also shares ways we can set up our own defense against impulse buying.

Consider these tips from Dr. Klontz:

  • Look for external influences on your shopping decisions. Is something or someone leading you to browse, search for, or spend money on something you typically wouldn’t consider buying?

  • Make a list of your impulse spending “go-to’s.” Create a process for those purchases, such as scheduling when you buy them (e.g., once a month instead of on impulse).

  • Focus on meaningful, long-term goals when faced with a short-term decision. Connecting the short-term decision to buy something as a hurdle to achieving something meaningful (for example, being less stressed about finances) can strengthen your ability to forego quick purchases in the future.

  • Keep lists of desired purchases, and review them during a less emotional time. This wait-and-see approach can keep your wallet safe.


This Month's Financial Planning Item - Reviewing How to Maximize Your Savings

The K Shape Recovery led some household's savings rates to skyrocket. The personal savings rate is the highest it has been since the 1970s. Now, families may be struggling to optimize their savings strategies because of the assets they accrued.


You may have extra cash on hand, and you want to save for the future. But you may need help identifying all of the different account types to consider for your savings. This 17 point checklist provides a structured outline to guide your thoughts regarding available and appropriate saving strategies. It covers accounts across the following categories:

  • Foundational Savings

  • Healthcare Savings

  • Retirement Savings

  • Employer-provided Benefits

  • Business Owner Savings

  • Accounts To Help Future Generations

  • Tax-Deferred Insurance Options

  • Other Account Considerations



If you need independent advice on managing income and savings, please review the services I offer and place an introductory appointment on my calendar.


If you are a current Pursuit Planning and Investments client, securely upload any documents needing review to PreciseFP. I am happy to help proofread any resumes, conduct mock interviews, or support you with any career decisions you face. We can discuss this in our next scheduled check-in meeting, or feel free to place an appointment on my calendar.



Quote of the Week

"No written law has ever been more binding than unwritten custom supported by popular opinion." - Carrie Chapman Catt

 

Have something on your mind? Schedule a free call with Nate.

 

Pursuit Planning and Investments, LLC is an Investment Adviser registered with the State of Oregon. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions. Past results do not guarantee future results. Please contact us at 971-803-5948 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions.  Additionally, we recommend you compare any account reports from PPI with the account statements from your Custodian.  Please notify us if you do not receive statements from your Custodian on at least a quarterly basis.  Our current disclosure brochure, Form ADV Part 2, is available for your review upon request, and on our website, www.planyourpursuit.com. This disclosure brochure, or a summary of material changes made, is also provided to our clients on an annual basis.


Investing involves risk. Past results do not guarantee future returns. This content should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice. The performance of an index is not representative of any particular investment, as you cannot invest directly in an index.


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