Of course, much of financial planning has to do with the future. But people’s goals can backfire if they’re neglected in the present, says Preston Cherry, certified financial planner and founder and president of Concurrent Financial Planning in Green Bay, Wisconsin.
“Starving your current self … could be daunting,” said Cherry, who is also a member of CNBC’s Council of Financial Advisors. It can lead you to abandon your plans altogether, she said.
There are certain things that are easier to do when you’re younger, Cherry said, “and some experiences may fit better now than later, providing greater comfort and less regret over time.”
But people shouldn’t have to choose between a good life now and a good life later, Cherry said.
Here are her tips for balancing the two.
1. ‘Wants are also needs’
The division between “wants” and “needs” is often too stark for people, Cherry said. “In context, wants are also needs.” It can help to think about how the two are related, she said.
For example, while saving money for when you get older is essential, it’s also something many people want to do, Cherry said. That is because the stress of not doing it makes it hard to enjoy the moment.
On the other hand, spending your money in a way that feels good now can make it more tolerable to practice financial discipline for the future, he said.
“Give yourself a little grace and permission to spend,” Cherry said.
2. ‘Be selective with the fun’
Hero Images Inc | digital vision | fake images
Cherry advises people to spend on things that bring them joy, but also “be selective about the fun.”
For one thing, you don’t want your discretionary purchases to interrupt your progress on important goals, he said. But you also don’t want to waste money on products or services that don’t really add happiness or meaning to your life, he said.
He encourages people to reflect on the expenses that seem really worthwhile to them.
“People can receive joy in all domains, [from] gifts to experiences, and one of these categories can bring more joy at one stage of life than another,” Cherry said. “I’m a champion of what brings joy to people, [and] I encourage people to do that if it’s healthy for them and within their ability.”
