Enjoy the big week without being a big spender
This is quite the week in that we have both the Super Bowl today and Valentine’s Day in a matter of days. Today, it’s ok to have your eyes glued to the television, but on Valentine’s Day if you look at too much television you might have issues.
On game day it’s generally junk food, often celebrated with a group of friends. On Valentine’s Day, it’s gourmet food with your significant other. One is a violent team sport, while the other is a couples’ romance. Both days are special, but they’re polar opposites. From a financial perspective, however, both can be very costly if you don’t keep an eye on your spending.
It’s one thing to buy a few squares for the big game in the annual office pool. Or you can bet on almost every “proposition” imaginable, from which team wins the coin toss to which player makes the first catch. Like it or not, gambling has become part of our nation’s fabric. And it goes way beyond today’s game.
There are point spreads, over and under bets and parlays on almost every game in almost every college and professional sport. The terminology is almost as complex as the language used in the financial services industry.
Years ago if you wanted to do any kind of legal gambling it was a trip to Las Vegas. Today, if you have a mobile phone you can play blackjack or just about any casino game without leaving home.
Technology has brought the world of gambling to the convenience of wherever you happen to be. Nobody is forcing anyone to gamble, but the media advertisements make it look seem attractive.
I find it concerning that a few universities have sponsored casino promotions for sports betting. With the debate over student loans, do we really want to make it easy for students to gamble their borrowed tuition money? I don’t think so, and I don’t like the mixed message students are receiving.
Over my career I’ve given advice and guidance to clients whose families have been adversely impacted by gambling. How do you react if you’re comfortably retired and your son or daughter comes to you for financial help because they’re about to lose their home? You want to help, but what if you learn their financial troubles were caused by gambling losses? This is a real-life example of the kind of issues financial advisors face.
As for Valentine’s Day, it’s ok to splurge on your significant other on this special occasion. But be reasonable. Don’t buy jewelry that requires a down payment with installments or a bottle of wine that costs more than your monthly mortgage.
Based on my career, couples that are on the path to a successful retirement discuss their finances and understand their circumstances. Even if one spouse is more financially astute, major financial decisions should be discussed.
Some say that Valentine’s Day is a Hallmark holiday, but I think it’s nice that there’s a dedicated day for couples to share their appreciation for one another.
In today’s world it’s far too easy to fall into financial disarray. Financial issues are the cause of many relationships falling apart. That’s why it’s essential to think through your spending and to be appreciative and respectful of your loved ones.
Email your questions to kenmorris@lifetimeplanning.com. Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/ SIPC. Investment Advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Society for Lifetime Planning is not affiliated with Kestra IS or Kestra AS. https://kestrafinancial.com/ disclosures.