Tackling Your Finances Before Super Bowl Sunday
NFL Super Bowl Sunday, one of the largest annual sporting events in America, allows fans to purchase tickets to the game for the bargain price of thousands of dollars! Many will make the investment and travel to attend this once-in-a-lifetime money-making event. The masses tailgate, others plan parties at home – a night on the town, etc. “You only live once” has a peculiar way of making individuals purchase things they cannot afford, want things they don’t need, while suddenly realizing they may have bit off more than they can chew financially. As the world gears up to watch the Kansas City Chiefs play the San Francisco 49ers, have you budgeted accordingly? What will you spend on food, beverage – everything – and do you have a plan not just for this weekend, but tackling expenses in the future? As we count down this historic red versus red matchup, let’s find a way to keep you out of the red.
Poor spending habits equals debt and debt equals trouble. If you cannot afford it, high interest rate obligations like credit cards, never-ending student loans, and impulse buys like event tickets add up. Special occasions, holidays and game days are times of indulgence, good and bad company, and can be a strain on finances. We prepare and consume weeks’ worth of calories in one sitting because both emotionally and financially, occasions like the Super Bowl, birthdays, and Christmas have costs. Have you analyzed how much you spend for these occasions? Take a close look at your bank statement and credit card next month. Like retirement planning, spending should take careful consideration in ensuring one is financially equipped for emergencies and the future, because in the game of life, there are few safeties. Who is your quarterback? Financial planning in developing a budget to manage spending can lead to discretionary income in living a financially fit life this new year. Rather than that impulse or big purchase, reconsider options to generate more income. Perhaps downsize that home, get a roommate, or limit dining out. A debt-reducing savings plan does not have to be all work no play. The trick is to wrap up expenses and save.
Prioritize & Save
One of the key tenets of a healthy financial future is saving. Impulse spending can curb any investor’s success. Even if it’s just a little at a time, save as much as possible. It’s about habit and if you can resolve to put away 5% to 10% of your salary before paying bills, any savings is better than a turnover to a debt collector. Savings are a perfect option to avert debt.
As an investment professional, I provide guidance to clients. The kicker is that clients are going to spend as they wish. It’s not my place (even as an investment professional) to tell an individual how to spend their money or that their priorities are wrong, but to make your budget work and your financial goals and future a reality, you may need some guidance. Sometimes it takes a professional to convince an individual to halt dining out every day; buying that new car every few years; or limit where and if you take that vacation. Financial fitness is just as important as physical fitness because one of the biggest stressors in life is your finances. And once that stress takes over, it trickles into relationships, weight-gain, etc., where spending can lead to overindulgence and/or instant gratification, leading to debt. Setting boundaries and considering needs over wants is crucial to planning for retirement. Seek out a good quarterback, aka advisor, because good quarterbacks will not let you fumble. They assist you in winning. Go Chiefs!
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The preceding commentary is (1) the opinion of Chris Osmond and not necessarily the opinion of PCIA, (2) is for informational purposes only, and (3) should not be construed or acted upon as individualized investment advice. Past performance is no guarantee of future results. Seek advice of a tax professional.
Advisory services offered through Prime Capital Investment Advisors, LLC. (“PCIA”), a federally registered investment adviser. PCIA: 6201 College Blvd., 7th Floor, Overland Park, KS 66211. PCIA doing business as Prime Capital Wealth Management (“PCWM”) and Qualified Plan Advisors (“QPA”).