Memorial Day has passed, and the summer has officially kicked off. In the summer we see the highest level of discretionary spending. In the summer months, the highest discretionary spending categories for Americans are travel and vacations, recreation and entertainment, dining out, transportation, apparel, and home supplies / improvements. Here is some time-tested advice on making sure that the hard-earned money being spent this summer is enjoyed and not wasted.
Make your purchases conscientiously. As the old adage goes “measure twice, cut once”, so should the adage of “buy it only if it is undoubtedly worthwhile”. Whether it is an experience (vacation or trip), thing (new bag or shoes) or consumable (expensive wine or cigars), one should only consider the purchases if it will be “worthwhile” via the pleasure received from the item. The golden formula is “enjoyment received > intrinsic cost”.
Do not keep us with the Joneses. As another old adage “comparison is the thief of joy” goes, it is important to separate yourself from impulse-driven purchases that exist only from a sense of comparison or competition (even with yourself). Buying a bigger sailboat than your neighbor because you can’t stand them but do not know how to sail, or worse yet – do not enjoy sailing is, no surprise – a bad financial (and personal) decision.
The key is enjoyment. That concept is not universal, and not all purchases are enjoyed equally. There are people who are happier with a diecast replica of a car than the actual car owner, having to deal with the upkeep. The goal (and our reminder) is to make your purchase decisions with intent, even if outside the norms set by your peers. Prioritizing the things that give you the highest level of pleasure compared to cost is always worth it. Whether it is an expensive trip, a new vehicle, a renovation on your home or an investment of high personal value to you, know that we at Lighthouse Financial Advisors are here to help you meet your goals and to live a financially free life.
As the season heats up, give yourself permission to spend with purpose. When your choices are aligned with what truly matters to you—not trends or comparisons—you’re not just making purchases, you’re building a life that feels good to live. That’s what real value looks like.
Sources:
https://www.bls.gov/opub/reports/consumer-expenditures/2022/home.htm
https://www.bankrate.com/credit-cards/news/summer-travel-continues-to-set-records
https://kpmg.com/us/en/media/news/kpmg-consumer-pulse-survey-summer-2024.html