Fear of Being a Bag Lady

Don’t let the fear of being a bag lady keep you from enjoying life. Over the years I have counseled many women both as part of a couple and as a single woman. Whether it was as part of couple where they had decided to retire or a single Mom trying to pay off a debt or college tuition, in either case what they needed was “permission” to spend money. When I say permission, I mean they needed to know that it was okay to spend money.

Far too often women get hung up on the idea that they might be a bag lady later in life and therefore can’t spend a dime today. This is where I would say financial planning is sometimes more of an art than a science. Yes, you can build a plan and run cash flows into the future but these types of plans don’t take into consideration the emotional component. Does it give you the peace of mind to know you paid off the car loan rather than have the extra $20,000 to invest? I would say that for many, spending $20,000 today for what gives you peace of mind won’t materially change your financial future but it will definitely have an impact on your current attitude. Get the house painted if it means you have “house pride” and love when you pull up to your home every day and see the beautiful paint job. Pay the college semester of tuition for your son or daughter if it means when you see your child you have immense pride in helping them achieve their degree with less debt. Go on the vacation with your spouse while you can enjoy the travel experience.

Of course, this all is predicated on having a sound financial plan where you have been saving and investing appropriately over the years. But don’t be a prisoner to the notion that you will run out of money if you have been financially prudent all along. Money is for living and enjoying so if you can afford it, then spend the money you worked hard for.