Did you know that financial planning isn’t all about saving? It’s about what you’re saving for — and I’d be willing to guess that you’re saving money today that you plan to spend at some point in the future. That’s right! Most of us aren’t saving for saving’s sake. We’re saving toward something or, in other words, saving with intentionality.

Most of us are saving for financial independence of some sort. But what about those who haven’t gotten to the big retirement milestone yet? Well, they’re probably saving for retirement, too, sure — but also for things in the near future or the coming years and decades. And their saving probably has to do with their goals.

Goals-Based Planning Is Planning to Spend

Here at FPFoCo, we start with your goals. Yes, we get to know a bit about you in your intro call before we take a deep dive into your biggest financial hopes and aspirations. But we really begin the financial planning process by learning what you want to get out of it. Since goals change as we grow and our plans evolve, we then refresh your financial plan on an annual basis to adapt.

Why? Because reaching your financial planning goals requires saving and spending! Therefore, by setting goals, you’re planning to spend. You’re stating your aspirations and intentionally building them into your saving and spending plan, aka your financial plan. 

It’s important to have an accoutabilibuddy here. That’s because you might get comfortable with having a certain amount of money in a specific account or seeing it grow. When it comes time to spend it, it can feel like someone is stealing your security blanket. By working with a financial planner, you have the peace of mind to know that you’ll be ok. (And we help you in celebrating having reached those goals, too!) 

That can help you find the balance you need to have a successful overall financial life — while enjoying the milestones you reach along the way. Even the big milestone of retirement isn’t the endpoint. It’s also about what you want to do once you’ve reached financial independence!

Doing the Actual Spending

Of course, it can be difficult to actually do the spending — no matter where you’re at in life and how much you’ve planned on it. It can be especially difficult, however, after an entire career of saving. That’s because seeing your intentionally saved dollars dwindle as no additional dollars enter your savings and investment accounts isn’t always easy to stomach. I find that some of our clients need a nudge here and there when it comes to spending. 

On the flip side, some spend too much too quickly and require a reality check when it comes to enjoying their retirement — and their lives. This is true for folks who find themselves in credit card debt by living outside of their means. To avoid running out of money, going into debt, or having to drastically shift a cash-flow plan later on, a spending check-in is necessary. This helps both us and our clients understand why they’re spending what they are and what they need to change to increase their probability of financial success. 

So it goes both ways. The important thing to remember is that, when you make your intentional plan to spend, you need to stick with the plan! Sure, things change over time, hence the annual plan refresh. Together, we can see what works and work through necessary changes.

Looking for more on this topic? Check out the latest episode of our podcast, Money & Taxes from Bb to XYZ! It breaks down intentionality throughout the generations, from baby boomers to generations X, Y, and Z. The episode shares its title with this blog, “Intentionality: Plan to Spend,” and you can check it out wherever you get your favorite podcasts.

Plus, you can read Jason’s recent blog on his family’s intentional spending.

No matter what you’re saving for, don’t let saving for saving’s sake get in the way and keep you from achieving your goals. Our team here at FPFoCo has the tools you need to help you get to where you want to go. While we can’t save and reach your goals for you, we can show you how. And we can hold you accountable for doing the saving — and then strike your accomplishment from your RightCapital at your next financial plan refresh. Cheers to your success!