WorkWithSharonBanner

Don’t be a Donkey with your Money!

Hello my savvy LGBT investors! We see it all of the time. Commercials for the sleekest sports car, the latest and greatest gadget, or whatever the newest “must have” item is.

Most people don’t even realize that they fall victim to corporate marketing and it may lead them down a bad financial path.
Advertising to purchase goods, whether it’s car, clothes, jewelry, or whatever, is a way to make you think that you can’t live without their product. That your hard earned money, your time, your effort is worthy for exchanging for their item.
Think about it. Let’s say you make $40/hr. Luxury car maker guy wants you to buy their car for $40,000. You have to give up 1000 hours of your life for that vehicle. Actually, you give up more than that, once your figure in gas, insurance, maintenance, etc. Is that car worth giving up a half of a year of work? Really? It will still get door dings. It will still depreciate. Most people I know get over the excitement of a new car within the first year that they own it. It’s just a car.

The same thing can be said for other high priced items. A Rolex watch costs from 5k up to 300k. I hate to tell Rolex owners this, but time is the same everywhere whether you own a Rolex or a Timex. Who made it a luxury brand? Rolex did with their expensive advertising! They convinced the consumer that they really need to have a Rolex watch to be somebody important! It’s just a watch.
You exchange some of your time on this planet for money
I understand that people get enjoyment from owning certain things. I certainly want people to enjoy their lives. All I am saying is that you are exchanging a certain amount of time on this planet for working to make money. Are the things you are buying worth the time you are exchanging? Think about it the next time you decide to make a big ticket purchase.

As a financial advisor, I frequently see people who “wear their money”.
They drive the fancy car, have the expensive clothes, jewelry, toys, and have nothing saved. They get 5 or 10 years out from retirement and start to panic. They didn’t have their priorities right.

Don’t be a Donkey!
I like donkeys. They are loveable and rather cute. I wanted to use a word that begins with an “A”, but this is a family blog. Just don’t be a dumb “donkey” when it comes to your money.
I’m not saying that you shouldn’t treat yourself to nice things from time to time.

But make sure when you purchase these things, they don’t detract from your most important financial goal – taking care of your future.
Save for financial freedom first. If you have extra money AFTER all of those things are set aside for, then look at how you spend your discretionary income. Don’t spend your money on expensive doo dads first, then figure out what you have left for retirement, college for the kids, etc.

What do you think of buying luxury brand items?

Sharon L. Herman AAMS, ADPA is the CEO of Silver Key Wealth Management, and affiliated with LPL Financial. www.silverkeywealth.com Sharon.herman@silverkeywealth.com

The opinions expressed in this material do not necessarily reflect the views of LPL Financial.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Silver Key Wealth Management, a registered investment advisor. Silver Key Wealth Management is a separate entity from LPL financial.
Ms. Herman may only discuss and/or conduct transact securities business with residents of FL, MI, GA, NJ, VA, TX. www.finra.org www.sipc.org

No Comments

    Leave a reply