Getting 'Personal' in Financial Planning

Before the final tally of your December expenses become history, how much over your average monthly budget do you think you spent to fashion a better lifestyle and holiday season?
[a] 50% [b] 40% [c] 25% [d] 15% [e] 5%

If retail sales trends are any indication forty percent would not be a surprise to some consumers. Of course, averages are not very personal so your spending could be less. I hope so given that financial pundits see a 50% chance of recession in 2008. Given that possibility, things could get a lot more personal.

Retails sales typically drop 20% in January and February as consumers catch up to their financial reality. Household budgets get really strained when the credit card statements arrive with their seemingly short due dates. Those electronics, appliances, and fitness machines sure cost a lot of money. Was it worth the wait in all those long, slow check out lines?

Consumers, however, are a hardy lot having survived all manner of recession and set backs for decades. Nothing has slowed their trips to the mall other than the usual traffic jams. But could next year be the one that breaks the cycle?

Few economists have ever predicted accurately when we might stop or at least curtail our irrational exuberance. By my count today, there's a few more willing to take the risk as the year ends and suggest we have run out of wiggle room on all our credit cards and home equity loans.

How about you? Does this approximate your situation? Or have you been more prudent with your spending opting for a balanced budget?

Whatever your approach, it is important to acknowledge that our spending is the common denominator linking today with the future; we spend our income during our working life, and we spend our savings during retirement.

But if you don't get your spending right today, there are no savings to put away for retirement. Tragically, this is the situation for many.

So here is my New Year's resolution; to help those of you at risk to eliminate or minimize the possibility of that happening and get you on the path to a better lifestyle right now.

I'm confident that when you are Spending On Purpose 2008 will be a year of personal progress toward realizing your dreams and aspirations.

Happy New Year