Expect the unexpected
If 2020 has taught us anything, it’s always be ready for the unexpected.
As a Floridian, I am always ready for Hurricane Season. My family stocks up on essentials, especially bottled water and we make sure our trees are trimmed before the season starts.
As pilots, we train for the "unexpected" so that when something goes wrong in our aircraft, we are ready and prepared.
It's imperative that we are prepared for the unexpected in other areas of our lives - for the downturn that may be caused by factors well beyond our control.
In 2020, many Americans stayed home and curbed spending as they remained uncertain about their financial futures, about their jobs. In fact, many pilots lost their careers when airlines shut down all together.
This year, however, is proving to paint a different picture and more and more people are vaccinated and feel more comfortable about getting out and more comfortable spending money.
Companies like Target and the parent company of Outback Steakhouse are reporting all-time record earnings. Nearly half of consumers want to live large and get back to pre-Covid-19 spending levels, according to a recent poll by Charles Schwab.
Nearly a quarter of the consumers say they plan on making up for lost time and expect to splurge more than they were before Covid-19 slammed the economic brakes.
Schwab's 2021 Modern Wealth Survey showed what Americans are dreaming about the most:
- Travel
- Socializing
- Extended Vacations
- Dining out at upscale restaurants
- Throwing a party for family and friends.
Keeping perspective remains paramount to financial freedom. Here are a few tips to spend without blowing your goals away:
- Decide what matters. What's the purpose of the spending?
- Budget to include periodic splurges so you can take the guilt out of spending.
- Keep splurging money apart from daily needs.
After 2020, we all need a breather. Just make sure you aren't going into debt to take that trip.
