Focusing on Financial Wellness

By Nicole Young on July 13, 2022

Henry David Thoreau once said, “Wealth is the ability to fully experience life.” You’ll notice he didn’t reference the size of one’s house, the most expensive car, or the number of Twitter followers. He understood the value of “experience”, which is not driven by cost, but by the people you surround yourself with. Yet, we continue to see anxiety and depression rise across all genders, races, ages, and ethnicities – driven by financial stress. In fact, the American Psychology Association did a survey in February 2022, of which they discovered that money was the major source of stress for 65% of participants.

As we dive deeper into this topic, we see that people with financial stress tend to have the following qualities:

Impulsive shopping (i.e. Amazon)
Grocery shopping without a list
Spending all the money that comes in
Pays bank overdraft fees or credit card interest
Easily influenced to shop based on TV/Social Media ads.

If you find yourself in one of these categories, here are 5 ways to shift your focus towards “experience” and live with less financial stress:

Before you spend money, decide if the purchase is a need or a want. Ensure your needs are met before entertaining any wants, then prioritize to ensure the most important items rise to the top.
Shop with a grocery list. We’ve noticed many that use grocery apps (i.e. Instacart) tend to spend less on average as there is less temptation to impulse buy as you walk down the aisle. Professional shoppers also suggest grocery shopping after you’ve eaten for the same reason.
Cancel unused membership or multiple media subscriptions. It’s not “just $9.99 / month”, it’s $9.99 x 10 subscriptions, or nearly $1,200 / year.
Cut down on dining out – sorry Hillgrove Tap (Western Springs) and fourteensixteen (LaGrange). According to the US Bureau of Labor Statistics, the average American spent $3,459 eating out in 2018. And in our area, where the food is top notch, it can easily be double or triple that number.
NEGOTIATE – we are a capitalistic society driven by competition. Call your cable company, phone and credit card companies and ask if you can get a new package or waive the annual fee to save some money.

When your back hurts, you go to the doctor. When your car won’t start, you take it to the mechanic. If 65% of people are living with anxiety over money¹, why not take charge of the situation? When your finances are not in order, if affects multiple areas of your life, from job performance to health to family relationships. If managing money creates anxiety in your life, it will affect you both physically and mentally. It may be easier said than done, but we would all benefit by increasing our financial wellness.

Article By: Randy Porzel, CFP®, RICP®: Randy is a Partner and Lead Advisor at Private Vista LLC. He began his financial planning career as an intern and worked his way up through every job at the firm. Randy finds joy in taking clients through Private Vista’s planning process, using tools that answer questions and clear uncertainty so that clients can look forward to their idea of an enriched life. In his free time, Randy enjoys serving on the boards for the Chicago Lighthouse for the Blind and The Darien Lions Club, whose mission is to serve those in the community with visual impairments.

Source: American Psychology Association

Private Vista, LLC is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC (member FINRA and SIPC). Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC.

This is not an offer to buy or sell securities, nor should anything contained herein be construed as a recommendation or advice of any kind. Consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. No investment process is free of risk, and there is no guarantee that any investment process or investment opportunities will be profitable or suitable for all investors. Past performance is neither indicative nor a guarantee of future results. You cannot invest directly in an index.

These materials were created for informational purposes only; the opinions and positions stated are those of the author(s) and are not necessarily the official opinion or position of Hightower Advisors, LLC or its affiliates (“Hightower”). Any examples used are for illustrative purposes only and based on generic assumptions. All data or other information referenced is from sources believed to be reliable but not independently verified. Information provided is as of the date referenced and is subject to change without notice. Hightower assumes no liability for any action made or taken in reliance on or relating in any way to this information. Hightower makes no representations or warranties, express or implied, as to the accuracy or completeness of the information, for statements or errors or omissions, or results obtained from the use of this information. References to any person, organization, or the inclusion of external hyperlinks does not constitute endorsement (or guarantee of accuracy or safety) by Hightower of any such person, organization or linked website or the information, products or services contained therein.

Click here for definitions of and disclosures specific to commonly used terms.