Question: My car is embarrassing. The paint is chipping, part of my bumper is literally wired on and it blows more smoke than a train. When I talk to my husband about getting a new car, he says we can't afford one. But that's ridiculous…we make plenty of money. He just hates to spend it. What do I do?

Answer: The difference between affording and hoarding is usually fear. And fear usually thrives in the absence of facts.

A budget is just a plan to spend money. Everybody realizes that in a budget it is important that you not spend too much. But did you also realize that it's important that you not spend too little?

If the owner of a factory only focuses on what that factory can produce today, he'll never spend any money on maintenance, because maintenance is a cost, and it takes away from today's productivity. This is the definition of short-sightedness.

Soon, his factory and machinery will begin to deteriorate to the point of inoperability. In an effort to maximize productivity, the factory owner will actually lose productivity.

It's reminiscent of the story Jesus told about a guy who was so rich that he decided to tear down his old barns and build new, bigger ones to store his growing pile of stuff. His plan was to take it easy, or as he said, "eat, drink and be merry." The only problem was he heard a Voice that night Who said (in effect), "Game over. Time's up. Turn in your chips."

I can only imagine the depth of regret I would have looking back and realizing that my barns full of stuff, which I had spent on no worthwhile person or worthy purpose, would now be someone else's property.

Think about this: all of your money will be spent by somebody some day.

We exit this life with exactly what we entered it with. The only way to store wealth is to store it in people or purposes that will outlast us.

Your husband sounds like he's afraid of something.

Maybe he doesn't know what. I am only getting your side of the story, but as you tell it, it sounds like he is saving money for some unknown, future purpose. And it sounds like he's afraid he won't have enough saved by the time the future gets here.

A financial planner may be able to help your husband identify what he's fearing, then address the fear. Once the fear is dealt with (which could take a while), he may be willing to discuss a balanced budget – one with both saving and spending.

The purpose of a budget, drafted in the context of an overall financial plan, is to identify and balance what needs to be spent now (lifestyle) versus what needs to be spent later (savings). Most people who don't have a plan err on the side of spending too much now. This is the consumer society in which we live. It is the spirit of the age.

But there are still a few souls who naturally err on the side of "later" spending, a.k.a., saving. Yes, they save too much. We call these troubled souls hoarders.

Interestingly enough, both over-spenders and hoarders need the same thing.

A plan.


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