Financial Comfort Zone
What you feel comfortable spending is very different that what you can afford. This is what we tell every client when we are in the consulting phase. I learned early in my career that we can all afford many things, but it’s about what we find value in and want to spend our hard earned money on.
Budget VS Financial Comfort Zone
I’ve always held the notion in my career that a budget is simply a list of priorities with a number attached to it, and I stand by that still. However, we have changed our language over the years to forgo the term budget and replace it with “Financial Comfort Zone”. Immediately the ice is broken and people are a little less on the defense when we discuss their financials. The reality is this - could I afford an iconic Hermes Birkin handbag (which by the way is on average a $20k-$30k purse)? Sure, if I save very well and put that goal in place, I could be strutting around with a one-of-a-kind luxury handbag. However, at this point in my life (mind you I say this point in my life, because if my circumstances or the bag’s value changes, you may just see me with one) I do not see value in spending my hard earned money on a Birkin. So this brings me back to my original statement that says its not about what you can afford, it’s about what you find value in.
Do you see how the language changes the perspective. A budget almost feels like a restriction. Sometimes it feels like the world may be sizing you up based upon how much money you can afford to spend. Whereas a financial comfort zone, limits the world to knowing anything about what you can or cannot afford and it simply puts a number out there, that your feel comfortable spending.
How to Stay in a Financial Comfort Zone
I’m note sure what it looks for those who don’t hire a planner, but those who do - many planners will start with understanding your wants, interests and needs. At Lorenda Howell Events, we do this in phase one: Research and Development. We learn a lot about you in this phase. What you like, you don’t like, what you love and ultimately what you hate. We want to know what makes your heart skip a beat and what gives you the butterflies. We do this so that we can plan every detail of your event with those things in mind including how to organize the categories within your financial comfort zone. We do this before we start looking at venues or vendors.
Flexibility + Cutting Numbers
There are two types of people when it comes to flexibility within the financial comfort zone that his been set. When numbers start to roll in there is Person-A that will say “we’ve already spent XX dollars, what is another X dollars to ensure we have what we want?” On the other hand Person-B is one who would say “we’ve already spent XX dollars, I’m not spending another dime, we have what we have”. If you’re like Person-B the best wat to cut is below:
Guest Count - I get it you already had a tough time narrowing down your guest list. However, the quickest, most convenient and best way to stay within your financial comfort zone is by cutting your guest list. Simple math - less people, less money.
Food Preferences - be strategic in what you serve your guests. Many people lean toward a buffet when they are looking to save or to feed a very large number of people. You’d be surprised that sometimes its more cost effective to go plated than it is to have buffet. This isn’t always the case but you should always check.
Invitation Suites - If you like the idea of a custom invitation suite but it seems to costly, some stationery designers offer something called a semi-custom suite. It’s a step down from starting from scratch but you still get to add some nice personalization that will aid in setting the tone for your guests’ experience.
Repurposed Decor - Some of our clients like to really do it up for ceremony and rightfully so, but others have a hard time spending thousands in the ceremony space when guests will only get to enjoy it for 30-60 minutes, that too is understandable. An easy way to meet in the middle and save is by repurposing as much decor as you can. Maybe you want aisle decor that is costing over $4k and you just can’t see the point in spending that much. If you consider it being repurposed and used as a portion of your reception centerpieces, I think that $4k+ becomes alot more reasonable.
These are just a few ways that we believe can help in keeping you in or near your financial comfort zone. Please feel free to email us with questions or any suggestions you have that helped in navigating your financial comfort zone.
