".....Then What Was It All For?"
I had a brief but impactful conversation with a client today. He and his wife are considering making a questionable financial decision. They have been intentional about living a debt-free life, and as a result, they live a truly remarkable life. Sacrifice after sacrifice, they've chosen the road less traveled. They could easily have a bigger house, better vehicles, fancier trips, and an overall bougier lifestyle. However, they elected to stay disciplined.
As luck would have it, a piece of land recently went on sale. Not just any land, but a property adjacent to their family's land. This parcel is a bucket list piece of real estate for them. The kind of property they envision someday building a house and eventually passing down to their children.
There's a catch. They can't afford to wave their magic wand and write a check for the whole property. Ideally, they could in due time, but the sellers of this particular property aren't going to wait around for them. It's now or likely never. Knowing this, they have two options: 1) pass on the opportunity, or b) use debt to secure the transaction.
As you probably know, I'm not a fan of debt. I've been personally debt-free since 2016, and have no intention of going back. However, in my friend's situation, it actually makes sense. Given the rare opportunity, the fact they have so much margin in their financial life, and the overall economics of the transaction don't impair their family's life, it makes all the sense in the world.
However, he's conflicted. He doesn't love the idea of procuring debt for this. He goes back and forth about what the right decision is. On one hand, he thinks he needs to keep saving and avoid the debt. On the other hand, he may not get this type of opportunity again.
After bouncing back and forth while thinking out loud, he concludes with this: "If I don't pull the trigger on this, then what was it all for?" This single comment perfectly summed up the tension between meaning and money. Yes, he wants to make wise financial choices. He's done that! He's made so many sacrifices for his family's future. He and his wife have done tremendous work over the past five years. Everything they've done up to this moment has prepared them for such a moment.
His comment echoes so much truth. ".....then what was it all for?" If he's not willing to choose meaning now, all his past wise financial decisions were pointless. Staying out of debt, living below their means, and intentionally maintaining a lower-than-necessary lifestyle. In my opinion, each of these decisions, magnified over years, has brought them to this place where they can make this powerful decision without impairing their financial life. That's a gift! That's a blessing! That's the reward for their good work.
They should buy the land. Meaning over money. Always meaning over money.