When we talk about financial planning, we often focus on the big financial questions. Ones like: ‘How much does the client need to save for retirement?’, or: ‘Are they investing efficiently?’ – and ‘Are they on track for their long-term goals?’.
But there’s a different kind of question that I believe deserves more airtime: ‘How much should this client spend in the next 18 months. And on what?’ Yes, to encourage them to actually spend on what matters most to them.
It’s deceptively simple – and surprisingly powerful.
When I spoke with financial planner Dan Haylett on The Money:Mindshift podcast, he said: ‘We’ve never been taught the skill of spending’.
Financial advisers are relied on to coach clients on how to save, protect and invest their money. But how often do you offer structured conversations about how to spend well?
The missing link in many plans
Without guidance on intentional spending, clients can often fall into two patterns:
- Oversaving and underliving: they defer joy and are reluctant to use the wealth they’ve built, potentially leading to regret in later life.
- Overspending impulsively: they spend without connection to values, leading to short-term satisfaction, but long-term regret or financial strain.
Both behaviours could erode wellbeing, even if the spreadsheet looks fine.
The role of advising a short-term spending goal
I believe that adding an 18-month spending goal into your financial planning framework could help bridge the gap between money and meaning. It could:
- Ground conversations in what life looks like now, and not just in 30 years.
- Create a sense of permission to enjoy wealth meaningfully.
- Reduce anxiety around spending, especially in or near retirement.
- Build trust – because you’re not just managing numbers, you’re supporting life decisions. Allowing them to collect memories and experiences, not just cash.
What it looks like in practice
It’s important to remember this isn’t traditional budgeting. It’s more personal.
You might ask your client:
- What do you want to experience in the next 18 months?
- Is there a trip, a gift, a renovation or project you’ve been putting off?
- How could we fund that in a way that feels safe and aligned?
Once you’ve named the goal, quantify it. Plan for it. And most importantly, validate it. Show the client that spending with intention is part of financial strength, not a break from it.
Helping clients develop the skill of spending
As Dan noted in our podcast, spending well is not something many people have been taught. And as a result of that underdeveloped skill, people find it really hard to spend in retirement. They don’t spend the savings they’ve accrued.
Ultimately the issue is that self-worth is attached to net-worth. So, spending money, in that mindset, depletes self-worth.
That’s where you come in. Not just as a technical expert, but as a behavioural coach.
Here are a few ways to help clients reframe their approach:
- Anchor spending in values: ask them: ‘What does this spending say about the life you want to live?’
- Separate impulse from intention: help clients distinguish between emotional, reactive spending and considered choices.
- Normalise enjoyment: give clients permission to enjoy the wealth they’ve created, especially if that’s a new or difficult shift.
- Create rhythm and structure: suggest annual reviews where clients can reflect on how their spending aligned with their goals.
Financial wellbeing includes today
It’s easy for financial advice to lean heavily on deferral: save now, enjoy later. But real wellbeing comes from knowing how to balance both. Yes, we’ve got to take care of our future selves. But we also live in the present – so why don’t we start taking care of our present selves?
The role of advisers is evolving. Clients don’t just want to know if they’re on track, they want to know if they’re living well on the way.
That’s why learning how to spend money and building a short-term spending plan isn’t just a nice addition. It’s a vital step toward deeper, more human-centred advice.