Jason and Kristin wanted to buy a house. Now that they have two children, their “starter house” was too small, with only one bedroom and 1 bathroom. They each had a list of “must-haves” and had been looking at houses online for months. They planned to sell their current home and use that money for their down payment on a new house.
They argued vehemently about what to pay and what to eliminate from their wish lists. The concern they had was that they had quite different ideas about the amount to spend on the new place.
Jason had a large number in mind and, in general, was more relaxed when it came to expenditures. He was an optimist and was confident that they would be able to afford the price he wanted to spend.
Kristin was much more conservative about spending, in general, and thought Jason was being unrealistic about the money. She believed that his job was too dependent on the economy to be relied upon to produce the money they would need. She was a teacher and knew exactly how much money she was going to make each year and knew it was a modest, stable amount.
They had a written Vision Statement that they had worked on at the beginning of their work with me, and they decided to consult that document to see if it would provide them with guidance.
They reviewed what they wanted their lives to be like. Their vision was that they would travel with their children, provide them with private education or public education with enrichment by the parents. They had agreed in their Vision
Statement that they would give 10 % of their net income to charity, 20% to investments into a retirement fund and 10% to savings for emergencies and to fund an education fund for the children. They had included that if either parent wanted to go to graduate school, they would fund it.
After being reminded about the items in the Vision, they settled on a housing price that was about half way between Jason’s and Kristin’s figures, and they were satisfied.
They were aligned with their Vision and not solely influenced by wishes or by fears of spending.