5 strategies to help under spenders get over the hump of tapping their investments.
My husband and I sold some appreciated stock in 2022, resulting in a much bigger-than-usual bill on tax day this year and several tight months for our household budget after that.
Why the tight budget? While we had moved the proceeds from the stock sale to the money market fund in our taxable brokerage account, and therefore the funds to pay the associated taxes were there for the taking, psychology had kicked in. Specifically, I viewed the funds in our brokerage account—and any of our accounts, for that matter—as verboten for spending. Funds flow in a single direction, and that’s into our savings. Taking money out feels terrible. I hate it.
Written By: Christine Benz
Published By: www.morningstar.com