A financial planner's advice for spending without guilt

In 2004, Lauren Williams, a two-sport Olympian and now certified financial planner, bought a home. Then she bought another in 2006. When the market crashed in 2007, both became worthless. She held on until 2017, sold short, and wrecked her credit. The guilt was crushing—not just because of the money, but because she was a "big time athlete" who was supposed to have it together. She hid the problem, even from her own financial advisor, and the secrecy made the guilt worse. On this episode of Life Kit, Williams and host Maryel Segarra walk through the psychology of financial guilt and the practical steps to move past it.

The real source of guilt: misalignment, not overspending

Williams argues that the feeling we call "financial guilt" is often actually misalignment. You spent money on something that didn't match your values, and that disconnect is what stings. The classic example: someone spends $6,000 on travel in a year and then tells themselves "I'm a bad person." Williams says to interrupt that thought. Is it true? Is it definitely true? Who would you be without it? The answer is usually that travel to see family is a value, not a vice. The guilt comes from the story you tell yourself about the spending, not from the spending itself.