This is one of the best articles on spending that everyone including those on an HOA board need to watch for. It's always easier to spend another person's, a business's, or HOA money rather than your own. To convince us that something is a good deal, motivate one to do something or justifying why something was done or needs to be done is commonly done by using psychology. Causing us to use the portion of our brain that controls emotions. Emotion based spending results in illogical and irresponsible spending resulting in financial troubles.
Yet at the same time it doesn't mean hoarding money either. Repair and replace reserve items as scheduled and keep funding slightly above 100%. If there is still an excess of dues then refund them or lower them for next year. There is nothing that says when items have used up their useful lives that it has to be replaced exactly like it was. When something needs replacing upgrade it if you have the money, but doing it early or letting them expire will cause financial shortfalls. If you live in an HOA watch out for some of the behavioral things in the article. If your just human watch for them in yourself, because we are all guilty of several of them.
Dumbest Things You Do With Your Money - CBS MoneyWatch.com
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