Our spending habits are shaped by our attitudes about our upbringing, our values ​​and morals, the life we ​​lead and the security it holds, and our expectations for the future. Some of us belong to a generation that grew up in deprivation and poverty and has come acquainted with many estate much later in adulthood. We are compulsive savers. We constantly think about the unknown tomorrow and hide wealth for future contingencies, depriving ourselves of the pleasures of today. And then we get old, and stare at our reserves and wonder how we’ll spend. We are not used to that bold decision. So how do we navigate that stage in our lives, my reader asked. So here I make a list, as I consider his question.
First, identify what matters to you and ask if you’ve allocated it the money it deserves. Many people immediately think of travel as one of their interests to move forward into retirement. For some people, meeting friends and relatives as often as possible may be important. These days it is hard to miss elderly uncles and aunts taking the trouble to attend every wedding or function in the family. If travel interests you, spend on tickets, reservations, accommodation, etc. to make sure it’s comfortable. Be prepared to allocate money to activities that interest you.
Second, if you have a hobby, you may not be serious about it unless you are willing to dedicate the time, energy, and resources to pursuing it. If music is your passion, and you think you should learn it formally, enroll in classes and pursue it as a student serious. If photography gives you pleasure, invest in a good camera and lens, and do what it takes to take it seriously. If you think there’s a new activity you’ll do in retirement, create a reasonable budget to spend on it, so you can enjoy it.
Third, if there are expenses that you have postponed for the rest of your life, and now you feel like you have money to spend, bring them back to the table. Buying books you love to read, indulge in dining out to experiment with different cuisines, attend exhibitions, shows and concerts that interest you, or treat yourself to items of clothing and jewelry. buys that you yourself rejected being saved days, can come back and be financed if you have the money.
Fourth, if there are expenses that will increase your comfort, consider allocating money to them. You may also want to invest in a comfortable reading chair, a back supporting sofa, a better quality bed or blanket or pillows, and small everyday items that add to your comfort. You may want to take a cab to travel instead of taking public transportation; Flying instead of taking the train; And so on. These seem like small things, but I know of many elderly friends who will continue to nip at their comfort with their frugal habit, even when it’s no longer needed.
Fifth, if you think you have more than you need, learn to give. There are many people who can use that money very meaningfully. If you have paid hospital bills, tuition fees, coaching class fees, or if you have bought some life saving medicines, equipment or even provided clothes, shoes and such simple things, you have Life would have changed. Support charities that work on causes close to your heart. If you can be generous with the people around you, your vegetable vendor, security guard, liftman, cook and sweeper, driver and others, support them. You have time to talk, mentor and get involved.
Bring a change in their life. Why do people struggle with mundane things as expenses? Isn’t it natural to do this? Isn’t saving a more difficult habit of farming? In personal FinanceWe always value living standards as an important influencer of our money habits. Ask a very young earner, he will find his earnings insufficient to meet his long list of needs. At that stage in life, there is not enough time, energy or money because there is a long list of things to do.
As one progresses to middle age, the major cost of tickets becomes less. There is no house or car to buy, nor does the house need new things, at least not as much as it was when it was founded. But there are other financial goals, such as education. If income rises as one moves towards retirement, many have acquired a regular habit of saving and building a retirement corpus for themselves by then. And then the children grow up and leave, and reach a state of comfort from where they can give money to their parents when they need it. Then we have elderly parents with money they don’t know what to do with, or they now find it difficult to acquire the habit of spending.
With age, it is not common in India to indulge in pleasures. At such a late stage of life, it is difficult to focus on oneself and one’s own interests, desires and comforts. There is also the fear of social reprimand, if one is seen as indulgent in age, one is expected to renounce worldly desires and lead a simple life. Many people are unable to make decisions because they are torn between their personal will and the social expectation in their mind.
It is possible to create a life of great simplicity while fully embracing consumption and frugality. One can invest the money in other noble works. But that choice needs to come from within and with desire. If one longs to heart too delayed and rejected indulgences, but forces oneself to put on a mask of frugality and sacrifice, it can only lead to resentment. It is better to think about how to spend than to live in a lie and go ahead and implement it.
(The author is chairperson of the Center for Investment Education and Learning.)