My dad dedicated most of his life to working two jobs, including running a bar in New York. Now retired and in his late 70s, he is going on vacation to Italy with my brother’s family.
The Real Reason Why i told my Dad to spend More Money
Generally, he dislikes traveling, especially long flights. While discussing the logistics of the trip, I offered him some surprising financial advice: fly first-class.
Although our country faces a spending problem, evident from the trillion dollars of credit card debt, many retirees like my dad face a different issue.
After decades of saving, investing, and working hard, spending down assets in retirement can be challenging. Transitioning from a saver to a spender isn’t easy, but here are three reasons why I encouraged my dad to spend more on this trip:
New Experiences
My dad has never flown first-class, and if you can afford new experiences, especially in your 70s, it’s worth it. Whether it’s an upgraded plane ticket, an African safari, swimming with dolphins, or any other bucket list item, these experiences are invaluable.
Inheritances
After decades of living frugally to ensure a stable financial retirement, it’s probable that you’ll need to adjust your spending habits during retirement, possibly even surpassing your previous means.
As the adage goes, “You can’t take it with you,” and projections suggest that Millennials and Generation X will collectively inherit $70 trillion from Baby Boomers over the next two decades. Personally, I’d prefer my dad to indulge in a first-class flight now rather than waiting for me to spend the inheritance later.
Time
Having the ability to pay for convenience is indeed a luxury. If you have the means, why not invest in it? For instance, if you dislike household chores like cleaning or lawn mowing and have the financial capacity to outsource these tasks, then go ahead.
Being intentional with your spending is crucial, especially before retirement, but it becomes even more significant during retirement when time becomes more limited. In the case of my dad, flying first-class won’t necessarily save him time, but it can certainly enhance comfort during the eight-hour flight. Every hour counts when there are fewer left.
Ultimately, spending money with purpose is a key aspect of achieving financial equilibrium. However, transitioning from being a saver to becoming a spender during retirement isn’t a simple process. So, will my dad heed my advice? Perhaps not immediately, but I hope our discussion will prompt him to embrace the enjoyment of his hard-earned money while he still can.
