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“YOU CAN PAY ME NOW—or you can pay me later.” Years ago, that was the catch phrase, spoken by an auto mechanic working on a broken-down car, in ads for FRAM oil filters. The pitch: If you spend a modest sum on routine car maintenance, you’ll avoid far bigger bills down the road.
The same philosophy applies to retirement savings. There’s a constant tradeoff between now and later.
Faced with life’s challenges, we need to strike a balance. We need to balance our work with our home life. We need to balance risk with reward. We need to balance growth with income. And, yes, we need to balance saving with spending.
None of us knows how long we’ll live. It’s good to make plans and have goals. They act as the proverbial carrot, encouraging us to keep moving forward. But we also need to enjoy today.
Each one of us has our own ideas about what’s fun and what’s worth spending money on. We need to balance the things we must do with these things that we want to do. The musts provide us with the financial foundation that allows us to support ourselves and our family. The wants make our life worth living. We can pay now for our wants or we can pay later—assuming we live long enough to get the chance. The choice is up to us.
Many folks say they can’t wait to retire so they can do the things they’ve put off doing because of their careers, family commitments or lack of time. The benefit of this approach to retirement: It gives you something to look forward to. All your hard work will pay off when you’re sitting on that tropical beach sipping that umbrella drink. The downside: If your health deteriorates prior to retirement, you may never do all the exciting things you dreamed of.
I’m in the opposite situation. I’ve done all the things I wanted to do, and I did them while I was working. I visited all 50 states. I traveled the full length of Lincoln Highway, which was first conceived in 1912 and which runs from New York City to San Francisco. I traveled Route 66 from Santa Monica, California, to Chicago. I visited eight foreign countries and took four ocean cruises. I visited many national parks after buying a lifetime pass for $10 when I turned age 65. I took a motorcycle racing course at the Watkins Glen race course, took a go-kart racing course in California and drove a Ferrari around the Pocono race track in Pennsylvania. Such things may not be important to others, but they were important to me.
The upshot: I’m not facing some large expense for that vacation of a lifetime. I’m also not worrying about whether my knees or my health will hold up, so I can fulfill some big retirement dream.
On the other hand, I also don’t have anything major to look forward to. I’m not complaining. It’s better to have lived life as you chose than to have others decide for you, and it’s better to do at least some things you enjoy now, rather than leaving everything to be done at some uncertain future time. Still, I need to invent new goals and dreams. It’s a good challenge.
Thank you David,
I put needs before wants in the growth phase of life, I do think to the extreme. But, I now have a lot of excess cash and do 30 jumping jacks daily and more for health.
So, what now do I choose to do?? The regards to the finances is not a concern so, I’ve found a world cruise starting from England that has a Beatles theme. It lasts for 118 nights, but would I find it boring after the first two months?
I just may meet someone interesting, perhaps from another country and that could make it worthwhile!
I agree with the fundamental point that you shouldn’t put off everything you want to do until after you retire, but I also agree with Mr. Quinn that for some families, that’s easier said than done. My husband and I are still working and now have enough flexibility in our schedules and disposable income to travel, but we’re also dealing with family health challenges that make it unwise for us to plan to be away for too long. When our kids were still home and then going to college, we didn’t have the time or money to cross many things off the bucket list.
I’m not sure if you deserve congratulations or condolences David. You seem to have violated the balance proposition.
May I suggest you have a great deal to look forward to if you want it. Eight countries? We visited 45 most after retirement. A different cruise to a different part of the world is always possible.
The other factor missing is that before retirement for many the travel and adventures are not possible, time or spending wise. I know that was the case for us – four children, four colleges to pay for, etc.
Balance is good, a person could save for the future and never have it, but for many, maybe most there is little choice.
I will speak up for the non-travellers out there (and yes, we do exist). Some folks might be horrified to learn I’ve never left the North American continent. I’ve visited a total of three countries. I have yet to be bit by the travel bug. Count me as one of the people who thrives on having a quiet, close-to-home retirement.
I can’t say that I have any grandiose plans or goals for my near future. For now, spending my days writing, taking long walks and bicycle rides with my husband and playing with our dogs are the only things I need to feel content.
Hi Kristine! I do hope another HD article is in your future plans one day! Always enjoy and closely identify with your perspective and thinking on life. Sounds like you’re enjoying retirement!
Hi CJ.
I just finished a new HD article. I hope you’ll enjoy it. Retirement definitely suits me. I love having ‘me’ time!
Best,
Kristine
Sixty seconds ago, I finished editing a new piece from Kristine.
Well, this is a great response to see! Kristine, glad to see your comment post today. Please know that your soft-spoken wisdom (and your HD articles) have been missed by this reader. Hope you are well!
Thanks for your kind words! Yes, all is well and I am in the process of writing another article for HD. Something along the lines of “A Simple Quiet Life”. Stay tuned.
You’re right about the countries. The UN recognizes over 200, although a number are quite small. I had visited over 70 when I was grounded by rheumatoid arthritis, but there were still ones I wanted to see, not to mention ones I wanted to revisit. Vacation time in the US is so short, many people can’t travel much while they’re working.