A recent AARP conference
(ideas@50+ ) featured Arianna Huffington, president and editor-in-chief at The
Huffington Post. In her presentation “Thriving After 50,” she spoke about
retirement and the fact that people are not saving enough to “thrive” in their
future. According to the Employee Benefit Research Institute, about 36 percent
of American workers have less tan $1,000 in retirement savings. Sixty percent
have under $25,000 and 58 percent have debt problems.
There is little doubt
that lack of sufficient money constitutes a major stress and contributes to
bodily ills. Our attitudes toward
money undergird much of our lives, impacting our lifestyle and sense of well-being. Yet many of
us ignore the task of managing our finances, often with dire consequences.
Taking stock of your
money with an eye on your financial future is a good idea. Here are some
examples.
Do I think money:
1. is meant to spend
on myself? Some of us feel deprived and believe material possessions will erase
the suffering. For example, Mr. G. purchased multiples of shoes, sweaters, etc.
filling his apartment with stuff he could never use. Ultimately he had to declare bankruptcy.
2. can lift me out of
the doldrums? Often a depressed person attempts to lift his mood by buying something
new. Mr. B. realized the glitter of the new item quickly faded, and he wasn’t
dealing with the real problem, but covering it over, like painting a rotting
floor board.
3. is meant to spend
on my children, because I’m generous,
want the best for them? Mr. V. wanted to save his children from
accumulating college debt and paid
all their expenses. However, he neglected to save for himself and had to
postpone retirement.
4. is for others to handle?
Ms. W. knew in her “heart
and mind” that she shouldn’t go into business with her husband. But she did not listen to herself. When
the business failed, she had to ask her son to help. He took over her finances,
and she found herself in the humiliating situation of having to ask him for
money.
5. requires too much
discipline?
At age 70, Ms. Q. still expected someone
to bail her out as her mother did when she was a child. “Mom would open the
cash register in her beauty salon whenever I asked for money.”
6. doesn’t have to be
protected?
Mr. M. gave up his
health insurance, betting on the odds that he wouldn’t get sick. When he became
ill, his wife divorced him so she didn’t have to cover his medical bills.
7. is too frightening
a matter to face?
Mr. O. was often in a panic about his
finances because he was too frightened to figure out how much he really needed
to retire.
Once we recognize the
psychological snafus, we can appreciate that
the principles of
money management are relatively simple.
1. Purchase what you really
need.
2. Spend as little as
possible to get the most.
A woman doesn’t have to go beyond her
budget to find attractive clothes. Similar styles are sold in Macy’s and
Bergdorf’s.
3.Save as much as
possible. No one can predict if or when an emergency will arise, and most of us
want to have the option to retire.
4. Pay down debt as
soon as possible.
Conclusion: Taking
care of our money is an important aspect of taking care of ourselves--our
health and sense of well-being. Investing time and effort in managing our money
pays off in more ways than dollars.
P. S. Here is a haiku
that is relevant to money management:
To finally know
the plum, use the
whole heart too,
and your own nose.
Onitsura (1660-1738)
It inspired me to write
my own:
To counterbalance
the gross substance
of lucre
seek the plump rose
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