Older generations may be behind a little in their ability to text, wirelessly connect their electronics, bounce around at a music concert but they excel beyond belief in being financially studious. Generations that lived through the Great Depression grew up being cautious. They used every piece of food, saved every random item, fixed broken things instead of replaced them, hemmed and darned, wore hand-me-down clothes and shoes even when uncomfortable. They bought quality and kept it for a lifetime, not just until the trends changed and they wanted something different. They fixed their stuff when it broke instead of replacing it. The generations that grew up with parents that lived through the great depression carried forward with them these same lessons.
Those times were so challenging that they conserved for the rest of their lives – never certain that hard times wouldn’t fall on them again. There were no credit cards. If you could not afford it, you did not buy it. These are the investors who are well-prepared for retirement with sufficient savings and paid-off mortgages and low financial needs. They sometimes, now, need to be encouraged to spend a little extra because they have been cautious all their lives that they feel uncomfortable spending, even though they may have more money than time left.
The funny thing is that those who have money don’t tend to spend much money and that is exactly why they have money. However, we seem to be in a “More” world today. Everyone thinks they need more and more and more. Older generations teach us that “More” conservation may lead to “More” financial safety which may lead to “More” happiness than perhaps “More” stuff does.
Challenge: Find 3 ways that you can live more like our Older Generations and try it out for 3 months.
By Cammie Humke, Investment Adviser at The Humke Group, Inc
Located at 555 S. Randall Rd in St. Charles, IL, phone 630-584-7343
The Humke Group, Inc is an independent firm offering securities through Summit Brokerage Services, Inc., Member FINRA/SIPC. Advisory Services offered through Summit Financial Group Inc., a Registered Investment Adviser. Opinions expressed are that of the author and are not endorsed by the named broker/dealer. All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy.