The older you get, the tougher it is to manage your finances if you weren’t a wizard in planning when you were younger. It’s one of the struggles a lot of people encounter and is an unfortunate part of life. A lot of this means more responsibility, and more work, at a time when there should be less work, and less responsibility.
Some Baby Boomers have worked their whole careers, 20, 30, 40 years, and feel like they have to keep working. Part of this is because of the people they support, the lifestyle they live, or the spending habits they have. It’s incredibly difficult to have to keep going and keep moving forward when all you want to do is hit the reset button.
Are you trying to handle too much?
It’s a conundrum people everywhere face. Do they go above and beyond to help or continuing helping someone by working more, and giving more? Or do they draw a line in the sand, and say no.
Everyone is different, and everyone has different values. As times have changed, and the world has evolved, so have the people in it. What we’re trying to say is, the new world, is much different than the old world. A lot of this has to do with technology and the way our culture has evolved over the last 100 years.
Baby Boomers were taught to get a job, go to work, and make money. Their parents put an emphasis on teaching them discipline. A lot of this meant knowing when the right time was to say yes, and the right time to say no. When to go out with friends, and when you couldn’t afford to.
Managing your finances has become much harder in general
Times have changed to where credit cards and unreasonable spending limits make it easier to lose control. The times when you could only afford to spend what you have has changed to I can only afford to spend what the bank will give me. I’ll worry about paying it back later.
A lot of that burden and responsibility of managing finances has shifted to the older generation. They are still supporting and paying for family members to maintain their lifestyle. That means they’re working harder and longer.
The financial burden for those who are older has greatly increased from what it once was. They have been tasked with helping people who are much younger who have poor spending habits or weak work ethics.
There is a point that we would like to highlight here
The best way to remove this financial burden or responsibility is by teaching others how to be independent. If you’re feeling financial stress because you’re taking care of younger family members, teach them how to manage their finances and stand on their own two feet. The more they know, the more they understand, and the more they’ll be willing to venture off and become successful on their own.
Mentoring can result in difficult conversations, some challenging times, and tough-love decisions. But those who are younger and struggling will eventually learn to figure it out themselves or be mentored by someone else.
When young people are taught to live independently and figure out how to do things for themselves it forces them to think, learn, execute and survive in the world.
Do your dependents and yourself a favor
A lot of Baby Boomers are afraid to teach their kids how to live on their own. They feel an obligation or a responsibility to provide for them and ensure they have the best in life. But ultimately, this will only hurt them and make them more dependent. When you delay in letting them experience the harsh realities of life they see the world as a fantasy that they don’t feel a need to be involved with.
There’s also a good amount of pressure and anxiety that comes with supporting others in addition to maintaining your own lifestyle. The challenges can be overwhelming unless you have unlimited amounts of money to spare.
I really can’t imagine the level of pressure and anxiety that comes with that. Having to provide, feed, clothe, and shelter a range of different people, and having to do it on a monthly basis, day in, and day out. It must feel like a huge mountain every month, and climbing it, only brings you back down to square one.
How we handle our money has an impact on future generations
It’s interesting to see how the way older people manage their finances will play into the given point of a cycle in the economy as well. A lot of people tend to forget and discount the level or effect the economy has on their income level and lifestyle. The amount of money people make varies and changes, as the economy does. Often times, so do their lifestyles.
Making quickly decided upgrades to your lifestyle that adds hard to manage costs and expenses is something you want to avoid. As people get older they tend to become more conservative and take their time making important financial decisions.
That’s because a bad decision can ultimately be costly and have dire consequences. The older you get, the less time you have to rebound from it.
It’s better to be safe than sorry
Many Baby Boomers look to invest in safe, conservative, value investments, so they know what they’re getting. They’re willing to forego the massive gains or upside that comes with high-risk investments, for the peace of mind that comes with conservative ones.
Those who have experienced tough financial situations and have learned from them have become financial analysts themselves as a later-in-life career.
The safety and security of a moderate investment can be worth more than the massive growth or potential to make more than everyone else. It makes sense why you hear older people say, “slow and steady wins the race.” They’ve been around the block, have seen the flashes in the pan, and understand how to do things the right way.
Moving slowly may not be fun, or flashy, but it gets you to where you need to go. Making impulsive decisions has the potential to hamper, or make people’s lives tougher, especially financially.
The older you get, the tougher it can be to manage your finances and maintain your lifestyle. Whereas people used to feel that the older you get, the easier it is, nowadays it’s more like the opposite especially if you have more responsibilities, more people to support, and more bills to pay. It’s always best to find a balance.
Have you been experiencing financial stress taking care of family members? Please leave a comment below.