RETIREMENT AND THE URGE TO SPEND INDISCRIMINATELY - Odunze Reginald

In The Millionaire Next Door, authors Thomas J. Stanley and William D. Danko find that millionaires were more likely to drive a Ford than a Lexus or Mercedes.
“Many affluent respondents take joy in driving vehicles that do not denote so-called high status. They are more interested in objective measures of value. Some millionaires do spend considerable dollars for top-of-the-line luxury automobiles. But they are in the minority.”

But is it wise to embark on frivolous spending especially during retirement, from the little experience and my encounters with retirees spanning a period of seven years, I discovered that those retirees on frivolous spending usually end up miserable. There is that urgent desire to spend , and climb to the next of social mobility.

People according to psychology have fantasy of what they desire in life, they may tend to overlook it if there is no money, but immediately money comes in they tend to express their desire in their purchases. And as Prof Pat Utomi 2008 in “The Limit of lets share Economy, he stated that like people who won lottery, they often return to poverty.

According to Emily Brandon in an article captioned   “8 tips for people who will retire in 2015-Emily Brandon”  “What you decide to do in retirement will have a big impact on your costs and quality of life.  "Certainly you will spend less on gas and don't have to spend as much on work clothes, but some people are also going to spend more money now because they have the time and don't just want to sit around the house," says Craig Schmith, a certified financial planner in Durham, North Carolina. "If you've got pent-up demand to travel, especially internationally, and you haven't had time to do that, you need to think about budgeting that in."

What then should a retiree do during retirement? He should be very careful in his expenditures, he should be knowledgeable in financial planning , been able to identify assets and liabilities and making the best use of his time in profitable venture.

Culled from reginaldodunze.blogspot.com