If you want to guess someone’s income level, look at what they buy. Obviously, the rich and the poor will spend their available funds on different things. Just what those things are, however, is less obvious. To illustrate, here is a pop quiz: Since 1992, what two products most consistently indicated that those using them […]
Tag Archives | spending
A colleague recently reminded me that there are ultimately two things we can do with money: spend it or give it away. That’s it. At first glance, this seems too simplistic. What about saving? What about investing for our future security? What about creating wealth?
It isn’t how much you earn that makes you rich, it’s how much you keep—your net worth. And it isn’t how much you are worth that makes you happy, it’s what you spend it on. Charles Dickens’s fabled Ebenezer Scrooge embodied this truth. . . . While he understood how to save, saving money didn’t […]
An estimated 10,000 people are retiring every day, and this unprecedented surge of new retirees is expected to last for the next 17 years. Many, perhaps most, will roll their retirement plan assets into an IRA account, and that money–plus Social Security and any taxable retirement accounts they may have–will provide their living expenses for […]
An unexpected trend has emerged due in large part to the economy. Adult children are asking to move back in with their aging parents, and the parents are saying “yes.” Most baby boomers do not have adequate savings, so the financial burdens of taking care of their adult children is taking its toll on their […]