Anonymous wrote:
Anonymous wrote:Another thing is that if you don’t learn how to spend (responsibly) now, you definitely aren’t going to learn it in retirement. You will be too set in your ways at that point. I have seen countless retirees who sit on huge savings and do nothing with it because they lived their lives saving every dollar possible, and they don’t know how to spend.
I don't think it's that hard to learn how to spend money responsibly - at least it's not harder than saving every dollar possible. I also kind of doubt that these people regret dying with money in the bank, and they probably enjoy being able to pass down their wealth to whoever they want. I think the way to convince people who've been scrimping their whole life to spend more is to figure out what their goals are, and show them why spending now, rather than later, will align with those goals.
For example, the Die with Zero author makes the argument that, no matter what you want to do with your fortune (spend it, pass it down to future generations, donate it to charity), that it's best to start doing it earlier than later. I believe his book (only listened to a podcast) talks about how charities can change with subsequent directors, so you don't know how they'll be run 5 to 10 years into the future, and that it's easier to make sure the charity aligns with your goals if you're still alive when giving them the donation. For giving to future generations, it's better to help them fund college, grad school, down payment for a house, etc., than to give your 60 year old children a lump sum.
Obviously, with travel, you'll have more fun doing it at age 40 than 70. If you have family members that refuse to spend, maybe try talking to them about what they're hoping to get out of the money that they're saving.
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