Aging Boomers Spending Less

It’s official, those of us classified as Boomers are spending less.  We’re  buying  fewer vacation homes, fancy cars, furniture and all the trimmings that  go with lavish vacations.  Why?

If this isn’t surprising, Bloomberg Businessweek is reporting we simply don’t have the money to spend right now.

Is this a trend?  Will our incomes improve as the economy improves?

We don’t know that answer.  What we do know is as long as interest rates remain low we can’t make that much off our investments and the interest from our stocks.

If, on the other hand, we have invested heavily in real estate as my family did, we’re still stuck working those investments.

Real estate is a 24 hour/7 day a week type of investment.   Tenants want what they want immediately. You’ll find yourself with tenants trying to text message you even if you don’t text message.  It’s not enough that they have your two main phone numbers and your personal email.

So what I’m saying is retirement isn’t even in the cards for real estate investors as long as we have our properties.  We’ll  still have the worries and the day to day operations of running a business even though landlording has improved a lot over the last year.

But here’s what really gets to me.

There are those in the  government  who somehow think we’ve let others down by not spending so much even if we don’t have the money.   When did that start making sense?

We’re saving more. But there are many so called experts who feel it’s almost our civic duty  to get out there and spend.

Here’s my response to that.

Frugality is not being cheap.  It’s being smart.  Our grandparents were very careful about spending.  They had to be.  They were living through a major Depression.  Many of us are currently  reviewing  the lessons learned during those terrible  years and that may be a good way spend some time.

I don’t think we’re going to can our own food like they did.  We’re not ready for those extreme measures, but yes, we’re going to watch our dollars carefully.  Why should that be a surprise to the government, Madison Avenue or anyone else?

Here’s the link to the Bloomberg Business article 

 

 

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