As you come closer to retirement age, you will find yourself on the path to being either the one with the most toys, or the one with the most money. Deciding which path you take will not only affect your life journey, but your retirement future as well.
The One with the Most Toys
Throughout our lives, advertising tells us that those with the most and best possessions are successful and happy people. Spenders typically find more pleasure in possessing items than having experiences in life. While having a lot of toys may make you feel good in the short term, it may be hurting your long-term future.
By pursuing the latest and greatest toys, you can cause yourself to spiral into a debt situation that you may have a hard time climbing out of. While you may be able to work the payments into your monthly budget, you are accruing interest, damaging your credit score, and failing to save money that you will need in the future. Having high payments and a lot of debt can quickly become catastrophic if you find yourself confronted with high-expense bills, such as an unexpected medical situation.
Showing Off Your Success
Most people like the idea of amassing material items, because they feel as though it portrays them as successful. While having a fast car, large boat, and extravagant house often conveys success to those around you, you may find yourself in a private competition where you have the need to amass more. This can lead to over-spending and poorly researched purchases.
The One with the Most Money
Though considered less glamorous than the toy seekers, the money savers have the benefit of going through life with a feeling of security. Instead of the flash of material items, savers invest their money to secure the future that they want for themselves and their families.
Privately Enjoying Your Success
Instead of showing off your wealth, you will find yourself spending your money on items that can make you and your family’s life more fulfilling. Rather than having flashy cars and jewelry, you may take family vacations or make purchases that will be utilized more often with your friends and family, such as a pool. You may not be the envy of the neighborhood, but you will likely be more financially secure.
By saving, you will not only be confident that your future is secure against unexpected expenses, but you will also be able to enjoy the retirement you have worked so hard for over the course of your career. By investing your money, you may be able to retire much earlier than your over-spending counterparts without worrying about paying off any additional debt.
In the end, while having the most toys may give you temporary satisfaction, having the most money will ultimately help you win in the future. To discuss ways you can save more effectively for your future, request a call from an advisor at Retirement Advisors of America.
Disclaimer: This blog is intended for informational purposes only and should not be construed as individual investment advice. Actual recommendations are provided by Retirement Advisors of America following consultation and are custom-tailored to each investor’s unique needs and circumstances. The information contained herein is from sources believed to be accurate and reliable. However, Retirement Advisors of America accepts no legal responsibility for any errors or omissions. Investments in stocks, bonds, and mutual funds may increase or decrease in value. Past performance is no guarantee of future results. Any of the charts and graphs included in this blog are not recommendations for the purchase and sale of any security.