I think it’s funny how the lines between NEEDS and WANTS have become so obscure. Here is a great article from MarketWatch which has a study showing what Baby Boomers are defining as necessities and luxuries.
As it states in the article there used to be basically just three main necessities: food, clothing and shelter. Now we see having an Internet connection is a need. I know I sure can’t live without it! And other things such as yearly vacations, eating out and the list goes on and on. Another main point it brings up is that traditionally, people approaching retirement have been net savers, as compared with younger generations, who are net consumers. But as baby boomers reached middle age, there was not much of a shift in spending behavior. Rather, boomers stayed in the net consumer phase rather than moving to the saver phase.
To me this all comes down to exposure and the ability to adapt. When you are constantly exposed to having, let’s say internet all the time we all know what going one day with out it feels like. But extend that one day to two or three weeks and we soon begin to adapt and realize that we really will not die without the net. In the same way if we have a good retirement plan that will still allow us to still live in the now and save for retirement, we will realize that we are capable of adapting and be able to have all the luxuries we want once we retire without having to push retirement further. Especially if you want to retire in a Beautiful Condo in Miami Beach Right on the Ocean, because you know we all do!!!
In this economy it is ESSENTIAL to adapt and see things in a different perspective and after the economy has gone through its cycle you will see the ones who adapted and overcame still standing.
Will you be one of those still standing??? I hope so……