3 Things Retirees Say They Wasted Too Much Money on When They Were Younger
Written by
Cara Danielle Brown
Edited by
Amen Oyiboke
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If retirees could offer their younger selves some wisdom, it may sound something like, “take the vacation,” “call your mother more,” or “please don’t marry that person.” And on the topic of money? Well, regrets reign supreme — particularly when it comes to wasteful spending.
Here are three things on which retirees say they wasted way too much money in their youth — and some advice for getting a jump on retirement planning while young.
Dining Out
Anthony Damaschino, award-winning author and recovering HR executive, remembers every vacation he took and every music show he attended in his twenties — but when it comes to dining out? “I do not remember 99% of the restaurant meals. A lot of dining out becomes an expensive blur … and it often costs the same as, or more than, an experience you’ll actually remember,” he said.
While he’s not against occasionally dining out, he’d definitely tell his younger self to spend more money on memories that last and less money on meals quickly forgotten. Otherwise, eat at home more frequently and save that money.
‘Too Much House’
Having grown up in a small apartment in New York City, Morris Armstrong, founder and owner at Morris Armstrong EA LLC, was determined to purchase a house with a pool and extra land.
Failing to take into account the associated costs, however, Armstrong purchased “too much house” –especially since there were only two people in a five-bedroom home and no plans to grow a family.
The lesson here is that ego and living above one’s means should never outweigh practicality. Looking back, Armstrong admits he “should have been setting aside money religiously on a regular basis.”
New Hobby Items
Having hobbies is great, but frequently experimenting with what hobbies you like can get expensive. Like most, Damaschino said he bought lots of generic “stuff” that he used one time and then wound up storing in his garage. Said stuff included a deep-sea fishing pole, a snowboard, random camping gear, games, and, oddly enough, ten captain’s chairs (though he can’t remember why).
In hindsight, buying all new items every time the wind blew was a giant waste of money. “I’d tell my younger self to borrow, rent or thrift the gear for the first try,” said Damaschino. “If you truly stick with the hobby, then buy the good stuff.”
How Can Young People Plan for Retirement?
For young people, retirement may seem far away. But it’s never too early to start thinking about it. Marianne Matzo, education director and podcast host at Everyone Dies, explains small steps young people can take to prepare for retirement.
Start Saving Early
Matzo encouraged young people to start saving for retirement at their very first full-time job. It may seem like you have forever, but the longer you wait, the more money you miss out on. This is because the longer you save, the more time your money has to compound. And the better you become at building the habit of setting money aside.
Don’t Plan to Rely on Anyone or Anything
Matzo warned there’s no guarantee Social Security will still be available many years from now — and, even if it is, it was never designed to be a retiree’s main income. She also cautioned not to rely on family or generous friends to keep you afloat in old age. Take the reins yourself.
Don’t Touch Retirement Money
It can be tempting to dip into your retirement savings, but resist. Consequences can include a 10% withdrawal penalty, income tax, contribution suspension, and, most importantly, lost compounding.
“Don’t let a ‘want’ in your youth be the reason you can’t afford food and other necessities in your old age,” said Matzo.
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