I’m a Retired Boomer: Here Are 5 Things I Wish I Knew About Saving Money 20 Years Ago
Written by
J. Arky
Edited by
Gary Dudak
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The Faces have a song called “Ooh La La” that has the refrain “I wish that I knew what I know now when I was younger.” Many feel that way, including baby boomers who have retired and now have plenty of wisdom to share with younger generations, particularly when it comes to finances.
In a recent episode of the “Women & Money” podcast entitled “Suze School: Avoid the Biggest Danger to Your Future Investments,” host Suze Orman shared a tidbit of advice about looking back on financial decisions: “Your biggest danger to your future investment success is your past wishes.”
Still, it helps to look back at the past to find out what you knew, what you still needed to learn and where you can go forward from there. GOBankingRates asked retired boomers to share things they wish they knew about saving money 20 years ago.
Keep an Eye on Credit Cards
Every generation learns about credit cards, most of the time the hard way. It usually begins in youth, when you get approved for a line of credit, rack up a bunch of charges without checking the interest rate and then find yourself saddled with debt early on in life.
David DiSalvo, a retiree from Nevada, shared that, in his experience, “credit cards should be a financial tool paid off at the end of each month. Shop around for cash back on purchases with your credit card.”
There are lots of great credit card options to explore at every stage of life, especially ones with rewards to get money back, airline miles and extra benefits.
“Credit cards are not to be used because you don’t make enough money for the style you want to live in,” said DiSalvo.
That’s because at the end of every month, you are responsible for paying that credit card off — or at the very least, the minimum payment.
Get Some Real Estate
There is one investment most retired baby boomers wish they had either bought more of or had bought sooner: real estate. It does not necessarily have to be a house or a building, just a piece of property that you can own outright and not have anyone take it away from you.
“Buy some real estate, any real estate, ASAP,” said Chris Vetrano, a retired vice principal from Northern California. “Even if you can’t afford it. The payoff is well worth it. Don’t listen to people who say the housing market will crash. Even if [it] does, it always comes back!”
You Have To Save and Grow Your Money
The notion is simple: save money. But the true lesson to be learned is that you — that’s right, you! — are solely responsible to take the reins and be vigilant about adding to your savings account.
“Money isn’t going to save itself,” explained Sharon Hudnall, a retiree in Southern California. “It needs to be saved.”
Vetrano agreed, adding, “When everyone on earth is telling you to save some of your paycheck because the interest compounds, it’s true. Do it.”
Don’t Just Save — Invest
Hudnall continued, “Twenty years ago, I trusted my money’s salvation to IRAs and 401(k) [plans], which matured into actual retirement funds, managed by financial nerds who could be trusted most of the time, but I suspect they sometimes took liberties.”
“Invest in the stock market on hunches you have about new companies,” said Vetrano. “I have Amazon stock that increased to $35,000 for a thousand-dollar investment. Wish I had bought more.”
The bottom line: It’s your money, and you have to not only save it, but manage and grow it. There are a variety of ways to do so and lots of experts who can assist you along the way, but it’s important that you are the one adding and growing your personal savings.
Do Not Settle on Cost
When it comes to major purchases, you want to ensure that you are getting what you paid for. That is anything from a home to a car to a business. The key take away that retired boomers have learned is that you always have options, so do not settle for the first offer, price or estimate given to you.
“Always shop around for value,” DiSalvo advised. “Comparison shopping can save you a lot. Negotiate on everything. It costs you nothing, and you can save a lot.”
DiSalvo is also a big fan of doing extensive research on purchases ahead of time and waiting until the time is just right to exchange the money for goods and services.
“Don’t just run out and buy something because you want it,” DiSalvo said. “If you feel you didn’t get the service you paid for… complain. A complaint in writing is helpful for you and your case.”
Learn To Live Within Your Means
At different stages of life, you will make different amounts of money and have various expenses that could fluctuate depending on your lifestyle. There will always be something you want to spend money on that you cannot afford.
“Make a budget,” said DiSalvo, “and live with it.”
It’s simple, yet sage wisdom that is evergreen throughout the generational divide and at every point in one’s life. On the other hand, some retirees have made do with just keeping expenses down to the basics and making sure to not spend extravagantly.
“We don’t really have a budget, per se,” said Vetrano. “We just try to put our health first and buy really good, organic clean food, not spend a whole lot dining out each month and plan vacations that are short but sweet. As retirees go, we have a very comfortable income after giving a combined total of 60 years of public service!”
Knowing how much income you have, what your needs are, what you want to spend money on and the ever-present cost of living expenses is key to managing your finances.
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