better one handful with tranquility than two handfuls with toil and chasing after the windEcclesiastes 4: 6 (NIV)
I listen to an investment talk show on the radio Saturday mornings while driving home from my prayer-hike in the Mission Trails Park (San Diego, CA). The hosts were commenting that the House (Congress) has recently approved changing working Americans retirement savings programs (the SECURE act) to help people who put little to no money aside for their “old age”. The radio show’s hosts were remarking how consumer debt is growing again, and with workers left to voluntarily invest in company 401K plans, IRAs (Individual Retirement Accounts) and funding emergency savings ( e.g. six months of expenses), fewer than four in ten are setting money aside. With consumerism driving cycles of economic growth followed by downturns, unemployment, and bankruptcies since the 1970s, are we headed there again?
Perhaps it is one of the failures of a developed nation that savings and prudent investment is not taught in the K – 12 grades nor in colleges. And young adults, free of parental guidance, are heavily marketed to obtain credit and jump into the consumer lifestyle. After September 11th, our youth grew up with continual exposure to negative future images – homelessness, refugees, terrorist attacks at home and abroad, a bleak economic outlook, and hostility toward “traditional values”. It seems almost forgivable that young people are seeking to have it “now” rather than later.
For the last of the Baby Boomers, for Generation X, and Millennials, the promises of Government, particularly those seeking public office by positioning themselves as champions of the disadvantaged, should sound like a broken record of the past cycles. For those between thirty and sixty years of age, the financial missteps of the past should have served as a lesson to improve one’s financial security. Into one’s Forties, obtaining a trade or marketable skill (regardless of one’s “passion”) can still provide for one’s retirement. The traditional “invaluable employee” mentality should improve wages. If wage or employment benefits stagnate, different employment has been increasingly available.
Like Solomon four thousand years ago expressed, seeking to keep up with the consumerism of one’s neighbors, rather than living prudently leads to “chasing after wind”. Delaying gratification, investing prudently, living within one’s means, and looking to your own welfare instead of the Government’s plans for you, leads to a golden “old age”.