Baby boomers see things once classified as luxuries or discretionary items as budget essentials according to a recent survey on retirement readiness.
“Half of those surveyed consider annual family vacation or weekend getaways, having eldercare/home aid, professional hair cut/color and funding children/grandchildren’s education to be basic needs as well.
That escalation of what is “necessary” comports with my experiences as a bankruptcy lawyer. Most vivid recently is the single mother who wanted to keep a home with a neg am loan, whose debt service, in the neg am mode, took over half of her gross income. Her budget included $250/month for professional hair and nail color. My (unpleasant) role was to point out that she might be able to have one or the other, but certainly not both.
Looking with a cold eye to those expenses which have crept up to being “essentials” in a budget is certainly a start at getting control of family finances. Beyond food, clothing, and shelter, what is a basic for your retirement? What steps are you taking to be able to afford those items when you’re not working?
Image courtesy of LotusHead
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