Then And Now

Most people end up oscillating between two sets of philosophies—living in the present and living for the future. What may work, however, is something between the two

A friend of mine and her husband, like a lot of millennials and Gen-Zers, though they are not among them, liked to live in the present. For most of their working lives, the double-income-no-kids (DINK) family chose to live in a posh locality in Delhi, took frequent holidays, tried the best of cuisines regularly, and had a wardrobe full of the latest brands and styles. The cash flow was good, and they could afford all that they wished for, and still managed to save some money. The going seemed to be good.

After about 20 years of this lifestyle, my friend happened to lose her job during the Covid pandemic, while the husband had to take a steep pay cut. They managed to scrape through the tough phase with the savings they had.

The crisis was, of course, a rude shock, and they suddenly realised that they needed to shift gears. They were in their mid-40s and realised that changing jobs or careers was not as easy as it was before. They met a financial planner and realised that retirement was not as far as they had thought it to be and their savings was nowhere near what they required to even have a humble lifestyle in their older years. Now, they have multiplied the savings by many times, but at the cost of a major shift in their lifestyle, which both already rue.

An elder cousin’s frugal lifestyle is a case in contrast and may look like an ideal situation to some. She is in her mid-50s now and chose to remain single to support her parents. For most of her working years, she kept a limited wardrobe—she would alternate between two sets of clothes all-year-round and had a small stash of saris for special occasions. It was only after much prodding that she would occasionally go out with friends or family. She was pragmatic enough to save most of her income for her future. Her logic: I have no one to fall back on and I will enjoy life when I am certain enough about my future.

Recently when I met her, she said she had become financially independent and didn’t have to worry about her future anymore. While that apparently gave her much satisfaction, she also had a list of regrets. She rued the fact that now that she thought she had enough money to afford the latest styles, she no longer fit into the clothes she always dreamt of, or found them inappropriate for her age.

Some lifestyle diseases do not allow her anymore to indulge into anything but home-cooked meals, and travel plans now need to be more elaborate because she can no longer backpack for a budget trip.

What do these examples tell us? Squandering away everything on your present may leave you in the lurch in the future, but postponing all your dreams and wants to a later stage of life may not always be a good idea. Of course, these situations may not be true for everyone—people may be able to spend on all their wants and yet save enough, especially if they are in the high-income group, and they may be healthy and wealthy even in their 50s to enjoy life in all its forms.

But generally, most people end up oscillating between two sets of philosophies—living in the present and living for the future. What may work, however, is something between the two.

So, while it is always advisable to start saving and planning early in life, don’t sacrifice the little things to enliven your present. Try out those clothes you like, but don’t make your wardrobe overflow. Savour the taste of various cuisines, but don’t make eating out a regular habit. Buy the gadgets you fancy, but go for the features you like rather than the brand. Also, go on that international holiday all your friends have already been to, but remember to stay within your budget.