6 things the elderly can do to overcome frugality mindset: What they can learn from youngsters

There is a generation that does not know how to spend. It seems incredulous, especially to the consumerist youth, but is true for a large segment of the Indian population. I belong to that generation born in the 1950s and 60s. We know that we are so much better off, that our children don’t need our money, and that we don’t have to worry about the future. Yet, we don’t know how to spend and indulge with a carefree heart that is not anxious.

We spent the impressionable years of our life witnessing scarcity at close quarters. When we were constructing our 600 sq ft house, cement was a controlled commodity bought few sacks at a time, and kept covered in plastic so the rains wouldn’t harden it to waste. We stood in line for kerosene and sugar, walked long distances to school in sun and rain, and accepted frugality in every form as a way of life. By the time we were in college, the spectre of unemployment loomed large. If not for job reservations, PSUs and bank nationalisation, many of our generation would have struggled to get a job with our maths, physics and chemistry degrees.

The liberalisation of the 1990s opened the private sector for so many of us. As employees and shareholders, we managed to build wealth beyond our limited imagination at the time we started working and saving. Even as we cared for our parents, who had frugal pensions, limited Provident Fund corpuses and wealth, we didn’t know we would turn out to be comfortable pensioners and pushed into the upper middle class with a decent amount of wealth. Our children did so much better, pushed partially by our eagerness for them to do better, and also by the world of opportunities and plenty that emerged as they grew up.


However, we are unable to change our mindsets. The young spend because they are optimistic and fearless about the future. We freeze at the idea of letting go because we worry about the rainy day, and are too used to frugality to feel its pinch. What can we do about it?

Know that the corpus is enough

First, stop saving more. Make a simple rule that whatever has been saved and invested so far is enough. There is no need to add to that corpus. Find ways to use the income that comes in. Buy plants. Call friends over and cook a warm meal. Tell yourself that you will have a plan for the monthly income and ensure it is utilised well. Giving up the habit to set something aside is tough, but that is the place to start this journey.

Second, prioritise your comfort and happiness. We are so used to the lofty ideals of sacrifice and frugality that we think it is virtuous to underplay our own needs. It is important to identify the ways in which we can use our money to make things more comfortable for ourselves. Upgrade those mattresses and pillows; invest in better quality footwear; buy a stove that makes your everyday cooking easier; and make a list of upgrades that will enhance your everyday comfort.

Third, allow some space for indulgences that can bring relaxation, relief, joy and happiness. Order in good quality food to get a few more hours of sleep or to finish off the book you started. Plan a weekly date at the movies and your favourite restaurant. Schedule a massage and self-care routine. The money you have no longer needs to be allocated to others first; place yourself ahead in that queue.

Fourth, be willing to spend on experiences that matter to you. Book a room that faces a mountain range or the beautiful beach, and enjoy sunsets. Drive out to stay at a village resort for a few days of serenity in nature. Your travel does not have be driven by a bucket list or the pressure to post pictures on social media, nor does it have to involve advance planning over a long period of time and an elaborate itinerary. The power to spend is the primary driver of spontaneity and impulse. Benefit from it.

Fifth, charity doesn’t have to be large, substantial, and back-ended. You may have written a will that distributes some of your wealth to the needy, but you can do your bit during your lifetime as well, with the power of the money you have. Make it a habit to give away small sums on a regular basis. Buy a blanket for a homeless person; pay the hospital bills of a needy person; buy some food for the hungry while eating out; tip your driver, priest or server generously. Being partial to small business owners near you, encouraging them to deliver good value, is also an act of kindness though they don’t expect charity. Allow your money to make a difference to ordinary lives around you.

Sixth, do not flaunt your money to make others around you feel small. If you decide to spend more and better, make it a personal and private affair. Being bombastic about it defeats the purpose and creates resentment. It can also attract hangers-on, who decide to take advantage of your new-found laxness with money. If you let others in, or make it a spectacle for approval and appreciation, you lose the power that your money offers. Do not jump in and insist that you will pay the restaurant bill while eating out with friends; be indulgent, instead, when you dine with your family. Don’t buy expensive gifts and present them with pomp. Don’t advertise your business class ticket and chauffeur-driven car: learn to spend with discretion and privacy.

Beat the imposter syndrome

There is a psychological hurdle called the imposter syndrome. We feel like what we have is undeservedly ours and fail to own our success. Barriers to spending can also come from this attitude. Let’s resolve that spending can be joyous if we are able to consciously allow the money we have to serve our needs, identified with care, honesty, purpose and liberty.

Enjoy what you have earned through years of hard work and enable the world around you to benefit from your being able to loosen the purse strings.

The Author is Chairperson, Centre For Investment Education And Learning