The issue of a simpler lifestyle.

Connie Bruwer PC Bruwer and Partners discuss this important topic.

Question:  We are regularly confronted with the issue of ‘a simpler lifestyle’. Such a lifestyle is not only one of a number of truths – it is in most cases enforced on a person when he / she retires. Let’s talk a little about this, Connie.

Connie:  It is true that very few people have enough to invest in their pension funds to live like they did in their pre-retirement lifestyle after retirement.

It forces them to make changes in their lifestyle.

For many people this may be traumatic to do, but if you know that worldwide people are looking at a simpler lifestyle , it might be something to think about again and actually get excited about.

Question:  The question is: What can a person do to established such a scaled-down lifestyle and to ensure that they do not feel that you are being sent to a detention camp, but rather to a new adventure?

Connie:  It’s not nice when you have to work just to pay the bills.

There are some things that can be done.

* Buy a smaller house. It is expensive to have a big house and to maintain a large garden, as well as to heat a home.

* Drive a cheaper car because a cheaper but reliable car usually consumes less fuel.

These days most cars, even ones with an engine of 1,600 cc, have many luxuries and you do not have to feel that you are worse off than you are by driving a cheaper car.

Many people are willing to do with such a sacrifice if such a sacrifice means that you can play golf more often or go on holiday.

Question:  What else can be done?

Connie:  * Leave the expensive TV services. There are cheaper alternatives available that can also offer your favorite shows.

* Interest. Cut the credit card in half, or ensure that you pay the full amount outstanding every month.

* Pay your car off in three years. Pay extra money available on your home loan.

This way you can saving a decade or hundred thousands in interest.

* Do not buy what you do not really need.

* If you are already doing these things, you may “afford” a simpler job.

A less stressful work and one that provides you with more time to go walking or jogging or playing golf – is something that can improve your lifestyle without it costing you a fortune.

* Do not acquire debts. It will mean that have to work harder later on just to pay back the debt and you cannot enjoy the important things in your life.

Question:   As people’s income increases, and they can afford more, goods and services that were previously a luxury is now considered a necessity. One must be careful against this.

Connie:  As people get older and their children move out of the house (and their pockets), they can in afford a more luxurious lifestyle.

It will then be difficult to scale down when you retire.

The same thing happens when people change jobs and they withdraw retirement provisions and use the money for a well-intentioned priorities such as to pay off your house.

With the mortgage out of the way, you can improve your lifestyle, but when you retire, you will in any case have to start doing the things I mentioned above since your retirement savings will be too little.

To start living a simple life before a forced retirement age, will mean that you enter into a mini-retirement.

A lot of people will not understand what you’re doing.

Question:  It’s always surprising when a senior person in an executive position resigns and says he will pursue his own interests.

Connie:  Maybe he can afford to downgrade early, but it also means that he is walking away from the security he had. Usually such a person begins a second, but quieter career. Something simpler.

Or the person may get involved at the church or a charity.

This also applies to those who are about to retire.

If you can start implementing such an easier lifestyle, it might mean that you might have more to give to the less fortunate.

And if your stress is less, you will in any case live a longer, happier and healthier life.

Why not?

In some cases, it may just be important to ensure that you enjoy your work and you do not work to live.