Many people who are born in the 1920s, 30s, 40s….and are now in the twilight of their lives, have lived frugally. As these are the people who saw the British Raj, the second world war, rations, as well as the 97% Income Tax..they treat every bit of money as precious.

Not to say that money is not precious, but hey it is now time to spend! Go to a dentist, change your dentures. Travel by air, you can afford the taxi fare to the airport and the airfare itself. Paint your house, change your furniture – you can afford it, and it is worthwhile living well. 

I know of at least a couple of people aged OVER 85 years and penny pinching. How much is their net worth? Rs. 2 crores! One of them said ‘but for that I will have to withdraw from my capital’. I had to explain that withdrawing from the capital is a RISK only till the age of say 69-70, not at the age of 85. 

Hugely scared of ‘that one big medical bill which I may have to pay’ is really a big worry in a country where there is no ‘Long Term Care Insurance’. 

Having said all this, I do not think it is easy for a person who started on a salary of Rs. 120 p.m. to spend Rs. 12000 on a hotel bill or on a travel ticket. However at least parents who have big amounts of money stashed away in equities and real estate should learn to spend the dividends/ rents instead of saving that for their children. The children may or may not need it. 

But clearly YOU deserve it. So go live well – not that I am advocating a huge burn out (which you cannot do anyway!!) but at least the dentures, the gas, the furniture at home, the painting of the walls, the taxi ride and the plane ride….none of your grandchildren are going to miss the Rs. 200,000 that you used up while giving them Rs. 1,98,00,000…..

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  1. this article reminds me of my dadu ji……..it pinched him whenever he had to spend money on himself…..but was not a miser……!!!!! he was my hero…..he is no more physically with us now….but we can feel his presence in everything we do!!!!!! luv u dadu!!!!!!!

  2. I wonder if people have the energy to paint their house, shop for furniture etc at the age of 85. My dad is 76 and reluctant to travel long distances, since his feet hurts (edema).Overseas travel insurance is another big pocket burner after the age of 75. Travel and enjoy before you are 70.

  3. Subra Sir

    It’s not just a disease but a crime too. Have seen many whose parents underused their wealth and their kids fought or lavished the same in 1/10th of the time it got accumulated. So it’s important to get the balance between too much wealth and too less wealth Vs miserly living and lavish living.

    How you transfer the legacy, knowledge, wealth, values are all connected too may be.

  4. Mostly your article is suitable for 90% of middle class families in India,it doesnt mean Rs2crores, but even Rs2lakhs. They safeguard their money and they thinks they should not be a burden to their children at any way financially.So their mind do not permits to spend money unnecessarily as you mentioned for painting,gas,furniture. I think gas is a mandatory for cooking,so it will become recurring expense list for a family.

  5. This is true!

    Even i save a lot. i am 29 but i have got this desease inherited. but there is no harm in it actually.

    i do mumbai delhi and i choose train over planes. the money i save i buy a gold coin of 1/2 gram. I am not directly saving for my kid, but indirectly doing it. Also, these gold coins or crediting in PPF account actually is preparing me for worse days (god forbid).

    It is important to know alternatives. We order books through flipkart. Same books are available at the street side 30 rupees cheaper. I know i wont turn into a millionaire by saving 30 rupees, but as per your book INVEST 40 rupees a day, i actually lower my saving burden to 10 rupees.

    Keep posting. I love your articles.

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