Spending vs. Investing: A generational discussion

In this episode of the 2 Per-Specht-ives Podcast, it’s spring time and that can mean only one thing: Yard work. 

Co-host Joshua Specht needed a lawnmower and spent a pretty penny on it, which got him thinking about purchases that are an investment. His Co-host and father, David Specht, notes that no matter age, there are major purchases at every stage in life that are required or you decide need to be made. 

Your generational lesson: Don’t blow extra income on things you don’t need. Try to find areas where you can invest or improve your life for the future.

Your Gen. X Advice: Immature people do what makes them happy today and mature people plan for what makes them happy tomorrow. 

Your Gen. Z Advice: Survive off the peanut butter and jelly sandwiches now, so the lobster and steak dinners will taste so much better in the future.

Spring 2021 also means that it’s tax season and economic stimulus time. That gave Josh the opportunity to make the investment upfront, but be reimbursed by tax returns or the COVID-19 economic stimulus payments that are going out to millions of Americans.

With the economic stimulus, David says many people who have been able to work during the COVID-19 pandemic have been buying niceties and not necessities. 

He said in his younger days, he and his peers were all about blowing extra income. Now that he’s older, he wants to hold that money longer. For example, the 2020 economic stimulus was spent over the course of six months. 

That experience caused him to ask that you take a step back and look at what you can do with that money to invest in your future.

Josh points out that if it’s not a necessity, it’s about turning that money into a gain. For example, he was told that the best strategy with a stimulus you have but don’t need is to invest in an IRA. 

Dave says his generation views Josh’s generation as having a safety net in their parents, meaning the consequences of spending money are lessened. Josh adds that if your parents are paying for anything, there’s always a tension there and argues that those who can use extra money to pay off debt or make a move to get out on their own is a wise move.

Finally, Dave notes that’s why he advises you to find places where you can invest and buy things that will be of benefit beyond the now.