The last of baby boomers…

That’s right; if you were born in 1964 then you are the last of the baby boomers. I say that knowing full well that the images coming to mind are from the scenes in the film “Last of the Mohicans”.  Heroic images of Uncas running up the side of the mountain to save the daughter of the English General Munro just do not measure up to reality here folks. This “Last of” generation is more likely to be crawling up the side of a mountain of debt while at the same time flinging buckets more at the summit. Bodily, most of us can’t compete either. When’s the last time you jogged to the refrigerator and found yourself out of breath?

As one of the card carrying members of this fraternity, let me say that the odds are 50 – 50 on us making it through the current recession. We went in to it raised on the idea that everything we do and have will be better for us than our parents lives were, and that our children’s future would surpass ours. (Queue the rude awakening…) We have lived our lives on buying and then paying, with no doubts that we would be able to pay the tab and oblivious to the lifestyle conditions that our grandparents had to live with. The worse part of it is we show no signs of changing that way of living.

Like it or not we need to be changing all kinds of thought patterns, spending habits, and lifestyles in these next two years if we are going to adapt to the new reality. Chances are as a member of this generation growing up your dad probably worked at one job all of his life and your mom might have even been a stay at home mom. These characteristics are not a found in a high percentage of generation x or y’s. The old man might have even had a pension to retire on. We, as the “Last of” generation really fall in between the baby boom generation and generation x. There are no lifelong lasting jobs these days or the knowledge of a “secure” retirement. We bought too much house, took too many vacations and don’t even know how to define the word savings account, much less have one. From our generation forward there will be as many as different career paths as there are times we will have to reinvent ourselves.

We have to get in financial, physical, and yes spiritual shape. Not necessarily in that order, you tackle whichever one is most pressing to you. Maybe it’s the mid life crisis talking, but it sure seems to me that the majority of the 45 year olds in this world has a lot of work to do. Then again it could be just me, but most of the folks I know at this age if they are still married have both partners working and are only servicing the debt load that they carry. They spend all their time as slaves to things that they buy rather than bettering ourselves and our posterity. We are going to have to cut way back on our consumption and maybe downsize the house or a car to get debt free. Why do we need to? Unfortunately, I believe that when the massive stimulus runs out the consumer will still be so debt laden that they may not be able to pick up the spending pace and the economy will double dip into recession.

I figure if I’m right, we are looking around 2012 when we will have to live with both massive equity implosion and runaway inflation in certain sectors of the economy. Add to that a crushing tax burden that both parties in government piled on us while spending from the supposed bottomless purse of the American taxpayer. The real estate market is making a false recovery but there still will not be the demand that there once was with signature loans, NINJA loans, and stated loans out of the picture, then that also will head back down. The areas that will do well and cost us more will of course be health care, (either thru taxes for a government run system or the current one) energy, and other commodities. There are a lot of people on spaceship earth and at our rate of population growth; natural resources will eventually be consumed as ravenously as if those weird looking aliens from “Independence Day” were here. (Think of a Chinese, Indian, middle class circa 1950 – 2000)

The only way to get ready for that eventuality is getting oneself as ready for it as possible and we have to begin now. I prefer to work on the financial crisis first because if you don’t get that under control then the spiritual, physical side won’t matter in a couple of years. I know that order of doing things may rub some people wrong, but before you build a building you count the cost.  It’s time to sit down and open up a spreadsheet and start tracking what’s coming in versus what’s going out. Old fashioned tracking every cent spent against income is the only way to actually prove to yourself how you are living or over living. (I covered a way to tackle the debt bear in “Common sense investing and finance” in June 2009 so feel free to review the steps). Once you know for sure what comes in and goes out, you can develop your action plan for getting “solvent”

Spiritually, you are on your own. I spent enough years debating who is right and wrong in that discussion and I have better things to do with the rest of my life. I know whom I have believed and you can choose who or what you will serve and believe.

Physically, start eating right and at least take a long walk daily to extend your chances at a enjoyable life or spend it visiting health care professionals for aches and pains that show up with age and lack of exercise. A lot of damage can be reversed if you stop smoking, overeating, drinking, or whatever your crutch happens to be. Yes it’s hard, but so is life, get on board. Don’t let anybody tell you how quick you have to do it or that you need three servings of tree bark a day to melt off the pounds. Use your head; I’ve been losing a pound a month for 2 years now. Yes it’s slow as molasses in winter time, but it’s staying off.

In conclusion, remember if you were born in 1964 you are one of the last baby boomers caught in between two generations, learning to live a different lifestyle than the one you were raised on. Even though the government claims that they are going to ride to the rescue on the financial system, healthcare, and world peace, my two cents are that you need to get your own ducks in a row.

Until next time make good decisions not only in finance, but in life.