It’s hard to spend money.
I made a spending decision for my 60th birthday. Big news, right?
Not normally, but for some reason I had a difficult time with what should have been a simple decision. What that decision was, and the process I went through to make it, is the subject of today’s post.
It’s relevant for all of us, especially those that have been lifelong savers and now realize how hard it is to spend money in retirement. (If you’re not yet retired and find that hard to believe, just wait). I’m writing these words in the hope that the insight into my thought process will help when it’s your turn to make a spending decision in the days to come.
This a story about realizing it’s hard to spend money, and, more importantly:
5 Questions that will help you overcome a lifelong habit of frugality.
Below is the process I went through on my recent spending decision. I encourage you to review the questions I asked myself and consider asking yourself the same questions when you face a spending decision in retirement.
We’ve worked hard for our money, but it doesn’t do us any good to be the richest corpse in the graveyard. It’s time to spend money, wisely. And that, in a nutshell, is the purpose of today’s post.
I was frozen in indecision. Ultimately, I decided to spend the money. I'm overcoming a lifelong habit of frugality, and these 5 questions helped me take the plunge. Click To Tweet
It’s Hard To Spend Money – A Personal Experience
One option was on my right, the other on my left.
I was frozen in a paralysis of indecision.
Right or Left? Cheap or Expensive? My mind churned, but the decision eluded me.
Why was this decision so difficult?
Stop. Breathe. Think.
As the only customer in the store, the three employees watched as I quietly fought the struggle inside my mind. The thoughts flowed, and the debate raged. A decision had to be made, and a decision was (ultimately) made. It was time to break my lifelong habit of frugality.
I chose the one on the left.
The expensive one.
Why Is It So Hard To Spend Money?
I’m not alone in finding it hard to spend money in retirement. Enter “Why is it hard to spend money in retirement?” into Google, and you’ll get over 112 million links. One of those points to one of my favorite writers, Ben Carlson, and his article Why It’s So Hard To Spend Money, in which he states the following:
“One conclusion we can draw from these studies is many retirees simply can’t force themselves to spend down their portfolios, even those with the financial wherewithal to do so.”
I could focus this entire post on the psychological barriers to spending money in retirement, but I’d rather focus on the things we can do to make spending easier. As a reader of this blog, you’re likely responsible with your money. Being TOO responsible, however, can lead to a life of excessive frugality. Retirement is a time to unlearn your lifelong frugal habits and learn to enjoy spending within your safe withdrawal limits.
Ironically, as I was editing this post I came across a recent podcast from the Mad Fientist titled How To Spend (and Actually Enjoy It), where Ramit Sethi made the following quote. It’s so relevant to this article that I had to include it:
The point of living a rich life is not to save money. It’s not. The point of a rich life, in my opinion, is to design a rich life that excites you and then use your money to live as meaningful of a life as you can. So I’m all for a high savings rate and aggressive investments and earning more. I’m totally for that. But there’s another side of the equation that too many people ignore and that’s what I’ve been very excited about.
– Shoutout to my friends at Apex Money for sharing the podcast and the quote.
As I struggled with my recent decision, I discovered 5 questions to ask when you’re preparing for a purchase. They helped me pull the trigger on the expensive option, and I suspect they’ll help you, as well. As Ramit would say, it’s a focus on the other “side of the equation” that’s too often ignored.
How I Made The Decision To Buy The Expensive One
I decided to buy the Marin Alpine Trail E1, my first plunge into the “e-MTB” category of electrified mountain biking. It was “the one on the left” in the story above. The choice on the right was a more standard mountain bike that lacked the electric motor (and, as a result, was significantly less expensive).
The Alpine Trail was almost 3X more expensive than the other bike, but I bought it anyway.
Why?
Because it was the right thing to do, for me, at this point in my life. I realized that only after answering the following 5 questions in my mind while those three employees waited patiently. And the questions I asked are, in hindsight, the real value of today’s post.
5 Questions To Make It Easier To Spending Money
I’ve shared how I’m Learning To Spend in Retirement, but I’m far from mastering the change, as demonstrated by my struggle buying the e-MTB for my 60th birthday. I didn’t have a formal process as I stood in the store debating the purchase. However, as I reflected on the experience after the fact, I realized it was the following 5 questions that ultimately led to my decision.
Thinking through these questions provided significant value during my decision-making process and the lack of buyer’s remorse afterward. I encourage you to keep them in mind as you work toward building the freedom to spend in your retirement.
1) Will The Purchase Materially Impact Your Wealth?
The first question I encourage you to ask is how material is the purchase you’re considering? The less material, the less thought that should be required. As I wrote in How Much Can You Safely Spend In Retirement, you must have a process to spend within your targeted Safe Withdrawal Rate. If you’re like many retirees, however, you’ll find yourself spending below that rate.
If you’re below your SWR spending level, the decision should be easier. I say “should be,” because that was my situation when deciding on the bike but it still wasn’t easy. Knowing, however, that even with the purchase I would be within our SWR limits removed one barrier in the decision-making. At that point, I knew the real obstacle was my habit of frugality, and it was within my control to start breaking this long-held habit.
2) Will This Purchase Improve Your Life Experience?
The retirement journey is a journey that will last until you die, and one of your goals should be to improve your life experience to the extent possible while you still can. As they say…
…If not now, when?
I give credit for this question to Stop Ironing Shirts, who brought this question to my mind in his recent post on risk, in which he cites three financial choices that remain after achieving FI, with the first being “using money to improve your life experience.”
I’m not getting any younger, and the hills have gotten harder. Try as I might to keep in top shape, the reality is that climbing the mountains I call home has been hurting more and more with the passage of time. Going anaerobic on a big hill in the middle of a 2-hour ride isn’t much fun (I hate bonking). Besides, recalling the advice in Younger Next Year, it’s not required. A moderate 45 minutes of exercise per day is sufficient.
I’ve been a mountain biking “purist” for years, and always felt that using an electric motor would be “cheating.” However, facing the reality of my future, I knew the e-assist would improve my life experience. It would allow me to ride trails I’ve been intentionally avoiding the past few years because I knew they had BIG hills, and it would give me the ability to continue to ride in the woods well into my 70s.
I love riding in the woods. Always have. And now, always will.
I took my first ride on the e-MTB last week and instantly fell in love. In spite of the e-assist, I was still able to get in a good workout (per my Fitbit, I had an average heart rate of 128 bpm, with a peak of 154 bpm, during the 1-hour, 20-minute ride. It was an easier workout than my typical Spin session, but a lot more fun and sufficient to maintain my fitness). I smiled every time I came to a big hill and cranked up the motor to “Boost”, keeping my heart rate in a safer place and making the ride a lot more fun.
What can you spend money on that will improve your life experience?
3) Will You Have Regrets if You Don’t Make This Purchase?
The question that ultimately clinched my decision to buy the e-MTB was this one.
I’d been thinking about buying an e-bike for the past year, and I knew I’d regret it if I went with the traditional bike. As I stood in the store, I looked ahead and pictured myself riding it up those big hills, cursing myself for not going with the e-assist. Having the answer to the first two questions in mind, it became an obvious choice.
Avoiding regrets. It matters.
Avoiding regrets has been on my mind since reading Taking Stock, and I’m glad I asked myself this question during the bike purchase decision. Last week I read an interesting post on How To Get Clients To Spend Money from Advisor Perspectives. It was after my purchase of the bike, but they nailed it with one of their pieces of advice. “Look ahead – think of your regret for missing out on a vacation of other dream purchase.”
Look Ahead.
I did exactly that as I stood in the store, and it helped me make the right decision. If you’re thinking about buying something, picture yourself in the future. Which will bring more regret:
Making the purchase, or…
…NOT making it?
4) Have You Done Your Homework, or Are You Being Too Spontaneous?
I thought about buying an e-bike for a year. I was having a pesky problem with my old bike and had spent $300 trying to fix it without luck. I put up with it for the past year but didn’t want to plow more money into the old bike without assurance the fix would work. I knew the time was coming to buy a new bike. I thought a lot about the cost vs. benefit of an e-MTB and was leaning toward taking the plunge. I did some research, and I started educating myself on the topic.
Before I entered the store that morning, I decided I was going to buy a bike.
I found that to be another helpful tip if you’re finding it hard to spend money. I knew I was going to buy a bike, but I hadn’t yet decided on whether I was going to spend the extra for the e-version. Telling myself I was going to buy a bike made it easier to spend the money. I also had an online bike I was considering, and showing that to the sales representative helped in my negotiation process.
Below is a YouTube video I found that rated the top 10 e-MTBs in terms of value. The one I chose was rated #1.
Thinking of making a big purchase? Do your homework first.
5) Are You Getting Good Value For Your Money?
Tightwad habits die hard.
That said, it doesn’t mean you can’t spend money. I’ve been watching for mountain bike sales all year, knowing they typically go on sale in the spring. I saw that the local bike shop was having a 20% sale and decided the time had finally arrived.
Having done my research (see #4), I knew what e-MTB’s sold for. I could spot a “fake sale” if it happened. The sale was legitimate, and the price was the lowest I had seen during my research. Knowing I was getting good value for the money made spending the money easier. Adding in the benefit of the e-assist created more value than the additional price incurred.
Value is about more than price.
Know what matters to you, and focus on the features that will improve your life. If they cost a bit more, that’s ok as long as the benefit exceeds the price.
Conclusion
It’s hard to spend money in retirement. That’s no longer an excuse.
Since you’re reading this blog, I assume you’ve been responsible with your money and lean toward the frugal side. That habit has served us well in reaching The Starting Line, but it’s a habit you should consider breaking in your retired years. By asking yourself the following 5 questions, you’ll be well on your way to improving your life with sound purchasing decisions:
- Will the purchase materially impact your wealth?
- Will this purchase improve your life experience?
- Will you have regrets if you don’t make this purchase?
- Have you done your homework, or are you being spontaneous?
- Are you getting good value for your money?
If you’re trying to break your frugal spending habits, I encourage you to read my related post “5 Steps To Learn To Spend In Retirement.” Combined with the 5 questions presented today, you’ll have all the tools you need.
I made a purchasing decision for my 60th birthday. I chose the expensive one. If I can do it, so can you.
Go spend some money.
Wisely, of course. 🙂
Your Turn: Have you found it hard to spend money in retirement? If so, are there any other questions you’ve asked yourself or tips you’ve found which have made it easier? Finally, are you considering any major purchases? Have these questions been helpful? Let’s chat…
First off, any post about a bike with pictures and videos of bikes is MY KIND OF POST!! Haha. As you know I already commented about your new steed on Twitter and it is indeed sweet. I seriously do hope to ride with you one day. As for why it’s so hard to spend, for me it’s the “catastrophe mindset” that my depression-era parents implanted in my brain. It’s so hard to get out of that mindset…. I was taught that we always need to keep preparing for the doom that is coming. And even though I’m good at math and a numbers guy, when I look at my net worth and pragmatically know I should be able to “by that thing”, the emotional part of my brain with those damn depression cells screams “you’re jeopardizing our future!”
Meanwhile every day my future is getting shorter. 🙂
Great post, get out there and SHRED!
4:33 a.m.? Dave, you’re killing me! I’d love to get a chance to ride with you someday. Maybe I can keep up with your blazing speed now that I have a “cheater?”
As for the depression mindset, I’ve no doubt that influenced our parents and has had an impact on those in our generation. It’s hard to overcome that emotion, but try we must. I hope the 5 questions help others.
Let’s ride!
I am 60 years old and have a different perspective. In 2019 I spent 2 years disposing of most of my possessions and I sold my home and moved into a small apartment, adopting a sort of “minimalist” lifestyle. My previous life included a million-dollar home and as many possessions as a person could possibly own. The change to a minimalist lifestyle has been one of the best decisions of my life. I now have time – lots of it – and peace and tranquility – which is priceless to me. My “self-awareness” has gone through the roof and I live in and enjoy the moment like I never have before in my life.
When it comes to buying more possessions my advice is to abstain and do without. I know this is not a popular opinion and is contrarian to American culture but I urge all to give it a try. I live a simple, happy, fulfilled, and healthy life now in peace. I chose to continue to work full-time and contribute to my community and the world. Less stress and more time for deeper relationships. I am not a big believer in “retirement”. Possessions just own us and burden our life. Instead of buying things I now invest my income in worthy causes like saving the wildlife in Africa (African Parks) and the rain forests in South America. Best wishes to all!
Mark, thanks for offering the counter-viewpoint. I agree our society is too obsessed with materialism and my wife and I have also made a significant downsizing move in retirement.
That said, I still feel there are times when it is appropriate to purchase items (including experiences) that will improve your life, and based on the research many retirees have a difficult time giving themselves the freedom to spend. Like most things, there’s a spectrum, and where you fall is a personal decision. If you’ve been too frugal, try spending a bit more. If you’ve spent and found materialism doesn’t lead to happiness, try frugality.
Also, I appreciate your comment about increasing giving. It’s also something my wife and I are doing, which I mentioned in the “5 Steps To Spend” article linked in the post today.
Thank you Fritz. I forgot to mention how meaningful your articles have been to me over the last few years – so much wisdom from someone still living! Thank you for taking the time to write and share your wisdom.
KIndest regards.
Just turned 60 and I’m in the process of also clearing out unneeded things with the thought that I’ll sell the house and live on the road for a while with a small towable camper, and maybe a home base somewhere for rest and recovery from travel. I’m a planner and always planning the next 10-20 yrs, so I’m already looking at what I’ll need when I slow down a lot 70-80s, so I don’t want to be premature in unloading the paid-for home in a nice quiet, safe neighborhood. The house seems to be what “owns me” and hard to separate from the safety and security of it.
Great post. I have been hearing/reading a lot about spending nowadays. Mad Fientist, Choose FI and now you. It is interesting how you all three are thinking about this topic at the same time :-). In addition to the five questions you have, one thing I ask myself is whether I am spending because of social pressure or impress others or truly to my satisfaction. So the question I ask is
” If no one could see or comment on your purchase, will you still make it”? I enjoy road biking and a few years back I spent a good amount buying a Trek Damone . It was a big upgrade from my $200 Walmart Schwinn bike. I made it because I am truly enjoying biking and this will improve my riding experience.
Patrick, ironically, I started this post before I saw all of that other content, but it certainly influenced me as I wrote this post. I loved Ramit’s content on the topic (he’s also been active on the topic on Twitter), and I’m glad to see others addressing this area that’s been under-served.
I love the “social pressure” question you added. A great contribution to the discussion! I hope you enjoy the bike as much as I’ve been enjoying mine.
I think (perhaps mostly for women?) this question applies to kitchen and bathroom remodeling decisions. I‘m quite happy with our late 1970s kitchen and 1990s bathrooms, but somehow always feel a bit relieved when I visit someone who also has decided they‘re OK without a Wulf stove or a Sub-zero frig. We do spend money on things (including home improvements) that we care about, and keep up with the never-ending maintenance of a country home, but we know we‘re extremely lucky to live in a beautiful place with wonderful neighbors, so we spend mostly on things that enhance our interactions with friends and family.
It is hard to spend money when inflation is running way beyond historical norms and SS is in question. When I retired 2 years ago never expected this dollar erosion. And with our current administration the giveaways will continue and taxes will be raised. In uncertain times it is difficult to part with retirement money. Oh, and if a wealth tax is enacted those of us that worked hard and invested all our lives will be penalized. Sorry for the negative post, but it is the current reality.
Not quite retired but in the last final years…..the struggle to spend now is real can’t even consider post retirement! I now have a handy bright yellow card to add to my affirmation wall on how to spend! Can’t take it with me, my spending makes no difference to my life in general and most importantly my daughter will spend her inheritance quite happily!
Bob, no doubt, there are always economic concerns. I read an interesting post this morning that may be of interest, link is below. There is always something to worry about. If a retiree has done a good job in their planning and remains below their SWR, there’s nothing wrong with spending a bit to enjoy your golden years. The worry will always be there, it’s simply a question of how much you let it influence your life.
Here’s the article I mentioned, titled Why Economic Uncertainty Doesn’t Matter. Food for thought…
https://milehighfinanceguy.com/economic-uncertainty/
Thanks for the share, Fritz, and happy birthday!
Regarding spending money, it is challenging to overcome frugal spending habits. I realized a couple of years ago that I had taken frugality to an extreme, and increasing my spending to a more comfortable level without jeopardizing my future was tough. Glad you broke the habit and chose the bike you wanted, and I hope the questions above help others too.
Also, nice choice on the Marin! They have released some great options in recent years, and that eBike looks fun! I ride a Gen III Santa Cruz Nomad, and sometimes I wish it had a motor for the uphill technical climbs outside of Denver!
Bob, Wealth tax? Unfortunately, too many folks are defending the ultra rich agendas because of great marketing(using fear not logic)-thinking somehow they will be effect. This is the wealth tax that is being purpose:
Taxpayers subject to the wealth tax: those whose net assets (i.e., assets minus debt) are valued at over $50 million, based on their 2022 valuation
Tax rate: 2% on net assets valued over $50 million and up to $1 billion; 3% on net assets in excess of $1 billion
Assets subject to tax: all types of assets—anything that the wealthy person owns, including stock, real estate, boats, art, and more
Revenue effect: S.510 is estimated to raise up to $3 trillion over 10 years and to apply to approximately 100,000 households.
If you are being affected directly by the above—CONGRATS!
My wife and I took an E-bike tour in Blue Ridge last year and are now big fans of them plus the mountains didn’t disappoint either ! Had to make a decision last night on washers and dryers and chose the more expensive for the same reasons you outlined! Great post and enjoy the rides !
What??!! You came to Blue Ridge and didn’t let me buy you a coffee? Tsk Tsk.
I know my bad – it was the weekend we also had a Pickleball tournament in Ellijay! On the day we had the e-bike tour we also floated the River on a tube which was something we hadn’t done either!
Earning, saving and investing is to prevent us from experiencing the ill effects of poverty (reduce risk of experiencing negative emotions from poverty). They don’t bring happiness and pleasure. Spending money brings happiness and pleasure (improves positive emotions).
Interesting comment, hari. I would say both can lead to happiness, when done in good measure. Thanks for the brain food today.
For a significant purchase like this another way to dip ones toes in the water is to rent first. Renting may also inform the buying decision, i.e. which make/model, features, etc. I saw an ad recently for a boat club membership and thought, what a great way to test out boating before buying a boat. After using one for a few times does the excitement run out? If one likes it, what type, size, features, etc. when making the buying decision.
Great addition to the discussion, Frank. I made the “rental suggestion” in a post I wrote about our RV purchase, certainly a viable way for someone to test the waters before jumping in. Thanks for adding value to the discussion.
At 62, I am currently past the average age of usable life of my all now deceased nuclear family. He who dies with zero wins is my plan. My new e-bike is being assembled at the bike shop. It is road/gravel. My MTB is still regular but may transition. Also still have road, gravel, and trainer (old road) bikes. For me: Live now, Tomorrow is not guaranteed
“Tomorrow is not guaranteed.”
Good reminder of the importance of enjoying every day we’re given. I hope you find many days of happiness on that new gravel bike!
Fritz, you are spot on with regard to spending in retirement. I just retired January, 2022 and the adjustment is significant. Hubby still works and will retire in this September. Personally, i make an analysis of every purchase and consider value of everything I buy. This has helped me in saving quite a bit for retirement. I learned the hard way through the influence of frugal depression born parents. However, i personally struggle with spending money now and get the guilts all the time. Mom is still alive, close to 95 years old and she has never broke her old habits. She has a horrible time spending money on herself especially when she needs it. But thanks for these tips. I hope the advice helps.
Glad to hear the post resonated with you, Joanne. Congrats on crossing The Starting Line (and yes, it is a significant adjustment!). I hope the 5 questions help you get over the “guilts,” that’s precisely why I wrote the article.
Great post and thank you for sharing! Although I am not retired, I am close and after years of saving the idea of spending pops the head. However, recently I bought a guitar that I know will become a child’s problem one day to figure out what to do with it. I was at the store looking for a mahogany guitar and I lined up 5 I wanted to try. The price was between $300 and $1,300. There’s more the guitar back story but that’s another day.
Anyway I went with the Martin OOO-15M because after an hour of playing the different types I kept going back to it. I was going to give myself the usual 24 hour wait before buying but I knew I would regret not getting it. I also knew it would help me play better and most importantly it made me smile and feel awe at the craftsmanship. Your article summed up what went on in my head while I was in the store so I bought it.
When I got home my wife was shocked that I actually spent money, not at the amount. She said, “Wow that must really be something for you to do that. I’m guessing you are going to do your best to wear it out now.” She’s right, I am. I also know now why Willie Nelson saved Trigger. Sometimes a thing moves you in ways you don’t expect.
Great story, Bill, and an example of “value” being so much more than price. Enjoy that guitar, glad you found the courage to “pull the string” (bad pun) on the spending decision.
What a perfect post for me. I’m in my low 60’s and have worked hard and saved my whole life. Have accumulated way, way more than I need to retire.
I reduced working to a few days a month just to keep my hand in a health care profession. I have tons of free time but I just can’t increase my spending. I have been struggling with this for a long time.
I still have the save, save, save mentality. It’s silly to keep saving especially bc Pennsylvania has a steep inheritance tax. Over 10% of my savings would be due to the State.
I hope I’ll be able to use your 5 tips to spend more. Thank You for this great post.
“What a perfect post for me.”
As a writer, I could ask for no greater compliment from a reader. Good luck learning to spend, recognizing you have “way, way more than I need” is the first step. Hopefully the 5 questions will get you over the “guilt hump.”
Top of the morning Fritz!
Firstly, about an ebike purchase that I made. At age 62, I bought my first ebike with the fat 4″ wide tires. Love it! Pedal as much as I desire and then use the motor when gassed! She gets up to about 22 mph in fifth gear. How about yours? I did not struggle with making this purchase as I had researched them utilizing Amazon. Got good value for my money.
Carol and I struggle with spending in retirement also. We do plan on paying cash for a new home purchase next year but don’t do as well with our daily spending. We have no problems giving though! 🙂
What we especially struggle with is spending ANY of our inheritance. We did not make “it” and don’t really want to spend it. I do think that all of it will end up with our children/grandchildren. We pray on where He wants us to give our money to and will continue to do so. Buying new things brings us happiness for a while. Joy in my heart is what I aspire to. You can not take anything to the grave with you, so I get why people spend theirs while alive. I do know that vacations with our kids and their kids is in our future. We are building a new deck for them at their new home. Money well spent….experiencing bbq and suds with them for many years to come, on their new deck.
God bless you and Jackie. Many thanks for all you do for many dogs in your area, Steve
22 MPH on those 4″ bubble tires is crazy! I don’t know my top speed (yet), the single track trails I ride around here are far too intimidating to go for a speed record. 🙂
Interesting comment about the inheritance. I really enjoy building the barn in honor of my Dad, may be something you could spend some of it on in honor of those who left it for you. Think about what they would want you to do with it, may also help get over the struggle. Thanks for your kind words (and yes, we’re still helping the dogs, starting fence build #94 this week!)
Great framework Fritz. One huge problem is that many of the financial advisors out there are sounding alarms of running out of money, sequence of returns risk for near/recent retirees, unplanned medical cost, etc. The absolute key is to have conviction in your SWR (withdraw rate) and investment decisions…..then spending becomes easier. If those foundation elements are shaky, you will never break the frugal habits that got you there.
Good point about “the industry” promoting fear. It’s good for their business, but can be bad for our lives. I agree the critical element is developing a robust plan with a sound basis for the SWR, then give yourself the freedom to spend within your previously defined limits. Thanks for adding to the discussion.
Great post. We recently did something similar. Have enjoyed riding our bikes and travel with them around the US. Decided to upgrade to e-bikes as well. In hind sight, worked through the 5 questions before seeing them, but it is “reassuring” that it supports our decision! Thank you!
Thanks for the post. I’ve definitely realized that the things that got many of us to the point of retiring early are the same habits that will make us to spend money in retirement. As a life-long frugal person, I know this will be a challenge for the rest of my life. Having booked trips to France, Greece, Croatia, Slovenia, and Portugal this year, I’m working on it 😉
I’m 68. Middle class retirees. Pension income. No LTC. Own my home. Save half of my retirement income each month, and still live comfortably, buying as I like for all the little things. One son who is out of touch with us, so must think of being totally self-sufficient. I think the questions are good. But, my parent-passed-along Depression Era frugal habits are important to maintain when the spectre of possible LTC needs are there. In 20-30 years, LTC costs, which are $100,000/year+ now, could be almost double that. I’m all for researching and buying quality for a bigger purchase, but I don’t need the #1 choice, whether it’s bikes, cars, furniture, etc.
Wendy, no doubt, the fear of LTC is valid. Unfortunately, it’s an “unknowable” for all of us. No doubt one of the challenging things limiting our ability to spend in retirement is all of the unknown numbers in the equations. Like most things in life, it’s a balancing act. Thanks for stopping by.
Hallo Fritz,
Thank you for your post! Before retiring, I was a compulsive buyer and then after retiring my priorities changed radically.
Now I feel guilty whenever I spend too much for something I like. So from now onwards, I will take into account the 5 questions you are suggesting, and avoid unpleasant feelings.
Thanks for sharing your useful advice!
PS. Amazing bike!
Michaela, thanks for your continued loyalty to my blog (I’m enjoying yours, as well). I think many of us “feel guilty,” so I’m hoping the questions will help others in addition to you. We’ve worked a life time to get here, it’s time to figure out how to enjoy life without regrets.
I’m 61 and retired. Just bought my first new car in 20 years…..a Tesla Model Y. Paid cash. After driving it home- my guilt of such a large purchase evaporated quickly. It is hard to “turn on the faucet” of spending but I’m letting it flow and enjoying life. Great article Fritz. Mike
You and Mr. Money Mustache! At least you’re in good company! Enjoy that Tesla, proud of you for turning on that faucet…
Great post. However, I think you should get in the habit giving to yourself well before retirement.
True story: Several decades ago (1981), I had returned from travel abroad and I was telling my mother what gifts I had brought home and for whom. She asked, “What did you get for yourself?” I was somewhat surprised at this question, and I answered honestly saying, “Nothing.”
She said, “You have to start spending money on yourself.” I responded, “NOW you tell me?” She said, “Yes. I can’t change but you can. Do you know I almost died (she had had heart bypass surgery) and never had a color TV. Do you have a color TV?”
I responded in the negative. She said, “Well, you should get one.” Then, she called my father over and told him to write a check for me to make that purchase.
Eipilogue: I bought the TV and I took her words to heart. I started treating myself better. And a funny thing happened. I began to be more generous with others as well. My life is better than it would be otherwise.
Great story from a great friend. Thanks for stopping by, Ed. Looking forward to our next lunch! I appreciate your mentorship, and pleased to see you sharing your wisdom with all of my readers, as well.
Fritz: I LOVE the questions to help make rational decisions! Just took a screenshot and have it ion my phone. Thanks for helping us live “much richer lives”.
My words, immortalized in a screenshot. What more could a writer ask for? 😉
Fritz-
Big fan here!!! Loved the article, it really hit home for me as well. Retired early at 54 last year, and was looking for a fun 2nd car to enjoy Spring/Summertime here in Atlanta. Even without the benefit of your article, I thankfully asked myself a lot of the same questions, and after much agonizing over the course of several weeks, I ended up “going big” and custom-ordering the much more expensive convertible. Probably the dumbest thing I’ve ever done (from a strictly financial standpoint), but it remains my favorite purchase of all time. Makes me smile every time I sit in it. Love love love it and am so glad I got it.
Thanks for all great content!!!
You’ll have to drive that fancy new convertible 100 miles North sometime and let me buy you a coffee (hey, you’ve earned that with your “Big Fan” comment!). You’d LOVE driving it on our mountain roads. Hope to meet you (and the car) soon.
Thanks Fritz, my wife and phased into retirement, with 2023 being the first year with $0 job income. Living purely on savings until social security kicks in next year.
We were a one income family while raising our kids, so the habit to live frugally is deeply imbedded. But our financial plan shows that we can afford a few “luxuries” now. We set up a budget and loosely track spending each month. The purpose of the budget is not to reduce spending; it is to force me to see that it really is ok to spend the “travel and fun” line items on the budget. We took a nice cruise to Mexico in January and have booked another one to Canada in June.
Good for you for recognizing the importance of spending, and finding a way to “force me to see that it really is ok to spend.” Enjoy that Canadian cruise!
Hi Fritz. Enjoyed your article. As one of your readers noted, it’s good to get in the habit of spending before you retire. Prior to retirement, I have used a few of your questions along the way to guide my choices. As long as I was maxing out my 401-K, paid off my house, carried no debt, and paid for my kid’s college tuitions, I used extra yearly bonus funds to support expensive purchases (Bronco, Camera) and reasonable vacations along the way. As an example, since photography is one of my passions, I purchased pro-level camera and gear. As you guided us in your retirement book, buy our toys before we retire. 🙂 Since I’ve recently retired in December 2022, we have aimed to spend while we are in the “Go-Go” years.
Keep up the great writing about your experiences and sharing your wisdom!
Bruce, interesting that you mentioned the “prior to retirement” spending. I had thought about weaving that into the post (instead of using SWR, you could use your savings rate and feel comfortable spending above that level), but left it out due to length. Thanks for bringing it into the discussion, valuable point for those who haven’t yet retired.
Thanks for reading my book. The advice about buying your toys before you retire is solid. For some reason, it’s easier to make the big expenditures when you’re still earning an income. Worked well for me, glad to hear it worked for you, too. Enjoy that photography!
Great decision, great post. Number 3 is the biggest factor in my spending decisions. For instance, Tina and I take many excursions when we cruise. At the end of the day do you want to be the person spending 6k for a cruise but not be willing to spend $300 for a fun experience? Paraphrasing Crocodile Dundee asking the gang, next time someone asks you what you did last night do you want to say “nothing” or would you rather say “we stormed a castle?” As for me, I’d rather storm the castle!
You found an excursion that storms castles? Please share!! 😉
Thanks for stopping by, Gary. I appreciate your loyalty to my work (Freedom For Fido included, still blown away that you intentionally stopped by in Blue Ridge during your trip through the area to join Jackie and I on a build). A real life example of storming the castle, indeed.
Nice bike! Glad you decided on the eMTB. We moved to a hilly biking town in January 2023. We bought ebikes. We had the same debate you did on which bike to purchase. So glad we bought ebikes. It helps us go farther and gives just enough boost when we need it on hills so it doesn’t wipe out our bodies (54 and 52 yo). We can still go on hikes, play pickleball, basketball and other activities without days of rest between and popping ibuprofen.
Regarding the spending of money in retirement. We are retiring in June of 2024 and already trying to spend money. We just got back from celebrating 25 yr anniversary in Napa Wine Country. We took a couple of wine tours, olive oil tour, and massages; they all costs money. That was my first ever massage too. I was balking at the cost of tours and massages. Finally, it was like why are you so worried about the cost? We have been through a lot in 25 years, just like everybody else, and we can do this. We had fun on the tours and loved the massage. Would I do the tours again? Probably not, but we did them. Massage? Oh heck yeah, sign me up. Ha ha.
Relating to your previous postings, only got one life to experience all you can. You have the financial means, go and enjoy it while you can.
Had to laugh at your “without days of rest and popping ibuprofen.” One of the things I love about the new bike is how I can enjoy a great ride in the woods and still do “normal” activities for the rest of the day. e-Bikes are the fountain of youth!
Congrats on your 25th anniversary (Napa, great choice) and your upcoming retirement. Glad to hear you found the courage to spend on your celebration. The memories, I’m sure, are priceless.
Go and enjoy it while you can, indeed.
That’s awesome, Fritz, and I gotta say, I’m a little jealous! 😉 I’ve been eyeing up the electric bikes a bit lately and will probably make that my next bike. My bike is pretty old… like probably around 25 years old. It still does the job though so I’m going to stick with it right now. But I have a feeling that I’ll be joining you at some point in getting one.
For us, we don’t have as much breathing room in early retirement so I think we need to be a little more cautious when making larger purchases (question #1 in your list). But it’s not like we can’t do it either – we just can’t spend willy-nilly either. So maybe down the line, I’ll come visit with my electric bike when I get one and we can go for a fun ride together! 🙂
Jim, great to hear from you. At least you and Lisa finally took a weekend escape together. THAT was a spending decision that added value to your life experience. Would love to have you come down when you finally take the plunge on the e-MTB. The trails around here are simply amazing. Hope to see you soon!
Fritz, I can so relate to this! A few years ago I started piano lessons, knowing that some day I wanted a baby grand sitting in my living room, if the many hours of practicing paid off for me. So, after months of research, hunting and comparison shopping, I found a gem- (and paid about 50% of its value, due to it being on consignment and a motivated-by-cash owner!) and I got a grand piano, to boot! I can’t tell you the joy I have every time I lift that keyboard cover and begin to play. While it was agony to justify the expense, I have never regretted the purchase. The 5 questions would have been nice then- and a great reminder of how we make our choices for this stage of the game now. Thank you for this article!
Your comment is music to my ears. Wink. Enjoy that baby grand!
Great post once again, Fritz. Thanks for sharing.
I did this recently with an espresso machine. Toiled, researched, debated, all those things. I pulled the plug knowing buying good quality would allow me to keep the machine for the rest of my life. I have enjoyed it every day when I make my cappuccino! Haven’t hit the start line yet, but within the two year mark now. Hoping the market recovers some and I avoid the downturn in our first couple years of retirement.
Thanks again for all you do to bring relevant topics to our attention with good, sound advice on how to approach things like this. Be well and bike on!
Just think about how much you’re saving making those cappuccino’s at home instead of buying them at Starbucks. Best payback ever! Best of luck as you approach The Starting Line!
Always hard to switch to the spend side. these are very good points to keep in mind.
My wife and I haven’t ridden bikes in years but at the ages of 67 and 68 we are picking up a couple of Trek hybrid bikes tomorrow from a bike shop a couple of hours away. Our area has no bike shops, cause it’s rural Arkansas. We expressly did not want e-bikes though, we are both runners and competitive tennis players and want biking to be as much work as possible. But that’s just a personal choice, I can see the appeal of e-bikes especially on challenging terrain. But we are not going to do anything that is challenging, just street bike trails and flat bike trails through parks and the like. And hills don’t exist in our part of the state though we will be riding some on our travels. Today I had sea salt on my grocery list but when I got ready to pick it up I thought to myself. All salt is from the sea, or from an ancient one, so that’s just a rip off and I didn’t get it. Yes I have a few million dollars invested but that’s not a reason to buy something unless it adds to your life. On the bikes we did not get the cheapest option but we did stay on the low end of the range because as beginners that’s a good place to start.
Steve, good thinking on whether the additional value of the e- would be worth it for the riding you intend to do. If it weren’t for these darned hills around here, I’d be with you (have to laugh when my Florida friends justify e-bikes “because of the wind”). Smiles.
Uncanny! I am exactly where you were at present. Two bicycles, similar, but one much more expensive, but also probably much better quality even though perhaps a little overpriced. I have been agonising for weeks about which one to buy. I will take the decision tomorrow. Thank you very much for this.
Tomorrow has come and gone. I’m dying to know…which one did you buy? Amazing timing!
I bought the cheaper one! I am British and over here we have a category of bike known as a light tourer. One of my retirement activities is doing 30 mile plus day rides with a group of friends twice a week. This is a wonderful retirement activity that provides fitness and a social life. After studying the reviews of two leading bikes capable of doing this I decided that the more expensive one did not add enough value to justify this. I greatly value your emphasis on generosity and spending in retirement though. I hope that I have made the right decision! Thank you for your blog. It is a great help.
Good article Fritz, direct and spot on. I’m in the same camp, tough to spend guilt free after saving for 50 years.
Congratulations on the bike, it’s super nice. We purchased e-bikes last spring, best move ever! I researched it for a year, maybe more, and I laugh at the amount of money I spent, but they have really enhanced the adventure of trail riding for us.
Keep up the great work, thoroughly enjoy your work as always, thank you.
Like so many things, 31, it seems we agree on this one. Thanks again for your continuing loyalty in reading every one of my posts. Much appreciated!
Fritz, thats a nice set of wheels! Great summation about liberating yourself to spend money. It is hard, when you’ve been in the mindset of accumulation for so long, to then do the complete opposite, when you conceivably have less money coming in. It will be scary for me, I know it. But like you said, there is no use in being the richest guy in the graveyard. Congrats on your new ride!
Isn’t interesting how many of the personal finance/RE blogs are mentioning the aspect of spending money instead of frugality? Even MMM has chimed in on his blog about buying a Tesla. Years ago, when his blog was in its nascent stage, he removed a comment I wrote or something to that effect, and I think it was because of a picture I posted of a motorcycle I bought.
Yes, times change. I often wondered if his divorce centered around his starting to give away $100K/year. Probably TMI, you’re welcome to delete my comment too, I’m used to it now.
I don’t think I’ve ever deleted a comment, Mike. I’m a believer in free speech! Yeah, ironic that MMM just bought a Tesla. I imagine that went over like a lead balloon with his notoriously frugal following. Goes to show…many of us end up realizing in retirement that’s it time to learn to spend. It doesn’t really matter what others think, we each have to live our own lives.
This is a great post! Retired 2 months ago at 57. We’ve always been savers and spending in retirement is harder than I thought it would be. Your 5 questions on purchases is very helpful. However I am always looking for the best deal!
The other decision I struggle with is trading time for money. Saving money by doing it ourselves versus hiring someone to do it. Especially when it come to home projects. Thanks for all your past articles preparing us for retirements!
Pleased to hear the post resonated with you, Chris. Congrats on crossing The Starting Line, I hope you enjoy your retired years as much as I’m enjoying mine. Good addition on the “time for money” equation, that’s also an area where we’ve started leaning toward spending money to gain time. Similar mindset to giving yourself permission to spend if the value is worth the expense.
If you are counting every penny coming in, you will count every penny coming out!
It is depending how long you have done this “counting” act. It will become your second nature.
Although, I am the bread winner for the family…
I am so glad to have my wife does the penny “counting”…
And I get to chase the “shiny object”.
Fritz, you still have time, shift that responsibility to your wife, she built for it!
You’re assuming I have the ability to “shift” – you’ve clearly never negotiated with my wife. Wink. Seriously, we’ve split the financial responsibilities this way: She manages all of the bill paying, I manage the investments. She knows what I’m doing, and I know what she’s doing. There is value in having the other partner in a relationship understand things, still an area I’d like to work on in more detail (perhaps a future post?)
Um…. that sentence you wrote: “I hate bonking.”
‘Bonking’ in Australia = doing the horizontal tango/bumping the uglies/ rooting/sexual intercourse.
Between bonking and rooting, the way your slang works is very strange to our ears.
Haha!
Frogdancer!! It’s been a while, and you couldn’t have made a grander re-entrance. Too funny about the meaning of “bonking” in Australia, glad I put that link into the post so folks knew what I meant!
7 bikes hanging in the garage, including one new add to the stable this spring. Feeling way less guilty now! Seriously Fritz, a great article on a topic most folks won’t understand until they experience it – so tough to switch over to a spending mindset. 3.5 years into retirement and we aren’t there yet but openly talking to ourselves about the need to ramp up before it’s too late to enjoy it.
7 Bikes!! You’re putting me to shame, Kirk. Love the photos you share of all of your adventures on Instagram, and recall fondly our time together on Lake Michigan. Thanks for stopping by.
Fritz,
Egotistically speaking, can you work on your timing? I went through the same process in March, x 2 eBikes. Made the same decision. We don’t regret the decision in the slightest!!! Not sure question 5 is relevant, depending on the answers to the other 4, but thanks for at least validating our decision/purchase. We to opted for peddle assist, no throttle. BTW we love the electric assistance as we’re now 70, but I’ll reserve any comments about your age as we don’t get off paved paths much and certainly don’t get into the type of terrain you must be riding. Be sure to read the Owner’s Manual as our’s contained some good advice about braking distances and the speed at which electric assist bikes offer and the requirement for more attention to detail while riding. Safety statistics say far more accidents and more injurious accidents happen on electric assist bikes. Be Careful & Have Fun!
Thanks for the warning, KC. That’s one thing the bike shop mentioned, along with the advice to make sure you’re in a low gear when you start, otherwise the acceleration can be a bit startling. You’re my new role model, I hope I’m still enjoying my e-bike when I’m your age. Enjoy!
Good article and I love the questions. What I find are the nickel and dime purchases that add up over time. This where I need to watch my spending. I am good with the splurge. My wife passed away a year before I retired and I bought a new MTB and gravel bike…riding helped me get fit again and deal with my grief. I bought simple e-bike just for fun and recently bought a high end recumbent because of issues with my hands and neck. I wish I had owned and ridden a recumbent long ago. Less stress on sensitive areas and I don’t feel all beat up after a ride.
Enjoy the new ride and keep on posting!
Dom, so sorry to hear about your wife, what a terrible thing to go through on the cusp of retirement. Glad riding has helped you heal, hope you’re enjoying that recumbent bike! I’ve always been intrigued by them, but the narrow and curvy roads in my neck of the woods are far too dangerous for street riding…
Thanks Fritz! I’m definitely going to buy the latest greatest Dyson cordless vacuum for Gus’s hair! 😁
Betty!! Great to see you commenting on here. I think Gus deserves that – I love that dog! Thanks for the marvelous dinner and conversation last week – hope to see you at tomorrow’s Fido build.
Great post. Im a little over a year into an early retirement and haven’t spent any of the nest egg. That said I did broach the subject with the wife about taking a big trip, not our typical national park trip but something international. My wife is a bit of a homebody so this is going to take some work.
Btw, Mr Money Mustache just bought a Tesla! That post was a good read . Never thought id see the day.
Yeah, I had to smile when I saw MMM’s post. I didn’t realize he was reading my stuff, glad to see I convinced him to turn on the faucet. Wink. Good luck negotiating with the wife, the compromise could center around the duration of said trip. Good luck!
Nice article and even a better choice on the e- mountain bike!
Buy once, cry once!
BTW, I bought the more expensive Blue 70 open water wet suit.
Retired on 4/28. This one is going to stick.
Love your new steed Fritz! Your post resonates with me. I too struggle over spending that feels on the surface to be extravagant or somehow inappropriate. In fact I’ve wrestled over a new mt bike purchase for the past few years as well. My current bike is 23 years old (and I too have aged 🙂 Your 5 questions are very helpful.
Part of the struggle has also been some unexpected expenses post retirement supporting family (college tuition for our only niece, supporting my elderly mother). Investing in family is a priority. So it’s a balancing act on investing in myself and other important people and charities. also using the spending threshold to ensure a prudent financial decision. That said the emotional aspect of a purchase still plays a big role and hurdle to overcome. My wife has been helpful in pushing me sometimes to invest more in myself.
Thanks for the post!