Spending Mistakes in Retirement

We all talk to ourselves and sometimes even argue with our alter ego about all things past, present and future. This is where we end up making a lot of mistakes and important decisions that affect the rest of our retirement.

You hear a lot of talk from friends and colleagues about stuff like "Oh ya that's  on my bucket list".

What's on your bucket list?

Oh, that list about all the great places you are going to visit and explore when you're retired and have the time and money. You know the places you couldn't afford to go to when you were working. Maybe didn't have enough holiday time  to make it all work.

Well, the time has come and then you realize that you're too cheap to spend the money. You're as cheap as you were while you were working. You thought you'd change but parting with money is just not what you're good at. 

You want to travel but then you find out you're too cheap to spend and plan. Big Mistake!

There is always an excuse, flights are too expensive, I don't feel well etc. etc.

Time marches on and that so called list you spent hours building, just vanishes like the reputation of a sitting U.S. President.

Why does this Happen to us?

• you find that saving money was enjoyable but now you feel guilty spending it
• fear grips you as you remember the hard times and how hard it was to save
• you get scared into a false sense of belief the government changes will impact your money and plans
• you enjoy doing less expensive activities than working through that bucket list

Start doing some of the things you would never do. Do you now want to be Scrooge McDuck? or the biggest miser the family has ever known.

If you don't reward yourself now, then when?

Enjoy life, it's about more than just the spending.

Stay in Bucket List Mode

• travel business class for a change, treat yourself
• develop a much different relationship with your nest egg
• make an effort to pre-plan your vacations more than once in a year
• after your expenses are paid, splurge a little with the leftovers
• put your expenses on auto-pilot (automatic withdrawal)
• try harder to spend what's left at the end of the month

We are all different animals and have a different relationship with money. The thing we should all do is plot our own course on how to spend that hard saved cash in retirement.

I've only been retired about 18 months now and it gets easier every day. I really don't care about logging in every penny on expenses like we used to do. I was anal about that stuff. I knew every month what was going into savings and long term retirement accounts.

Now, once all the expenses have come out we pretty much spend the rest on the fun stuff which is defined differently for everybody.

For us it is trips to the granddaughters out West twice a year and at least an overseas junket once a year.

What is the sense of all that working with no fun stuff at the end?

Not going to happen to my retirement.

How are you going to spend money in retirement? Is it even worth thinking about?

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