Stuck in Savings Mode? How To Let Go and Enjoy Your Money Now That You’re Retired
Written by
Laura Bogart
Edited by
Kristen Mae
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Pinching every penny got you where you are today — enjoying a comfortable retirement. While some of your peers may be anxious about how they’ll stretch their dollars to make it to retirement, you’re fortunate to be sitting on enough cash to make your golden years pretty bright. If anything, you might even be in a position to spend a little more, to treat yourself to a nice meal out with friends or take that European vacation you’ve always dreamed of.
Retirement should be a time to relax. But if you find yourself stressed about spending even a modest amount on nonessentials, it may be time to reassess your relationship with money and develop strategies to part with those pennies. After all, this is what you worked for!
Reflect On Your Emotions Around Money
Believe it or not, your reluctance to spend in retirement may stem from childhood experiences. If you grew up in a household where money was scarce, you may have developed a powerful urge to hold on to what you have, lest you find yourself standing on the same financial ledge you walked as a child.
Conversely, if your parents were spendthrifts whose recklessness came with consequences, you may have veered in the opposite direction. But it’s important to remind yourself that your financial habits today don’t have to reflect your family’s financial mistakes.
Sit down with a mug of tea or your preferred beverage and journal out your feelings about money. If you’re haunted by thoughts like, “it’s wasteful to spend money on fun,” challenge them with positive affirmations, like: “I worked hard to build this nest egg and made wise investments to secure my income. I deserve to have fun.”
Put Fun In Your Budget
You’re a master at creating a budget, but have you set aside a little extra for fun? Adding a “fun money” category to your budget can encourage you to spend on activities like dining out once or even twice a month, vacations, or even new hobbies.
Think about the things you really want to experience and figure out how much they’ll cost. Break them down into your monthly expenses, while also planning larger goals, such as trips. Remember, taking a vacation doesn’t mean booking the most luxurious hotel (unless you want to) or paying for the priciest travel package. There are plenty of ways to travel on the cheap, from staying at an Airbnb to joining discount tour groups.
Review Your Portfolio
Like any financially savvy retiree, you’ve structured your retirement portfolio with a combination of 401(k)s, traditional and Roth IRAs, and other investments. But could you optimize it further? Absolutely.
Your investments aren’t locked in stone. Don’t be afraid to sit with a financial advisor and make adjustments to your portfolio to ensure that you have a steady income stream throughout your retirement. Also consider dividend stocks as part of your investment strategy. Dividend stocks offer recurring payments, typically every quarter, offering an extra layer of financial security.
Take on a Side Hustle
If you’re feeling financial pressure or simply want to expand your social circles and stay active while earning a few extra bucks, consider a part-time job or freelance gig that aligns with your interests.
Are you handy with tools? Try picking up shifts at your local Home Depot, Lowe’s, or even a mom-and-pop hardware store. Passionate about gardening? Your local nursery may need seasonal help. By finding an enjoyable side hustle, you can grow your “fun money” fund while staying socially and mentally engaged.
Retirement is about enjoying the life you’ve built for yourself. Don’t let old financial fears hold you back from living a little and making the most of your golden years.
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