When in retirement, there is a big difference between splurging on nice things occasionally and outright wasting your money on things you won’t use. However, many retirees confuse the two and start saving like Scrooge while refusing to spend any money on themselves unless it’s a necessity. In fact, 25 percent of people decrease their spending in retirement, even when they are financially well-off.
When to Splurge on Items in Retirement
Retirement doesn’t need to be a time of ultra-conservative spending. Here are some of the best reasons to splurge.1) The Best Technology Costs More
Depending on what you’ve chosen to do with your time in retirement, you might find yourself looking at various forms of technology, wondering if you need all these gadgets or if you can get by with cheap options (or skip it altogether).For example, if you’ve got a hobby that requires using a laptop or smartphone, you might wonder if you should get the new iPhone models. However, new iPhones are expensive. Granted, you can get a strong case for your iPhone to protect it from drops and shocks, but you’ll still need to shell out around $1,000 to get one.
In the grand scheme of things, $1,000 is a good deal when it gets you a device you can use for many years. Apple is known for offering operating system updates for around eight years, and you can still use your phone after that.
2) You Should Feel Comfortable in Your Home
When you’re retired, you’ll probably spend a lot of time at home. Comfortable furniture is one of the best ways to spend money because feeling good physically can make you feel good emotionally.Go through your home room-by-room to honestly assess the furniture, starting with your bedroom. Is your bed comfortable? Do you get a good night’s sleep? You could just need a mattress topper, but if your bed is already in bad shape; a topper won’t help much.
3) Your Happiness Is Worth Spending Money on
According to research data, 63 percent of happy retirees pursue hobbies. It would appear that there is a direct connection between pursuing interests and a person’s level of satisfaction with life. Since retirement gives you more free time, you can pursue any hobby you want. Therefore, you’re not limited by what you can work around a job. In other words, retirement gives you the ultimate freedom to do what you love. So, there’s no reason to deny yourself what makes you happy.4) Experiences Create Memories
Money can’t buy happiness, but it can buy experiences that create unforgettable memories you’ll cherish forever. For example, maybe you enjoy taking your grandkids to amusement parks or the movies. Perhaps you like going to car shows or attending cat conventions.5) When Your Bills Are Covered, Why Not?
If splurging on things beyond your basic needs won’t hurt you financially, why not spend your money on things that make you happy?6) Good Food Is Money Well Spent
Eating at restaurants is one of the best ways to spend your money because you get a good meal and an excellent opportunity to connect with friends and family over a shared meal. The average American (not necessarily retired) spends around $3,639 per year eating out. If you stopped eating out so often in retirement to save money, it’s worth revisiting your stance.Food is a special type of experience that brings people together. However, when you visit an amazing restaurant, the food itself becomes the focal point. According to science, it may just be a chemical reaction, but food can make you happy by boosting serotonin and dopamine. Many healthy foods, like kombucha, yogurt, dark chocolate, berries, and fatty fish, can boost your mood significantly.
Remember the last time you went to a nice restaurant and were elated just being served long before you took your first bite? You can get good food anywhere, just like hanging out with people you love at any time. However, the combination of company and good food is somehow magical.
7) You Can Balance Spending With Bequeathing Your Money
Maybe you’re saving every penny to ensure your family is cared for. This is a noble gesture, but you don’t have to deprive yourself of everything just to care for others. Leaving money to your kids can be a source of arguments, and they may waste it anyway. You can leave plenty of things to your kids that they’ll want to inherit, including cash. However, if you have more than one beneficiary, things can get pretty chaotic over a cash inheritance that isn’t split evenly.8) Spend Some of Your Money and Enjoy Yourself
If you don’t want or need anything extra while in retirement, that’s perfectly okay. Not everyone will want things that cost money. Some people are perfectly content to live a simple life: there’s nothing wrong with that. However, don’t avoid spending money just because you’re in the habit of hoarding your cash or because you’re afraid you’ll spend it all and won’t be able to meet your needs. As long as you account for the money you spend and ensure it’s truly extra, you don’t have anything to worry about.How Much Should You Splurge During Retirement?
The amount of money you have to splurge on yourself and your loved ones can be determined with an honest assessment of your financial situation. If your current spending habits meet your basic needs and give you plenty to save, you probably have more money to spend than you think. If you’re struggling, you likely need to plan ahead for big purchases. But they shouldn’t be entirely out of the question.Start tracking your current spending and compare it to your income to see what you have to spare. If your savings account or net worth increases regularly, you have at least some room to splurge on things outside of your basic needs. Plenty of things can make your life even better in retirement. This can include things like tech gadgets, appliances, comfortable furniture, great food, and experiences out in the world.
Don’t spend all of your retirement in a Scrooge mindset, unwilling to part with your money. Money is meant to be spent. It’s just a tool and a medium of exchange. If you don’t currently have extras factored into your monthly budget, make some adjustments and start buying those things you want and need to enjoy your life in retirement.
