When does saving money mentality change in retirement?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
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flyingaway
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When does saving money mentality change in retirement?

Post by flyingaway »

I just retired for about two months. In my free time these days, I find that I am very keen in looking for items on sale at grocery stores, applying for reward credit cards, and looking for travel deals.

I know that I have enough money and I don't need to do these money saving things. In fact, I am now questioning my decision to retire so early. If I could work for another year, I would make more money than all of the above mentioned savings in the remaining life of my retirement. That really makes me worry and nervous.

So, retirees, when do you start not to worry about your money and start to spend your money without hesitation? You know that you have enough money, but when do you act like that you have enough money?
Swimmer
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Re: When does saving money mentality change in retirement?

Post by Swimmer »

I’ve been retired 11 years. I don’t worry about money, but at the same time, I don’t spend it without hesitation, either. I think thrifty habits are ingrained. When I want to buy something, I give myself time to decide whether I really want it. I like online shopping because I put what I think I want in the shopping cart and return in a couple days to review it. I often splurge but only after careful thought.
sport
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Re: When does saving money mentality change in retirement?

Post by sport »

It's a personal thing. There are a things I do not buy, that I can easily afford, just because I do not feel they are worth the price. Perhaps I am being foolish. However, one of the reasons I have been able to reach the point where I can afford those things is by being careful how I spent my money. So, it can be a mind set. I think of the old quote: "How do you think a man like me got to be a man like me?"
sailaway
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Re: When does saving money mentality change in retirement?

Post by sailaway »

I hope I never start to spend my money without hesitation, that would be wasteful.

If you are spending your free time looking for deals, that is, you don't need groceries, but you are looking for deals, or spending time looking for the best travel deals rather than where you actually want to go, that may be a mental health issue and could even result in overspending. If you are spending more time shopping than you would if you just grabbed anything, that is likely just good stewardship of your resources.

Perhaps start looking for a new hobby, even if it has some costs involved, so that you have a productive use of your free time?
sc9182
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Re: When does saving money mentality change in retirement?

Post by sc9182 »

OMY syndrome / wishful-thinking in works :happy

As one approaches retirement (readiness / age)., OMY (one more year) would result in significant portfolio growth (due to compounding on large portfolio size), portfolio resilience (continued contributions, optionality of continued working if market tanks), one year less of withdrawals. Each year one continues to work - more magic happens (to portfolio growth and it’s resilience). It’s OK to establish a baseline period/year of costs of your lifestyle needs during that initial period - develop some idea on costs involved— nothing wrong with that !

At the end, you have to weigh - how much to grow portfolio Vs. Move-on with life/health/retirement! Don’t think there is perfect answer/balance - to each its own.

Not only at retirement., even when one makes a big decision or large-purchase (home, luxury vehicle etc) — one continues to question/validate/evaluate ongoing costs, benefits, and/or second guess (as a counterfactual) - this happens for some period of time. That’s how it is ..
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HomerJ
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Re: When does saving money mentality change in retirement?

Post by HomerJ »

My wife looks for deals, and she will never stop looking for deals.

Even if I worked an extra 3 years and said, "Look at all this extra money..."

She would still look for deals.

And I like that about her.
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BogleFan510
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Re: When does saving money mentality change in retirement?

Post by BogleFan510 »

flyingaway wrote: Sat Oct 23, 2021 10:54 am ...
So, retirees, when do you start not to worry about your money and start to spend your money without hesitation? You know that you have enough money, but when do you act like that you have enough money?
Spending behaviors generally dont change. Welcome to the 'asset accumulating low consumption' club.

That said, less consumption is generally better for the environment and can be a healthy way to live. Consider strategically giving, once your patterns and needs clarify what is genuinely surplus, assuming a sufficient safety net for a serious medical or other missfortune.
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Re: When does saving money mentality change in retirement?

Post by RadAudit »

flyingaway wrote: Sat Oct 23, 2021 10:54 am You know that you have enough money, but when do you act like that you have enough money?
BogleFan510 wrote: Sat Oct 23, 2021 11:44 am Spending behaviors generally don't change. Welcome to the 'asset accumulating low consumption' club.
+1

OTOH, for me, long about 75 or so and a few health problems, I came to understand I probably wouldn't live forever around here. So I started to do a little math. How much for DW, for the kids, how much to give away and to whom or what. How much to keep for just in case ... Why? Because there are really only three things you can do with money. You can spend it. Your inheritors can spend it. Or the government can spend it. You get to choose the spenders.
FI is the best revenge. LBYM. Invest the rest. Stay the course. Die anyway. - PS: The cavalry isn't coming, kids. You are on your own.
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arcticpineapplecorp.
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Re: When does saving money mentality change in retirement?

Post by arcticpineapplecorp. »

if you spend carefully, think about how much money you'll have left over to donate to charity and or leave to family and friends?

similarly, if you shop smart on certain items think how much more other things you'll be able to buy now!
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Swimmer
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Re: When does saving money mentality change in retirement?

Post by Swimmer »

RadAudit wrote: Sat Oct 23, 2021 12:08 pm
flyingaway wrote: Sat Oct 23, 2021 10:54 am You know that you have enough money, but when do you act like that you have enough money?
BogleFan510 wrote: Sat Oct 23, 2021 11:44 am Spending behaviors generally don't change. Welcome to the 'asset accumulating low consumption' club.
+1

OTOH, for me, long about 75 or so and a few health problems, I came to understand I probably wouldn't live forever around here. So I started to do a little math. How much for DW, for the kids, how much to give away and to whom or what. How much to keep for just in case ... Why? Because there are really only three things you can do with money. You can spend it. Your inheritors can spend it. Or the government can spend it. You get to choose the spenders.
Love this philosophy. I’ve been trying to convince DH of this.
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Re: When does saving money mentality change in retirement?

Post by Shallowpockets »

OP, you want to know when that will happen? It will happen farther out time than your 2 month retirement you have now. Sure, you could go back to work and earn more than the money you are trying to save, but some time you will retire anyway and face the same questions. Once you get out a year or two you won't think about it anymore, unless your financial prep for retirement was off.
A year or two out, your chances of reentering the work force will be harder, and probably you will think it ludicrous to do so anyway. If you look at your retirement assets and see they have risen appreciably you will think, why work , my money is working for me. It is glorious to see your money do what you once had to slave for.
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flyingaway
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Re: When does saving money mentality change in retirement?

Post by flyingaway »

Shallowpockets wrote: Sat Oct 23, 2021 12:21 pm OP, you want to know when that will happen? It will happen farther out time than your 2 month retirement you have now. Sure, you could go back to work and earn more than the money you are trying to save, but some time you will retire anyway and face the same questions. Once you get out a year or two you won't think about it anymore, unless your financial prep for retirement was off.
A year or two out, your chances of reentering the work force will be harder, and probably you will think it ludicrous to do so anyway. If you look at your retirement assets and see they have risen appreciably you will think, why work , my money is working for me. It is glorious to see your money do what you once had to slave for.
No, I will not go back to work. In fact, I have purposely throwed away and deleted all my research materials, teaching materials, publications, contact information, campus computer accounts, etc. I physically burned my bridge and cut myself off from my previous work life.
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beyou
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Re: When does saving money mentality change in retirement?

Post by beyou »

flyingaway wrote: Sat Oct 23, 2021 12:30 pm
Shallowpockets wrote: Sat Oct 23, 2021 12:21 pm OP, you want to know when that will happen? It will happen farther out time than your 2 month retirement you have now. Sure, you could go back to work and earn more than the money you are trying to save, but some time you will retire anyway and face the same questions. Once you get out a year or two you won't think about it anymore, unless your financial prep for retirement was off.
A year or two out, your chances of reentering the work force will be harder, and probably you will think it ludicrous to do so anyway. If you look at your retirement assets and see they have risen appreciably you will think, why work , my money is working for me. It is glorious to see your money do what you once had to slave for.
No, I will not go back to work. In fact, I have purposely throwed away and deleted all my research materials, teaching materials, publications, contact information, campus computer accounts, etc. I physically burned my bridge and cut myself off from my previous work life.
I am struggling with this now.
Close to retiring, timing related to company relo.
People keep assuming I would like to work without relocating and either considering spots for me locally or just asking “what will you do (professionally) next?”. I want to retire but have a hard time telling people, partly because it makes me feel older, and mostly out of fear of burning those bridges that I MAY want to cross.
shunkman
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Re: When does saving money mentality change in retirement?

Post by shunkman »

My brother with essentially zero savings was complaining to me recently that the organic butter he normally buys at Wegmans has gone up in price and is now $8.00/pound. I think the butter that I buy at Aldi is $1.99/pound. I have been retired for about three years and I don't ever plan to start spending $8 for butter even though I could easily afford to do so.
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Will do good
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Re: When does saving money mentality change in retirement?

Post by Will do good »

RadAudit wrote: Sat Oct 23, 2021 12:08 pm
flyingaway wrote: Sat Oct 23, 2021 10:54 am You know that you have enough money, but when do you act like that you have enough money?
BogleFan510 wrote: Sat Oct 23, 2021 11:44 am Spending behaviors generally don't change. Welcome to the 'asset accumulating low consumption' club.
+1

OTOH, for me, long about 75 or so and a few health problems, I came to understand I probably wouldn't live forever around here. So I started to do a little math. How much for DW, for the kids, how much to give away and to whom or what. How much to keep for just in case ... Why? Because there are really only three things you can do with money. You can spend it. Your inheritors can spend it. Or the government can spend it. You get to choose the spenders.
I like your thinking, I'm working on myself to embrace it. Thanks!
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Re: When does saving money mentality change in retirement?

Post by delamer »

Spending without hesitation is not a goal that any of us should strive to achieve.

There always is an opportunity cost to spending. Any dollar that you spend on Y could have been spend on X instead.

The idea is to spend according to your priorities.

My guess is that most people who post on this forum would call personal finance and investing a hobby, to some degree or another. Nothing wrong with spending time on your hobby by looking for deals. The downside is if you refuse to spend without the deal, even if you can afford to do so.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
lws
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Re: When does saving money mentality change in retirement?

Post by lws »

Welcome to the club. Don't fight it. Habits die hard.
Enjoy your retirement.
Barsoom
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Re: When does saving money mentality change in retirement?

Post by Barsoom »

For me, it wasn't about spending recklessly, but about upscaling the things I do spend my money on.

-B
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Re: When does saving money mentality change in retirement?

Post by CZjc1330 »

Good question. Great responses.

Yep, most of us "got financially comfortable" by minding our expenses. Not that we didn't splurge once in a while -- and that's OK.
Hard to change lifelong habits that brought you FI. AND why shld you?
I retain many habits that helped me arrive at FI. Think twice about expensive decisions -- but proceed if you really want to.

Splurging on yourself and loved ones occasionally is more than OK -- it should be a priority.
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Re: When does saving money mentality change in retirement?

Post by MJS »

flyingaway wrote: Sat Oct 23, 2021 10:54 am I just retired for about two months. In my free time these days, I find that I am very keen in looking for items on sale at grocery stores, applying for reward credit cards, and looking for travel deals.
Actually, these are perfectly good hobbies. Take an active delight in them! Set up spreadsheets to record your wins, read frugal blogs, record YouTube videos. There are even conferences, local groups, and classes. Enjoy them purposefully.

But if they're not fun, then ... then you need new hobbies.
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Re: When does saving money mentality change in retirement?

Post by Fallible »

BogleFan510 wrote: Sat Oct 23, 2021 11:44 am
flyingaway wrote: Sat Oct 23, 2021 10:54 am ...
So, retirees, when do you start not to worry about your money and start to spend your money without hesitation? You know that you have enough money, but when do you act like that you have enough money?
Spending behaviors generally dont change. Welcome to the 'asset accumulating low consumption' club.

That said, less consumption is generally better for the environment and can be a healthy way to live. Consider strategically giving, once your patterns and needs clarify what is genuinely surplus, assuming a sufficient safety net for a serious medical or other missfortune.
I think the above (I bolded) basically describes how my spending changed very little in retirement (forever frugal here) as I eased from full- to part-time work, then to full retirement. It can take some time to "clarify" those patterns and needs and learn what is "genuinely surplus." But, hey, TIME is exactly what you now have and rather than worry about spending adjustments, you can be trying out new interests or whatever you want to do with that time.
"Yes, investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense." ~Jack Bogle
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Re: When does saving money mentality change in retirement?

Post by reisner »

I don't like having a lot of stuff. If I want something and think I'll use it, I buy it. If I don't think I'll use it, I resist. On top of that, the habit of looking for bargains will never die. eBay, I'm talking about you. I have noticed certain luxury brands hold their valuee; certin others, just as good, don't. Therein are the best bargains, like a $130 Faherty shirt for $22. I feel responsible for what I buy, and resort to eBay again if I find I'm not using something.

We don't stint on food, and become more generous with charities by the year.
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Re: When does saving money mentality change in retirement?

Post by squirm »

The retirees I know, pretty much said when they realize life is more about helping others and not focusing on the money aspect.
Swimmer
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Re: When does saving money mentality change in retirement?

Post by Swimmer »

MJS wrote: Sat Oct 23, 2021 1:28 pm
flyingaway wrote: Sat Oct 23, 2021 10:54 am I just retired for about two months. In my free time these days, I find that I am very keen in looking for items on sale at grocery stores, applying for reward credit cards, and looking for travel deals.
Actually, these are perfectly good hobbies. Take an active delight in them! Set up spreadsheets to record your wins, read frugal blogs, record YouTube videos. There are even conferences, local groups, and classes. Enjoy them purposefully.

But if they're not fun, then ... then you need new hobbies.

In addition to hobbies, consider volunteer opportunities. I’ve found immense pleasure and new friendships in volunteering. I work on a project to provide new pajamas and books to homeless children, a church thrift store, gardening clinics, and Seniors Vs Crime. So many people/organizations can benefit from your talents. It’s soooo much better than a job and very rewarding.
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Re: When does saving money mentality change in retirement?

Post by Broken Man 1999 »

When DW and I were in our accumulation years we always paid ourselves first, all savings removed automatically from paycheck, and the mortgage as well.

Leftover bills were easily addressed, and we knew we could safely spend the remainder on our wants.

We basically lived paycheck to paycheck.

SS benefits pay about 50% of our monthly expenses, our TIRAs distributions cover the rest.

Given the market over these last years, we have spent about the same on regular expenses, but have done several one-of projects shining up the old casa.

With the exception of a new roof in the next couple of years, our one-of projects are at the end game this year. Only project left is refinishing our dining room furniture, the pieces were all picked up yesterday. Should be returned by end of year.

Because of Mr Market's generousity, we have been able to up our giving to family members and favorite charities.

And, I treated myself to a 77inch OLED TV. Just because I wanted one! Felt good!

Broken Man 1999
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Doom&Gloom
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Re: When does saving money mentality change in retirement?

Post by Doom&Gloom »

In some situations I have started intentionally reminding myself that I'll never live long enough to spend all of my savings. The two examples that jump out at me are wine and coffee purchases. I sometimes also do this in restaurants as well. So far I have refrained from consciously doing that with big ticket items, but that may happen down the road as time runs shorter--and hopefully investments continue to grow.

As others have said, old habits die hard. I'm not trying to break this one but perhaps bending it occasionally in increments is reasonable.
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Re: When does saving money mentality change in retirement?

Post by Cheez-It Guy »

Just because you have enough money doesn't mean you need to start wasting it. The habits that built the bankroll are solid enough to maintain indefinitely.
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Re: When does saving money mentality change in retirement?

Post by CletusCaddy »

BogleFan510 wrote: Sat Oct 23, 2021 11:44 am
flyingaway wrote: Sat Oct 23, 2021 10:54 am ...
So, retirees, when do you start not to worry about your money and start to spend your money without hesitation? You know that you have enough money, but when do you act like that you have enough money?
Spending behaviors generally dont change. Welcome to the 'asset accumulating low consumption' club.

That said, less consumption is generally better for the environment and can be a healthy way to live. Consider strategically giving, once your patterns and needs clarify what is genuinely surplus, assuming a sufficient safety net for a serious medical or other missfortune.
“Asset accumulating low consuming yet constantly worrying club”
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dodecahedron
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Re: When does saving money mentality change in retirement?

Post by dodecahedron »

HomerJ wrote: Sat Oct 23, 2021 11:41 am My wife looks for deals, and she will never stop looking for deals.

Even if I worked an extra 3 years and said, "Look at all this extra money..."

She would still look for deals.

And I like that about her.
Indeed, look at all the retired bogleheads waiting for deals on HR Block tax software (every year!)
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Re: When does saving money mentality change in retirement?

Post by BogleFan510 »

Another point to add, is that we can start to 'invest' in anxiety reductions like the decision our team made to sell a very well performing rental property. We accellerated a significant capital gain and gave up a great protected tax basis attached to stable cash flows for eliminating the hassle of tenants, the possible liability risks of a property, etc. Likewise, if one has more than enough, a lower equity % is also a bit of a 'luxury.'

P.S. Re:above, Im not constantly worrying. What was that about?
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Re: When does saving money mentality change in retirement?

Post by retire2022 »

flyingaway wrote: Sat Oct 23, 2021 10:54 am I just retired for about two months. In my free time these days, I find that I am very keen in looking for items on sale at grocery stores, applying for reward credit cards, and looking for travel deals.

I know that I have enough money and I don't need to do these money saving things. In fact, I am now questioning my decision to retire so early. If I could work for another year, I would make more money than all of the above mentioned savings in the remaining life of my retirement. That really makes me worry and nervous.

So, retirees, when do you start not to worry about your money and start to spend your money without hesitation? You know that you have enough money, but when do you act like that you have enough money?
Me too, same boat retired Aug 2021.

Mr tightwad got me covered and my portfolio could go from 2.6 million to 8 million by the time RMD rolls around.

Of course it would push my tax rate up, uncle sam will get his way sooner or later. Lol
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Re: When does saving money mentality change in retirement?

Post by Bluce »

flyingaway wrote: Sat Oct 23, 2021 10:54 am I just retired for about two months. In my free time these days, I find that I am very keen in looking for items on sale at grocery stores, applying for reward credit cards, and looking for travel deals.

I know that I have enough money and I don't need to do these money saving things. In fact, I am now questioning my decision to retire so early. If I could work for another year, I would make more money than all of the above mentioned savings in the remaining life of my retirement. That really makes me worry and nervous.

So, retirees, when do you start not to worry about your money and start to spend your money without hesitation? You know that you have enough money, but when do you act like that you have enough money?
I have no idea. I was self-employed, forced to quit in April (severe arthritis) and haven't withdrawn a penny yet from my SEP-IRA (I was 71 in August). About a month ago I changed all my holdings to stop re-investing everything so it would go to cash -- but I just reversed that today. Not accumulating makes me nervous.

I have no answers. It is ridiculously difficult to switch from accumulating to spending. And I can live fine just off divvies and interest but I can't even manage to do that. Since April I've been living on SS and from stuff I've sold, and I have spent several thou on car and truck repairs, tires, etc. from my MM account which I will have to replenish at some point. So I can't go on like that forever.

I guess I could have worse problems.
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Re: When does saving money mentality change in retirement?

Post by cchrissyy »

Coupons and travel deals are legitimate hobbies, keep doing them if you enjoy it the same way other people like their crossword puzzles.
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Re: When does saving money mentality change in retirement?

Post by Bogle7 »

Let me help you.
Set $17 as the minimum price for a bottle of wine.
Resolve to drink 1 per day
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RedDog
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Re: When does saving money mentality change in retirement?

Post by RedDog »

One shouldn’t confuse worrying about money and paying attention to money. :sharebeer
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Re: When does saving money mentality change in retirement?

Post by eddot98 »

We have 2 cars. After I was laid off from my almost 10 year long part time job at the end of 2019, we rarely use the second car - a 2012 Camry LE with 38,000 miles, bought in early 2015. Our daily driver is a 2016 Lexus es350 with 80,000 miles, bought in early 2019. The only reason that we have the Lexus is that we wanted another similarly equipped Camry, trading in our 2011 XLE with a V6, and in dash GPS, and a sunroof. Our used car dealer searches for anything that we might want off lease, usually 3 years old with 20,000 miles or less. He was having a hard time finding a Camry in early 2019 that fit the bill, but did find the Lexus. So, we ponyed up for the Lexus, paying $25,000 plus the 2011 Camry with 140,000 miles. I look at the 2012 Camry and vacillate between trading it for a 3 year old off lease Camry XSE (or Avalon, etc) equipped as the Lexus and saying to myself “Are you crazy, you have a perfectly good second car that you really don’t even need?”
To top it off, we needed gas the other day and we stopped at the Mobil station at the south end of town and got 14 gallons of gas. The next 2 stations we passed it was 5 cents cheaper per gallon and then the one after that was 10 cents cheaper per gallon. Wasting that $1.40 really bothered me.
So, what does that say about me?
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Re: When does saving money mentality change in retirement?

Post by Bluce »

Bogle7 wrote: Sat Oct 23, 2021 8:44 pm Let me help you.
Set $17 as the minimum price for a bottle of wine.
Resolve to drink 1 per day
I spend a LOT on liquor, lol, although I rarely go to bars since Covid, I just drink at home mostly.

When the diners opened back up in June 2020, I started paying for $10 - $12 lunches with a twenty, and leaving the rest for the hard working waitresses -- and a few chased me down in the parking lot thinking I had forgotten my change, lol.

Since around January I shaved the tips back to a flat five bucks. It just makes me feel good, and I wish I could do more for those less fortunate than I. A couple of Saturdays ago I paid for an $11 breakfast with a twenty, and left the rest for "her," a good friend who can use it.

Life is fun, then you get old and everything hurts or stops working, then you croak. :shock:
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Re: When does saving money mentality change in retirement?

Post by Wanderingwheelz »

Increasing your equity allocation by 5% and leaving it there forever should render any and all penny pinching unnecessary. There’s no way you can bargain shop at the grocery store, play with credit card points and squeeze the last $200 out of vacations and come out ahead when compared to what dialing up your equity allocation will do throughout your retirement.
Being wrong compounds forever.
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Re: When does saving money mentality change in retirement?

Post by pizzy »

I don’t think it matters how much you spend on SOME things as long as you have an understanding of how much you can spend on ALL things.

Similar to you can buy anything you want, but not everything you want.
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Re: When does saving money mentality change in retirement?

Post by Bogle7 »

Wanderingwheelz wrote: Sat Oct 23, 2021 10:00 pmwhen compared to what dialing up your equity allocation will do throughout your retirement.
+1
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Re: When does saving money mentality change in retirement?

Post by heyyou »

After acquiring our savings by not spending the money, we retired 16 years ago. Now I am still waiting for my thriftiness to subside and for the asset level to fall below the retirement day amount. I hope that by using the RMD spending method that I will come around to spending all of each future annual WD since that method is based on the remaining portfolio value. I think of that data point as an exceptionally good, way marker for permission to spend all of the annual withdrawal. I haven't accomplished that yet, but I hope to achieve that level of spending.
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flyingaway
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Re: When does saving money mentality change in retirement?

Post by flyingaway »

Wanderingwheelz wrote: Sat Oct 23, 2021 10:00 pm Increasing your equity allocation by 5% and leaving it there forever should render any and all penny pinching unnecessary. There’s no way you can bargain shop at the grocery store, play with credit card points and squeeze the last $200 out of vacations and come out ahead when compared to what dialing up your equity allocation will do throughout your retirement.
Nobody worries about that often-mentioned 50% drop in stock market?
fposte
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Re: When does saving money mentality change in retirement?

Post by fposte »

Having a pension undoubtedly helps here, but I haven’t found much trouble in spending money. I created a retirement budget, I’m well within it, and I have generally inexpensive tastes. Therefore I don’t pinch grocery pennies, but then I haven’t done that for a few years anyway. I think it may be a different challenge when I start doing (planned) house remodeling and international travel, but in the meantime I’m not going to sweat buying the pricey butter and spending more on museum entry.
retire2022
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Re: When does saving money mentality change in retirement?

Post by retire2022 »

flyingaway wrote: Sun Oct 24, 2021 12:00 am
Nobody worries about that often-mentioned 50% drop in stock market?
Crashes are good, it means I can buy more stock or equities at discount.

I have five years expenses (48k) of dry powder 240k and with 90/10 AA on a 2.6 million portfolio, with 66k pension and SSA projected payout when I need it at 70 at 38K.

Me don't worry. :)
Derpalator
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Re: When does saving money mentality change in retirement?

Post by Derpalator »

Wanderingwheelz wrote: Sat Oct 23, 2021 10:00 pm Increasing your equity allocation by 5% and leaving it there forever should render any and all penny pinching unnecessary. There’s no way you can bargain shop at the grocery store, play with credit card points and squeeze the last $200 out of vacations and come out ahead when compared to what dialing up your equity allocation will do throughout your retirement.
Thanks, Wanderingwheelz, this insight is definitely actionable and will be pointed out to DW immediately. :D
invest4
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Re: When does saving money mentality change in retirement?

Post by invest4 »

Swimmer wrote: Sat Oct 23, 2021 11:16 am I think thrifty habits are ingrained.
This. If you were already doing these things (likely for decades)...not sure why anyone would expect retirement to be significantly different?
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LiveSimple
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Re: When does saving money mentality change in retirement?

Post by LiveSimple »

dodecahedron wrote: Sat Oct 23, 2021 6:06 pm
HomerJ wrote: Sat Oct 23, 2021 11:41 am My wife looks for deals, and she will never stop looking for deals.

Even if I worked an extra 3 years and said, "Look at all this extra money..."

She would still look for deals.

And I like that about her.
Indeed, look at all the retired bogleheads waiting for deals on HR Block tax software (every year!)
Uhmmm… waiting for free Turbo Tax from Fidelity.
Invest when you have the money, sell when you need the money, for real life expenses...
SQRT
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Re: When does saving money mentality change in retirement?

Post by SQRT »

flyingaway wrote: Sat Oct 23, 2021 10:54 am
So, retirees, when do you start not to worry about your money and start to spend your money without hesitation? You know that you have enough money, but when do you act like that you have enough money?
I’ve been retired for 15 years. Your question is a good one but very personal. Transitioning from a “saving” mentality to a “spending” mentality is a challenge for many, perhaps most, retirees. It takes time. Start slowly. Maybe some things like an expensive trip, or expensive restaurants, or higher quality food, wine, or clothing. Hopefully you get more comfortable spending over time. I did.

As others have mentioned, a robust budget can help set your mind at ease. I use budgets and forecasts extensively and probably the best thing that comes out of that is a good understanding of what I can truly afford. I often “pad” my budget in an attempt to feel more at ease spending large amounts. If it’s in the budget, I can spend it.

After all you can only spend it or give it away, now or later.
Grasshopper
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Re: When does saving money mentality change in retirement?

Post by Grasshopper »

heyyou wrote: Sat Oct 23, 2021 10:30 pm After acquiring our savings by not spending the money, we retired 16 years ago. Now I am still waiting for my thriftiness to subside and for the asset level to fall below the retirement day amount. I hope that by using the RMD spending method that I will come around to spending all of each future annual WD since that method is based on the remaining portfolio value. I think of that data point as an exceptionally good, way marker for permission to spend all of the annual withdrawal. I haven't accomplished that yet, but I hope to achieve that level of spending.
This is us exactly including being retired 16 years (almost 17). I just hit 70 and so I planned years ago to spend all my RMDs and SS every year. I am now converting what would have been my tIRA to Roth IRA until the new age 72 start.

We were doing spendy traveling for about 10 years, since Covid none, so I still have dough piling up. :sharebeer
Wanderingwheelz
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Re: When does saving money mentality change in retirement?

Post by Wanderingwheelz »

flyingaway wrote: Sun Oct 24, 2021 12:00 am
Wanderingwheelz wrote: Sat Oct 23, 2021 10:00 pm Increasing your equity allocation by 5% and leaving it there forever should render any and all penny pinching unnecessary. There’s no way you can bargain shop at the grocery store, play with credit card points and squeeze the last $200 out of vacations and come out ahead when compared to what dialing up your equity allocation will do throughout your retirement.
Nobody worries about that often-mentioned 50% drop in stock market?
Do you think it’s going to matter whether your equity allocation is 60% or 65% when markets sell off my half?

If you do, then only increase your equity allocation by 2.5% and that still should be enough to render any and all penny pinching and game playing a giant waste of time. That is, assuming you have 30+ years to let the 2.5% compound which you do since you retired early. I’d still do the 5% though. That way instead of being a penny pincher you can become a person who routinely splurges.
Being wrong compounds forever.
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