Do You Have This Financial Problem – Not Spending Enough?
Category: Financial and taxes in retirement
October 12, 2025 — You probably know some well-off people who live well below their means .- we sure do. At the extreme end these folks won’t buy anything if it’s not on sale. They opt for the cheapest entree at a restaurant. And forget about business class tickets, even if it means sitting upright in the middle seat on a 16 hour flight to Australia. Although they have the retirement savings and other assets to buy anything they want without fear, have their home paid for, no debts, and children with successful careers, they just can’t stop acting like they have to live on a miser’s budget.
Running out of money is the biggest worry people usually have in retirement. Someone might have worked hard, but didn’t earn or save enough, or ran into family or financial trouble. The anxiety that someday they will have to survive just on their Social Security is real for them. But there are a surprising number of folks who are blessed to be in the opposite situation – despite their substantial assets they live well under their means. There are many reasons why they deny themselves the pleasure that their hard earned savings could bring. This article will explore some ideas on how to get over those fears and inertia.
Ideas to Help Get Over the Hump
Most baby boomers grew up with parents who lived through the depression of the 1930’s. That legacy often installed frugality as a key virtue. Don’t spend what you don’t have, shut off those lights, only buy what’s on sale, etc. For many, even those who have the money, it can be very hard to part with that deep rooted training.
For those fortunate enough to have sufficient resources to not have to worry about running out of money, here are some ideas to get over their fear of spending enough hump. After all, what is the point of scrimping just to admire the size of a bank account.
Comments on "Do You Have This Financial Problem – Not Spending Enough?"
Stevo says:
Growing up my family wasn't that well off but we had all the essentials to live a good life. Christmas was usually a modest toy or two and some clothing bought from the Sears catalogue. I started working at age 10 (mowing grass) to get my spending money and save for any big non-essential thing I wanted. After college my goal was to amass enough money to be financially secure as soon as possible and just kept going until I retired.
Over the years I found that I don't receive much personal gratification in buying "things" and when I buy it's because I need it. I shop for the best deal on a quality product, like a good bike, camping/hiking gear or nice vacation. I don't need to keep up with the Jones's, buy the latest fad or base my self worth on the car I drive, my house and the cloths I wear. I value giving my money and time to good causes and to the chagrin of my friends and family I always give panhandlers 5 or 10 dollars to spend as they wish. It's funny how what seems like a trivial amount can mean so much to someone.
The bottom line is, I don't need to spend a lot of money to be happy and maybe my nieces and nephews will be a little better off when my time is up...
AL says:
Enjoyed the article and mostly agree. However in the US healthcare is the wild card. Even if someone is worth a million in retirement, one serious illness or long term stay at a so called independent living facility, assisted living facility or nursing home can leave you broke well before you die. Still, we retirees have to make the most of the time we have left. After a lifetime of work and worry, striking the right balance between frugality and happiness is where we find ourselves.