Transitioning to Spender from Saver in Retirement

The best way to transition from saver to spender in retirement is to practice spending in the years leading up to retirement.

### Transitioning from Saver to Spender in Retirement
* 💰  Transitioning from saving to spending in retirement can be challenging after years of **financial discipline**.
* 🚗 " I like for folks to **start test driving retirement** before they get to retirement.
* 🧮  The first step is to "**do the math**" to set spending guardrails and regularly update your financial plan.
* 💭  The second step is to "get outside of the math" and consider your **life goals and values beyond just financial numbers**.
* 👨‍👩‍👧‍👦 " Your kids and grandkids will have no trouble spending this money, so you might as well be purposeful with **every day and every dollar** that comes your way.

[Music] We're going to move on to Chris's question. Are you ready? Yes, ma'am. It says, What's the best way to transition from spender or to spender from saver? Sorry, got that backwards. There's not a problem in America where we have trouble transitioning from spender to saver. I feel like that is that we are just the opposite of that. Okay, I'm going to start that over. He said, What's the best way to transition to spender from saver in retirement? I know that's something that I'm going to struggle with, so he's looking ahead. What type of mindset shift or advice do you have for him as he thinks about that? Well, you're not alone in this, Cur, because one of the difficulties that we see with financial mutants all the time is that all you're asked to do is exercise discipline for your entire working life and save money from the time that you start working all the way until the time you start working, and then magically you're supposed to be able to flip a

switch and be able to start spending that money. It's a hard thing to do. You have to kind of rail against something that you've likely spent 20, 30, 40 plus years mastering, and so it does become difficult. Now your actual question, it sounds like, was what's the best way to transition, and what I generally counsel people who are at Financial Independence or at retirement or nearing retirement is one of the best things I think you can do is begin to test, test drive what it looks like, begin to figure out, okay, what, especially if you've been saving, you've accumulated your number, you know that, you know that, you know you're where you're supposed to be. I like for folks to start test driving retirement before they get to retirement. Yes, some of that is figuring out, do I actually like golf, is pickleball a sport that I really want to do, um, is travel something that gets me excited? Well, in that same vein, am I going to be okay spending money, is it okay for me to start spending more money immediately prior to retirement so

that I can begin to see what that feels like, and how I feel about it, because what's beautiful is if you can go from the Working World, establish the lifestyle you want to live, let work fall off, and maintain that lifestyle. It's just a much more seamless solution. So I think the best way to transition is to practice doing it in the few years leading up to retirement. So I wrote down two things. These are going to seem like common sense, but I don't think people actually do it. First, do the math, meaning that you've got to find that when Spenders. I mean Savers. I'm making the same mistake that Reby just did. When Savers transitioning into Spenders, we've spent 30 years building these resources, and it's just hard to change those good habits that we've been rewarded with. So first, do the math to figure out so you know where the guard rails are. So you know, hey, what can I spend per year, and then update that every year. There's nothing wrong with

this is exactly what we do for a lot of clients. Is we just do check-in stress test to see, hey, can we increase the spending? Do we need to cut back? Where are we at with this? So do the math. You got to know where the guard rails are. Second thing you need to do, get outside of the math because I want you. You got to do the math. Everybody in personal finance does the math for you because they're like, hey, if you just save up $3 million or $3.5 million, you'll be great. No, that's the math. Now we got to get outside of the math because you want. What is you have to ask yourself? What is my best life? What are my why? What are the goals? How do I maximize each decade that I'm on this planet? That's not going to be math-based. That's look. Math is going to be a component to it, but you got to start thinking about how you're going to spend this money because when you get to the reality of success and you realize, hey, you can't take it with

you so how do we navigate this well. I think you'll start figuring out hey maybe it's okay that this is where I'm spending more on the memories. I'm spending more on education for loved ones and all those positive things. And then here's something that will be a little bit of cold water to kind of keep you going. It's just like you know if you're ever training for something if you don't have a little fear in there. I feel like that that you lose some motivation but this if I give you this statement this will be the cold water you can remind yourself or the smelling salts. Uh to to kick you back into gear your kids and grandkids will have no trouble spending this money. So you go ahead since you were the Builder of this let's go ahead and begin with the end in mind and start thinking about what's the best way to use this money with your fingers in the dough of life to to to maximize this opportunity because kids grandkids will have no trouble spending.

this money um so you might as well be purposeful with every day and every dollar that comes your way

What Is the Best Way to Transition from Saver to Spender?

Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

Subscribe today to stay up to date with our latest episodes, livestreams, and highlight videos: https://www.youtube.com/c/MoneyGuyShow?sub_confirmation=1

Are you ready to go beyond common sense when it comes to your money? Check out all the free resources The Money Guy Show provides: https://moneyguy.com/resources/



The Money Guy Show

Transitioning from Saver to Spender in Retirement

Many people struggle with shifting from saving money to spending in retirement, after a lifetime of discipline.

One piece of advice is to test drive retirement before actually retiring, to explore and get comfortable with the idea of spending money.

This can involve trying out different activities and gradually increasing spending as a way to ease into the transition.

It's important to practice transitioning from saving to spending in the years leading up to retirement.

Doing the math to determine spending limits and regularly updating it is crucial for a seamless transition.

Beyond the financial aspect, it's also important to consider lifestyle goals and how to make the most of retirement years.

Navigating the Financial Commitment of Education for Loved Ones

It's important to see the increased spending on education as an investment in positive memories and opportunities for loved ones.

However, it's also crucial to be mindful of the financial impact and to plan wisely for the future.

Keeping in mind that the funds will benefit future generations can provide motivation to make the most of this financial commitment.

Being purposeful with your money is crucial for making the most of it.

Every dollar should be managed with mindfulness and intention to achieve financial goals.

It's important to make thoughtful decisions about spending and saving to ensure a secure financial future.