So, you’ve been saving money for a while now and that’s great, but maybe you’re starting to feel like you’re missing out in life. You might be asking yourself at what age you should stop saving money and start enjoying it? It’s a good question. Here are some answers for you.
At What Age Should You Stop Saving Money and Start Enjoying It
When it comes to retirement savings, it feels like you can never have enough.
While that is kind of true, the day comes that you need to stop worrying about saving money and start spending some of that hard-earned money that you have been saving all these years.
However, there are a few considerations to take into account before you make this change.
Do you still have a lot of credit card debt, or student loans (hopefully not!) then you should put off starting to spend until you get these paid off.
If you have been saving for retirement but having been paying off your debt, now is the time to do so.
Without this debt hanging over your head, you will be able to live on a lot less money.
That way if you have any unexpected expenses later on, you will have the cash reserves to pay for them.
Your Living Expenses
Before you stop saving and start spending you need to take a close look at your living expenses.
Will your retirement income, including your social security, pensions, or other passive income, cover all of your monthly expenses now and in the future taking into consideration inflation?
Are you out of debt?
Do you have an emergency fund?
If so, then you are in good shape.
If you find that your investments and other income will not cover your expenses in retirement, then you will need to keep saving and investing or make a plan to reduce those expenses such as moving to a less expensive area.
What age you will be able to comfortably retire and stop saving money will depend on your situation.
Some can retire in their 50s and be fine. Others will have to wait until the 60s or 70s.
Part of that decision will be based on your financial goals and how much you have managed to save and invest over the years.
You’re Retired, So Now What?
So, you have flipped the switch from saving to spending, but is it really that easy?
Many people that have been making retirement contributions and saving money for years find it difficult to stop saving.
As they say, old habits can be hard to break.
Is that such a bad thing?
It might be…
If you want to enjoy your retirement, then you need to let go of your fear that you don’t have enough money to cover your golden years.
By not allowing yourself to enjoy your personal life you can actually create health issues.
Of course, if you are part of the 46 percent of people in the United States that haven’t saved enough money for retirement then you won’t have to worry about becoming a spender.
Keep in mind, if you spend your retirement worried about your financial life, it can lead to anxiety, stress, and sleeplessness.
All three can damage your health.
If you spend too much time worrying about what might happen, you will not have enough time to enjoy what could happen if you allowed it to.
This can be especially hard on you if you are skipping healthy foods to save money and cutting out healthcare visits.
Think about what you will miss if you stay in savings mode and don’t make the transition to spending mode such as traveling, spending time with the grandkids, and enjoying other activities.
Wanting to Save Money for the Kids
You might have a number in your mind of what you want to leave your children.
It’s generous of you, but you should put yourself first.
You’ve worked hard your whole life to be able to have the extra cash in your retirement to enjoy your life, and you should do so.
Your health and happiness need to be a priority at this time of your life.
What you leave your children should be secondary.
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Worried You Won’t Have Enough Money
It makes sense that you would be concerned about this, but if you have worked it out and you can pay for your everyday expenses and healthcare and all the rest, then you don’t want to live in fear.
Fear will cloud your judgment and ruin your retirement.
Keep in mind, when you retire a lot of the expenses you have now will be gone.
You don’t have to drive to work, park, or pay for lunch.
You don’t have to buy work clothes.
You don’t have to save for retirement.
Chances are your house is paid off.
So, you will need less money to live well than you did when you were still working.
Also, just because you may have to take out the minimum distributions from your retirement accounts doesn’t mean you have to spend them.
You could even reinvest them if you would like.
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To Sum it All Up:
It can be scary to make the jump from saver to spender, but if you have your debts paid off and your savings and social security can pay for your expenses and give you a comfortable retirement then it is time to stop saving and start to live the dream retirement you’ve always wanted.