I’m a Retirement Expert: Here Are 5 Frugal Habits You Can Quit If You’ve Saved Enough
Many people struggle to save enough money for retirement. There is a lot of advice out there on how to pinch every penny so that you can have enough for your golden years, but very little on what frugal habits you can stop once you’ve reached your goal.
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Once you’ve saved enough money for retirement and are living comfortably, consider some of your frugal habits and decide whether or not they are still serving you.
Keep reading as we explore some common habits people have that might be worth giving up once you’ve saved enough money for retirement.
Not Prioritizing Your Health
Frugal and healthy people may be tempted to forgo annual doctor appointments, health insurance, gym memberships or other health-related expenses to save money. However, your health is one thing that you shouldn’t sacrifice.
You should consider the cost-benefit of such decisions. Avoiding the doctor’s office because you don’t have suitable health insurance could become costlier in the long run. For example, if you have an unexpected health event and don’t have health insurance, you could end up with an extremely high medical bill — one that would be much larger than what you would have paid for your health insurance premiums. If you’ve already saved enough for retirement, it’s time to stop sacrificing your health and budget for quality health coverage.
“As we get older, I think one of the unavoidable risks is that our health declines,” said Gloria Garcia Cisneros, CFP®, wealth manager at LourdMurray. “Because of this, retirees should avoid being excessively frugal when it comes to healthcare. They may not need the coverage if they have healthy habits, but cutting corners on healthcare expenses can have serious consequences.”
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Not Buying Coffee or Eating Out
Spending a few dollars on a coffee from your favorite coffee shop will not break your budget as long as it’s within moderation. Yet many people skip buying coffee or eating out at a favorite restaurant in order to save money. Once you’ve saved enough for retirement, it is time to enjoy these smaller expenses if they bring you joy or make your life easier.
Depriving Yourself of Something You Really Want
Depriving yourself of something that you really want can backfire and be costly. Not only are you costing yourself happiness, but too much deprivation could lead to splurging later. By the time you’ve retired and feel comfortable financially, stop the deprivation mentality.
This can be hard for some people, especially if you’ve lived like this for years. Try making a list of the most important things to you, and pick one to spend money on that you previously wouldn’t.
Not Traveling Due to Money
Once you’ve hit your retirement savings goal, it’s time to visit family or take the vacation you’ve always dreamed about. Don’t wait until you are actually retired to take this step. You never know what life is going to throw at you. If you can afford to do so, you should travel now.
“Most have worked their whole lives and have only taken a few breaks to pause and travel,” Garcia Cisneros said. “The adjustment from working a full 40-hour workweek to not working at all takes a toll on people who aren’t used to having so much time. If someone is in sound financial shape and can afford to spend on experiences without putting their assets at risk, then I would say it’s time to start enjoying all the money they worked hard to accumulate. It’s time to travel and explore new hobbies with loved ones or alone.”
Habits That Cost More Time Than They’re Worth
Some people’s frugality requires extra time and effort. At a certain point, you need to decide if saving a few dollars is really worth the sacrifice. For example, you might visit two or three grocery stores to ensure you get the best prices on all your groceries, but this can be time-consuming.
The same could be said if you’ve been taking on most of the home improvement projects around your house. While it might have been easier to have someone else paint your home or replace your fence, you might have done these projects yourself to save money. At that point in your life, these tasks might have been worth the hassle, but now that you’ve reached your retirement goals, it’s time that could be better spent doing other things.
It can be difficult for some people to shift away from a highly frugal mindset, even when they no longer need to be that way. But at some point, you must look at your habits and decide whether they still serve you and your goals. Your priorities might have shifted now that you have saved enough money for retirement, which is OK.
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This article originally appeared on GOBankingRates.com: I’m a Retirement Expert: Here Are 5 Frugal Habits You Can Quit If You’ve Saved Enough
