Weekend Reading: How to Get Clients to Spend More Money

This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
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Weekend Reading

You spent decades stockpiling savings for retirement. After years of frugality and budgeting, however, flipping the switch to then spend those hard-earned dollars isn’t for the faint of (penny pinching) hearts.


The frugal effect: As it turns out, the frugal side of you is actually wired in your brain. A behavioral scientist named Scott Rick composed a study on spendthrifts versus tightwads, and found frugal-minded individuals showed pain-induced brain activity when having to make a purchase, while spendthrifts did not.

License to spend: To shift your feelings about spending, a Wharton School professor named Cait Lamerton suggests categorizing expenditures in the form of Maslow’s Hierarchy (seen in this article), and reframing expenditures as investments in your health and well-being – or, as a reward for a job well done.

Further, this article lists several other methods of shedding your frugal-ness, such as: Use plastic rather than cash, get a screaming deal when you do indulge, pledge to make a purchase by a certain date, and most importantly, create a guaranteed cash flow floor as a license to spend.

You saved throughout your entire life for a reason and a big part of that must have been to enjoy it; however, without a spending strategy, you may never realize the full potential of your life savings.