The Two Types of Money People
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.
Weekend Reading
Ever dreamt of retiring early with a healthy nest egg, only to find yourself hesitant to actually enjoy it? It's a common struggle for those who've spent a lifetime prioritizing saving.
READ THE ARTICLEThis phenomenon isn't just anecdotal – research confirms that many retirees underspend, even when they have ample resources.
Two Psychological Types:
- Tightwads: Experience too much pain when spending and thus spend less than they would like.
- Spendthrifts: Experience too little pain when spending and thus spend more than they would ideally like.
Studies, such as those from New York Life and BlackRock, show that a significant number of retirees do not withdraw regularly from their portfolios, preferring to reduce costs instead.
Why It Matters: Retirement is a reward for a lifetime of hard work. By adopting a more balanced approach to spending, you can create a retirement that's both financially secure and deeply satisfying. Allow yourself to spend on things that enhance your life and well-being, whether it's a new home, travel, or experiences.