You think you’ll spend like this…
But instead, you spend like this…
Retirement planning experts who’ve studied this phenomenon say that we spend in three phases…
- the go-go years,
- the slow-go years,
- and the no-go-years.
The go-go years are your first several years in retirement. You play, you travel, you spend.
Then you start to slow down. Your spending hence naturally declines.
And then you really slow down. But your spending rises as you start to spend more on healthcare.
So, if you planned to spend like you thought you’ll spend, you can afford to spend more.
Because the money you don’t spend in the early years, compounds and it’ll compound for decades into a tidy little sum. Not the worst of things but in case you care.
But all in all, I don’t like this word called retirement. I like financial independence more – independence to do the best work of your life while you keep yourself engaged, active and relevant.
I mean don’t quit working but quit the work that looks like work. And mix in those well-deserved breaks from time to time. Travel, explore, discover.
That is the way to do it. That is the way I’ll do it.
Thank you for your time.
Cover image credit – Kat Smith, Pexels