Does Frugal Living Ever Change in Retirement?

[Chuckanut]

We are spending our money and don’t care about leaving our kids inheritances. We helped our kids when they were young and needed it.

I think that is a wise plan myself. I am helping my children as I can so that they will not need an inheritance in their 60's to be able to retire. They will inherit whatever is left over.

 

[Chuckanut]

While I have very frugal Scottish genes, I feel $2600 spent on California wine grapes and $800 on a French oak barrel was an extremely cheap deal. However, I'm sure that there are those that think it was an extravagant foolish expenditure and question my sanity and good sense. I will most likely spend the same amount next year although I don't need another barrel, 4 is enough.

What? No investments on aging Scotch Whiskey?

 

[Tree-dweller]

I don't mind spending money but I look for a good value but am willing to pay more for quality or convenience.

I’ll spend the money now for quality or convenience, but do I mind it....? Maybe a teensy bit. A couple years back I replaced our Elantra with a (used) Lexus. A definite not-like-me splurge, but it turned out to be the most comfortable, reliable car I’ve ever owned. Still surprised that I spent the dough on a car, though. Just have to remind myself that the kids are through college, the house is paid off, and we’re no spring chickens, but I’m still gonna wait til the Wednesday over-60 discount at Kohl’s to buy that shirt.

 

[robnplunder]

+1 for being less frugal after retirement. My accumulation days are over and it is time to enjoy life. I have enough money to last my remaining life and then some (to leave it to my only child). No point being as frugal as before.

 

[Sunset]

This always has been my philosophy. You quickly forget how little you paid for something when it turns out to be crap.

Yes but you remember forever how MUCH you paid for something if it turns out to be crap too

 

[Sunset]

There is a difference between being frugal through deprivation and simply spending for good value. I like the good value part. I don't see a reason to change. Being retired we have more time to price shop and optimize expenses.

+1
I think of getting good value or being frugal as simply smarter shopping. Any fool can through down a thick wad of money to buy something, but the person who can get the same thing for less money is being smarter.

We were just on a Viking Ocean cruise a few months ago, while sitting talking, found out the fellow beside me was made, as he had paid $2,000 more for the same trip as us, at same stateroom level. All the while, he had been assured he was getting the best price possible by the cruise line.

 

[brucethebroker]

There is a difference between being frugal through deprivation and simply spending for good value. I like the good value part. I don't see a reason to change. Being retired we have more time to price shop and optimize expenses.

Well stated.

I think getting the best price for the best value is being money smart, not frugal. To me, frugal implies a certain sacrifice in life style to save money/survive. Being a smart shopper-ie: saving money on one thing and using that savings to treat yourself on another area is just good "business".

The opposite of being frugal should not have to be living the life of a spendthrift. It could be as simple as not sweating spending a little extra money now and then.

 

[daylatedollarshort]

+1
I think of getting good value or being frugal as simply smarter shopping. Any fool can through down a thick wad of money to buy something, but the person who can get the same thing for less money is being smarter.

We were just on a Viking Ocean cruise a few months ago, while sitting talking, found out the fellow beside me was made, as he had paid $2,000 more for the same trip as us, at same stateroom level. All the while, he had been assured he was getting the best price possible by the cruise line.

Right, it can be more than double the fun of paying full price. You had the enjoyment of the Viking Cruise, you had the fun of finding the bargain price and you can apply the $2K you saved on another cruise or some other bargain adventure.

 

[Scuba]

I’m with others who will pay for quality and convenience but want good value. I think we’re all more frugal in some areas vs others. We spend a lot on high-end groceries, dining out and travel because we enjoy these things. However we buy clothes at Target and Kohl’s and drive 12 year old cars with 160K and 130K miles on them. All a matter of priorities.

 

[Midpack]

I’ve also struggled with this since I retired over 7 years ago. On paper we could spend more than twice as much as we do, fortunately we’re comfortable just spending modestly. I tell myself we need to be conservative to make sure our money lasts if (FIRECALC) history does NOT repeat, and then we’ll spend more later in retirement - though I realize by then we will probably be so limited physically we can’t enjoy the extra spending. Catch-22? That’s exactly what happened to my Dad, he was only spending about 20% of his income for the last 10+ years if his life - sad. It’s a good question I don’t have an answer for either...

I don’t mind spending money, but I hate wasting money. So I too am always looking for good value, so I’m selectively frugal? And we keep things we buy longer than most people; cars, appliances, consumer electronics, clothes, sports gear, pretty much everything.

However, I also think this is another ER question that yields different answers for SIRE vs FIRE retirees. The more SIRE you are, the less need to LBYM?

 

[CRLLS]

OP here. Some interesting responses so far. Without tallying all of them, I think it turns out to be about 50/50. I believe that I'll am destined to be frugal, or LBY, or modest, whatever we want to call it, for the rest of my time here on earth. Not that that is a bad thing. We are still as comfortable if not more so than we were most of our lives. Only now we have a bit more financial security. That's a good thing. I simply hate spending more for things than I need to. I do find satisfaction when I've done my best to at least investigate lower priced sources whether it is a $10 item or a $10,000 item. I hardly ever look back and kick myself if I find a better deal afterwards. I did the best I could at the time.

Others have made it to the other side. Not me I think. My thoughts and actions along these lines may change with time. It is in my DNA I think. I'm in full retirement for only 1 year now. I still have time to grow into it.

 

[RAE]

I still like getting good value for my money.

It takes time to change, but after a while one starts to realize that time really is much more valuable than money.

+1 to what Chuckanut said. I will always look for good value in anything I'm considering buying, as I don't like being taken advantage of. On the other hand, I am not averse to putting out a significant chunk of $$ for something that is a priority for us (like our annual winter snowbird trip south). And the older I get, the more I realize that time is the most precious commodity one has, not money. It's unlikely that I will run out of money anytime soon, but you never know when your time might be up.

 

[imoldernu]

Could have, (maybe have) written a book about frugality. To sum it up... Two cars... total 40+ years old. Could easily buy a new Mercedes @ 45+K. But why? Total miles per year are less than 2000 now.

30 years retired... We are happy with what we have. Our lifestyle is just a habit, and not likely to change.

 

[mystang52]

There's always a fine balance between LBYM, frugality, and enjoying the fruits of a lifetime of saving for retirement. I don't think I waster money, per se, but I do freely spend according to our budget.
In my running heyday, I often flew to other states just to run a Half Marathon. I only run short distances now so no need to do that anymore. But I am an avid Bridge player. I spend in the area of $200 per month to play. Does that mean I'm not frugal? No, it means I am spending money I can afford on one of my leisure pursuits. NOT spending that, just to hoard my money, would be acting like a cheapskate.

 

[John Galt III]

Slightly less frugal. I paid $585 to have a fuel pump replaced in my GTA instead of doing it myself. Mixed feelings about it at the time.

 

[garyt]

I'm retiring in May. I suspect I'll be conservative for the first couple years to ward off sequence of returns risk. But once I get that out of my head ( assuming a big drop doesn't make it a reality) I plan to spend like crazy. But it will be more travel, play more expensive golf courses, nicer resorts. I don't have any interest in a more expensive car just because it's a better "name", or a bigger house, etc.

 

[Dawg52]

It was a lunch, but with my wife and beer and wine were also enjoyed.

For 2 and good drinks I can see that. I was thinking in terms of my little world of one. Plus where I live prices are a lot less than in CA. Wasn't being critical of you btw.

 

[Jerry1]

This reminds me of DW and our trips to Chicago. DW is the more frugal one in the relationship. But, as others have said, she’ll buy what she wants, but she’ll spend whatever time necessary to make sure she’s getting the best price she can. Definitely goes for high value at best cost. Has the patience of Jobe. If she wants a new lens for her camera, it could take her six months to pull the trigger. Me, when I want something, I’ll shop and try to get a good price (I’m certainly not a foolish shopper), but for something I really want, I’m getting the best price I can find that day. I might wait for Black Friday if I’m in early November, but patience is not one of my virtues.

So back to Chicago. As much as me and DW have enjoyed our trips there, it’s a complete nonstarter for DW. She enjoys the shopping (looking but not buying), but she would never buy something there. She would not enjoy buying her new fabulous lens there only to know she could get it for less in other ways or another time. Thankfully, there are some really great restaurants there and she’s always seemed to enjoy them even though I’m sure at some point she’s thinking that she could have eaten a steak for much less somewhere else.

This hasn’t and will not change with retirement. No matter how I show her that we’re fine, she definitely has a fear of running out of money.

 

[Ronstar]

I don’t think that my level of frugality has changed much since retiring. Working was good for trying to be frugal - it was tough to spend money at work. But I can spend 24/7/365 now in retirement. And being frugal never crosses my mind when spending on hobbies or travel. Unfortunately.

 

[pacergal]

We have a yearly "budget" that is higher than when we were working. I still comparison shop but I am not afraid to spend money on things we find value in, such as flying first class on longer flights.
I don't fear spending money, I know what I have budgeted for the year. If I spend it all, fine. If I have some left, that's OK too.

 

[MarieIG]

I see nothing wrong with shopping for the best value, and expect I will become more frugal in retirement in some ways, not less, as I will have time to "shop around" which I don't have now. We also plan to move out of state due in part to the HCOL and taxes in our area.

For example, we have to plan our current trips to visit our children around our work schedule, and end up paying high rates for travel. When we retire, we will look for better prices. Paying less for a trip, means more trips. That doesn't mean we won't spend money to make the trip more pleasant.

For OP, you are pricing out Alaskan cruises: not eating ramen noodles for dinner instead of chicken to save money, so I really wouldn't stress about it.

 

[Rianne]

Frugal living comes naturally for us. We like cooking at home, we have no need to buy new clothes (our old clothes are in style). Kids love antique stores, old furniture, second hand shops, it's in fashion right now. Baggy non fitting clothes, the big thing. I have nieces and nephews in their early 20's. They're cool, smart, up on trends.

This gives wiggle room for a great getaway or quality upgrading on our house. I dislike cheap maintenance or a cheap re model. And even though our cars are old, they are classic Toyota Camry's. A lady in our grocery store parking lot had a 2018 Camry (because I asked her). It looked very much like my 2004 Camry, same color and very close same design. Mine doesn't have the bells and whistles inside the car.
I guess it's what is valuable to you. We pay $75/month for fitness membership, but it has an awesome therapy pool with all the best equipment. It's super clean and well cared for. The front desk staff have been there for years.
We pay for cable/3 TV's with movie, Netflix, Prime etc as a choice for quality entertainment at home. But I get free books from the library.
Our expenses are @ $60K/year, but we live very well.

 

[Another Reader]

I think a lot has to do with your experiences as a child with financial insecurity. If you had a parent out of a job for an extended period, the income providing parent became disabled or died, or there was a divorce that left the custodial parent broke, you probably experienced a lot of anxiety about money. It's very hard to overcome that kind of experience. The fear of running out of money motivates you to have a bigger cushion and a fear of spending.

On the other hand, if you had parents that always emphasized having safe and steady employment, never took any risks with their money, and thought it wrong to spend any more than you needed, you probably ended up with the same cushion and fear of spending.

Then there was my friend whose brother in law dropped dead of a heart attack at 35. His parents were of the safety over all else belief. Dad worked at one bank for 40 years. This guy was in his 20's and vowed that he would die without one penny left in his pocket. He spent the next 50 years spending everything he earned or could borrow. Drove fancy cars, owned and flew a plane, vacationed at the best resorts, and had a life that was one big party. In this case, a natural tendency and a life-altering event overcame the parental example.

 

[audreyh1]

The older I get, the more I find I am willing to spend. Especially if personal comfort and convenience is involved.

 

[Chuckanut]

I don’t mind spending money, but I hate wasting money.

+1 Bingo!

My old grandpappy used to say he would rather spend $1 for a cigar he enjoyed than 25¢ for one he didn't.