How A Mini Retirement Taught Me About My Spending Habits
It was quite an eye opener.
Since I turned 45 a few years back, I have started looking into my finances seriously and planning for retirement.
The information I read online was overwhelming.
$1M? $2M? or $5M? Or with inflation, I will never have enough.
The thought scared me. And I became anxious about spending as I don’t want to be old, lonely and broke.
Have you ever thought about what your retirement life would look like? I’ve thought about it many times, but never really had a clear vision.
Am I going to be travelling all the time? But what if I don’t have the health to do so? And the money? My dad’s travel insurance cost nearly $3,000 for a six-week holiday.
And if I’m not travelling, what does my domestic life look like? How much will I spend?
This past week, I had a mini retirement experience.
And it costs money!
I took a week off before starting my new job next week.
This is how my week looked:
Monday - I did Pilates, had lunch and dinner at home
Tuesday - I drove to my new workplace to check on the rush hour traffic, grabbed a toastie and coffee on the way back. Then, a specialist medical check-up, lunch with a friend, and then a facial.
Wednesday - Wrote in the morning, went bouldering and did a big weekly grocery shop.
Thursday - Pilates again, lunch with my neighbour, then a massage.
Friday - Friend’s birthday lunch, bouldering again, then dinner party at her place. I bought gifts, a cake, a few tubs of ice cream and a bottle of wine for everyone to share. During the day, the same friend asked if I’d like to go to an NBA game in October so she can get tickets, and I said yes.
Saturday - Pilates, coffee with a friend after, lunch at an Indonesian restaurant I’ve been wanting to try, then spent the afternoon writing.
Sunday - Another birthday lunch and horse riding with the same friend (she’s celebrating the whole week). In the evening, I booked a yin yoga class to wind down.
I spent over a thousand dollars just doing somewhat normal activities.
Sure, maybe the birthday celebration was a one-off, and I don’t have facials, massages or specialist appontments every week — but as you can see, even without travel, I spent more than I expected. A little here, a little there, they add up.
I couldn’t help but feel a bit anxious.
Imagine if this is my retirement life, how do I fund it?
So, here’s how I try to manage my spending to make sure it doesn’t get out of hand - and if you’ve had a similar moment, I hope these help:
Mindset shift
Before feeling anxious about your spending, let’s take a deep breath. I’ve heard many retirees are afraid to spend money (I can see myself being one of them). But if you’ve been working hard to save, budget and invest, it’s okay to enjoy what you’ve built — just don’t overboard.
Make sure some money’s still coming in
This mini-retirement reinforced my belief in having extra income, especially income that works for you. While I was spending, I also had money coming in from my Medium writing, my small Etsy shop, and dividends from my investments. If you don’t have a second income yet, it’s time to start building one. Even a small, low-effort stream (such as dividend investing) gives you more breathing space.
Set up a guilt-free fund
This isn’t your emergency fund. I have multiple savings accounts, including one called my “Self Care” fund. I top it up each month, so when I splurge, it’s from money I planned to spend. This account is getting more important, especially if you want to pamper yourself after retirement.
Track your spending
You don’t need to overanalyse. But knowing how much more you’re spending helps you reset after. There are months you spend more, and some, you feel a lot more in control.
Make spending less convenient
Ever since I saved my credit card to Apple Wallet, I have spent more. It’s too easy to just tap and go. I’m seriously considering deleting it and just using my transaction account.
Let go of something else
When I booked my facial, I returned some clothes I hadn’t worn. Something had to give. I probably shouldn’t have bought them in the first place. That’s a trade-off I try to practice more often now: Something in, something out.
Look for better options
In Australia, we have EatClub, which gives you up to 40% off meals. I check it for ideas and pick places with decent offers. I’ve already saved $28 from the last two outings. My friend does something similar — she picked a utility provider that gives her movie ticket discounts.
This week was a real eye-opener.
Even with no major health or travel expenses, my regular life added up fast.
But that’s the point — it helped me visualise what retirement spending might really look like.
And now, I can strategise more clearly for my future.
If you’re not sure what your retirement life might cost, try taking a week off and just….live. The clarity you get might surpise you , and motivate you to take your financial plans more seriously.
Disclaimer: Information shared in this newsletter is not financial advice. Always do your own research before making any financial decisions.
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You're on a self-improvement path, Sarina :)
After looking at your list of activities you did for the week, I see how quickly everything can add up. That's a nice little wake-up call for me, too!
P.S. What's bouldering?