I have written a lot about the challenges we face moving from a working career to retirement. About how difficult it can be creating a new persona that is not linked to our career or the title we had while working which often defined who we were. Most people eventually make that transition but there is another challenge which is easy to miss, and I see this with many clients I work with.
The move from saving and building wealth to spending that wealth in a way that brings them true happiness.
I see many people who have what they want, huge wealth, but not what they need, real happiness. For many being a saver has become part of their identity and making the change to spending that wealth is a massive challenge. What makes this challenge more complicated is that even when some people do spend money it does not necessarily make them any happier,
In his book The Art of Spending Money, Morgan Housel says: There are two ways of spending money. One is as a tool to live a better life. The other is as a yardstick of status to measure yourself against others. Many people aspire for the former but spend their life chasing the latter.
We are all different and what makes one person happy does not necessarily make another person happy. Often, we do what we think people expect of someone with our level of wealth should do and are still left feeling disappointed and unhappy.
A simple lifestyle does not mean that we cannot live with nice things in a beautiful home and enjoy wonderful holidays. These things can make life easier and more comfortable, but what is important is that we choose this life based on our own values and needs and not because everyone else who looks like me is doing it.
Most people spend their life making a living, don’t be someone who forgets to build a life.
Dirk Groeneveld, Certified Financial Planner
t. 083 261 9287
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- Previous Columns:
- How Many Good Summers Do You Have Left?
- Change From Spending on Stuff to Spending on Memories
- Retire With A Plan. Then Tear It Up.
- It May Be Time to Reconsider What Retirement Means to You
- We Love A Sale, Except When Investing
- The difference between saving and investing
- Where is our focus?
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