Summary6 min read

Optimal Finance Daily: "5 Steps To Learn to Spend in Retirement" (Part 1)

Episode 3475 | March 1, 2026
Host: Diania Merriam
Author: Fritz Gilbert, The Retirement Manifesto

Episode Overview

In this episode, host Diania Merriam reads and reflects on Part 1 of Fritz Gilbert’s blog post, “5 Steps To Learn to Spend in Retirement.” The focus is on an often-overlooked challenge in the transition to retirement: breaking the habit of relentless saving to allow oneself to actually enjoy the money accumulated. The discussion addresses the psychology of retirees who struggle to spend after a lifetime of frugality, the importance of revisiting one's “why” for saving, and the personal evolution necessary to align financial behaviors with changing life goals.

Key Discussion Points & Insights

The Struggle to Spend After a Lifetime of Saving

Problem Statement: Many diligent savers find it difficult to spend money in retirement, despite having achieved their savings goals.
- "After years of saving in order to achieve their retirement dreams, many retirees have a hard time breaking old habits. Many retirees spend too little money. There's actually a name for this, chrometophobia." — (00:30)
This is particularly relevant to FIRE (Financial Independence, Retire Early) advocates, whose decades-long commitment to saving can be hard to unwind.

Real-Life Example: The Reader’s Dilemma

Brian’s Struggle: Fritz shares a message from a reader, Brian:
- "It's amazing to me that trying to sensibly increase the spend rate actually seems like work. We're going to make a concerted effort to spend more this year, with most of it coming from travel." — (01:15)
The post aims to help “all you Brians out there” who want to find joy in spending after reaching retirement.

Personal Backstory: Saving as an Identity

Fritz's Experience: A childhood habit of counting savings grew into an identity rooted in disciplined saving.
- "From the age of 10 until my retirement at age 55, that habit became deeply ingrained. Automated savings, careful spending, consistent tracking of our annual net worth decade after decade." — (02:10)
Recognition that achieving retirement readiness is the result of long-term discipline, but that discipline can be hard to redirect once the saving goal has been achieved.

Sensitivity to Diverse Financial Realities

Fritz acknowledges that this topic of “learning to spend” may feel out of reach or even insensitive to those who are struggling and have not been able to accumulate wealth.
- "I realize the topic of today's post could cause some animosity among those who are struggling. I'm sorry for your situation and I respect how these words could make you feel." — (02:50)
Encourages readers/listeners to focus on content relevant to their own stage and needs.

“What's Your Why?”—Re-examining Financial Goals

Before offering his five steps, Fritz stresses the importance of revisiting your purpose:
- "My goal is not to die with a bigger number. At the same time, I want to ensure we don't run out of money before we die. My goal is to enjoy life, especially the limited number of active years we have remaining." — (04:00)
- "I've broken the chains that once tied me to a desk. It's time to enjoy the freedom I've earned. I also want to become more generous, to leave a legacy of helping others." — (04:30)

Life Events Prompting Change

Turning Points: Fritz cites a recent magazine feature and the passing of his father as major catalysts for his mindset shift about money.
- "As I read those words, I realized my why has changed ... My dedication to the new why was reinforced when I lost my dad last month. He lived a good life and made a big impact on me. I realize our time on Earth is limited and it's important to identify our priorities and live life accordingly. I hope my dad would be proud." — (05:10)

Invitation for Reflection

Key Question:
- "What's your why? It's an important question to answer, and I encourage you to think about it. More importantly, I encourage you to be intentional in aligning the steps you're taking with the goals you've identified." — (05:58)
The post challenges listeners to ensure their financial actions reflect their new retirement goals, not outdated accumulation mindsets.

Preview: The Five Steps

The actionable “five steps” promised by the title are not discussed in this episode—they are reserved for Part 2.

Host Diania Merriam’s Reflections ([08:49])

Book Recommendation: Draws a parallel to "Die With Zero" by Bill Perkins:
- "If you spend hours and hours of your life acquiring money and then die without spending all of that money, then you've needlessly wasted too many precious hours of your life. … If you die with a million dollars left, that's a million dollars of experiences you didn't have." — (08:49, quoting Perkins)
On Legacy: Encourages giving to children earlier, when it can have real impact, rather than bequeathing large sums after death.
Balancing Act: Notes the challenge of ensuring you enjoy your money while also making sure it lasts:
- "It seems like there's this tricky balance between spending enough to enjoy your retirement and making sure your money lasts the rest of your life." — (09:51)
- Retirees manage this by keeping fixed costs low and spending more in flexible, discretionary ways (like travel) so that expenses can be pared back if needed.

Notable Quotes

Fritz Gilbert:
- "My goal is not to die with a bigger number. ... My goal is to enjoy life, especially the limited number of active years we have remaining." — (04:00)
- "What's your why? … Be intentional in aligning the steps you’re taking with the goals you’ve identified." — (05:58)
Brian (reader):
- "It's amazing to me that trying to sensibly increase the spend rate actually seems like work." — (01:15)
Diania Merriam (quoting Bill Perkins):
- "If you die with a million dollars left, that's a million dollars of experiences you didn't have. … No way is that optimal." — (08:49)

Timestamps for Key Segments

00:24 — Introduction to the problem: the challenge of spending in retirement
01:15 — Brian’s reader comment; relatable real-world struggles
02:10 — Fritz's lifetime savings habit, and early retirement journey
02:50 — Sensitivity to less privileged listeners
04:00 — Redefining the “why” of financial goals in retirement
05:10 — Life events prompting mindset change
05:58 — Call to listeners to revisit their own financial “why”
08:49 — Diania Merriam’s commentary, “Die With Zero” insights, and strategies for flexible retirement spending

Memorable Moments

Genuine acknowledgment that some listeners may find the topic of “learning to spend” distant or difficult, handled with humility.
The emotional impact of Fritz losing his father, which underscores the importance of not postponing life enjoyment.
Diania’s recounting of common strategies among retirees for balancing enjoyable spending and financial security.

What’s Next?

The episode ends by noting that the actionable “five steps” for learning to spend in retirement will be shared in tomorrow’s follow-up episode.

For anyone grappling with how to shift from saving to spending in retirement, this episode offers empathetic insights and invitations to align your financial behavior with your life’s new priorities.

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Transcript6 lines

[00:01]
A
Hey Sal. Hank, what's going on? We haven't worked a case in years. I just bought my car at Carvana and it was so easy. Too easy. Think something's up? You tell me. They got thousands of options, found a great car at a great price, and it got delivered the next day. It sounds like Carvana just makes it easy to buy your car, Hank. Yeah, you're right. Case closed.
[00:25]
B
Buy your car today on Carvana. Delivery fees may apply. This is optimal Finance Daily Five Steps to Learn to Spend in Retirement Part 1 by Fritz Gilbert of TheRetirement Manifesto.com There's a common problem that hits many people in retirement. After years of saving in order to achieve their retirement dreams, many retirees have a hard time breaking old habits. This seems to be particularly true of those who have been diligent savers throughout their working years. Many retirees spend too little money. There's actually a name for this, chromtophobia. It's a difficult problem to solve, but today we're going to look at how to encourage folks to exercise their freedom to spend in retirement. You've worked your whole life to reach this point. Don't let fear and anxiety crash your retirement party. My wife and I have been intentional in trying to learn how to spend in retirement without worry, and I'm hoping some of the lessons we've learned will help those of you who are also trying to learn to spend in retirement. Like Brian, who recently sent me this comment in an email. It's amazing to me that trying to sensibly increase the spend rate actually seems like work. We're going to make a concerted effort to spend more this year, with most of it coming from travel. End quote this post is for all of you Brians out there. My thoughts and lessons on how to learn to spend in retirement it's time to enjoy life while we still can. I have a persistent memory from childhood. I was a young man still in elementary school. Between some odd jobs and my weekly allowance, my savings were starting to grow. I remember emptying my piggy bank and counting how much change I had saved. I'd carefully stack the coins into $1 increments and build the piles on a card table in my room. Once they were all stacked, I'd count them up. I enjoyed watching the numbers grow from the age of 10 until my retirement at age 55. That habit became deeply ingrained. Automated savings, careful spending, consistent tracking of our annual net worth decade after decade. Starting with nothing, I was successful in achieving a dream. I was able to retire early. The diligence has now been rewarded. I realize many never enjoy that luxury and I consider myself blessed. But I also realize the fact that my situation today is a result of a decades long commitment to making savings a priority. My heart goes out to those who face a life of poverty, and I realize the topic of today's post could cause some animosity among those who are struggling. I'm sorry for your situation and I respect how these words could make you feel. I also ask that you recognize the decades of sacrifice I've made to arrive at my current situation. I suspect many readers can relate and have made saving a priority over the decades. We each have our own journey, and today's post is focused on those who have a deeply ingrained savings habit that they're now struggling to break. If that doesn't apply to you, focus on my other posts that can help you, such as how to Retire in five Simple Steps what's your why? It's appropriate at times to ask why. This is one of those times, and it's an important question to ask before we get into the five lessons on learning how to spend in retirement. Why did it matter if those numbers were growing when I was younger? For most of my working life, the answer was of course, so I can retire someday. Now that I've retired, there's value in revisiting the why it's changed, and it's important to recognize that fact. My goal is no longer to build a bigger pile. I've achieved the goal. I've won the game. It's time to change the strategy for my second half. As I think about my why for my retirement, I'd summarize it as follows. My goal is not to die with a bigger number. At the same time, I want to ensure we don't run out of money before we die. My goal is to enjoy life, especially the limited number of active years we have remaining. I've broken the chains that once tied me to a desk. It's time to enjoy the freedom I've earned. I also want to become more generous, to leave a legacy of helping others. The seed for today's article was planted when I read a recent article in which I was featured. The article from Vested magazine titled Striking a Balance on Spending, contained the following during his working years, Fritz Gilbert was a super saver. He socked away an average of 20% of his earnings and invested carefully. But when he retired from a 33 year career in the aluminum industry in 2018, he and his wife Jackie switched their mindset within the confines of their carefully constructed financial plan, they became unabashed spenders, end quote. As I read those words, I realized my why has changed. The article helps solidify in my mind the importance of that change and and led me to write the words you're now hearing. My dedication to the new why was reinforced when I lost my dad last month. He lived a good life and made a big impact on me. I realize our time on Earth is limited and it's important to identify our priorities and live life accordingly. I hope my dad would be proud. Both factors led to my decision to summarize the changes we've made to support our new WHY in the hopes they can help others who face a similar situation. What's your why? It's an important question to answer, and I encourage you to think about it. More importantly, I encourage you to be intentional in aligning the steps you're taking with the goals you've identified. If you, like me, have decided your why is no longer focused on increasing your net worth, what steps are you taking to align your activities with your new priorities? Five Steps to Learn to Spend in Retirement Hear those On tomorrow's episode. You just listened to Part one of the post titled five Steps to Learn to Spend in Retirement by Fritz Gilbert of TheRetirementManifesto.com Spring break isn't what it used to be. It's better this spring. Stay three nights and get a $50 Best Western gift card. Life's a trip. Make the most of it at best Western. Visit bestwestern.com for complete terms and conditions.
[07:37]
C
Imagine you're a business owner who has to rely on a dozen different software programs to run your company. Each one is expensive, overly complicated, and
[07:45]
B
worst of all, none of them are connected.
[07:48]
C
Now imagine a platform that could tackle all of your business management needs in one place. That platform you're imagining, it's Odoo. Odoo has all the programs you'll ever need and they're all connected on a single, simple, easy to use software, giving you peace of mind that your business is always being taken care of from every angle. Odoo assists in accounting, marketing, inventory, hr, CRM, manufacturing, and everything in between through its user friendly interface and open source applications. Basically, if your business needs it, Odoo's got it. Odoo sounds pretty amazing, right? So stop wasting your time and money on those expensive, disconnected platforms and let Odoo harmonize your business with simple, efficient software that can handle everything for a fraction of the price. It doesn't get much better than that. So what are you waiting for? Discover how Odoo can take your business to the next level by visiting odoo.com that's o d o-o.com, odoo Modern management Made simple.
[08:49]
B
This article reminded me of a popular book within the FI community titled Die With Zero by Bill Perkins. Bill says, quote, if you spend hours and hours of your life acquiring money and then die without spending all of that money, then you've needlessly wasted too many precious hours of your life. There's just no way to get those hours back. If you die with a million dollars left, that's a million dollars of experiences you didn't have. And if you die with $50,000 left, well, that's $50,000 of experiences you didn't have. No way is that optimal. The question we must all answer is how to make the most of our finite time on earth. End quote. He also makes the argument that rather than leaving your children a large inheritance when they're middle aged and likely already financially established, you may consider giving your children whatever you have allocated for them before you die. That way you can give when it will have the most impact on their lives. It seems like there's this tricky balance between spending enough to enjoy your retirement and making sure that your money lasts the rest of your life. Since none of us have a crystal ball and know how many years we have left, it can make planning for this challenging. My friends who are retired and actively drawing down from their portfolios tell me that they integrate flexibility in retirement spending. Their fixed costs are relatively low, and if they're going to splurge, they do so in areas that are easy to pare back if needed, like vacations. This way they make sure they're enjoying their retirement, but they have the confidence that they can reduce their spending without much effort if need be. Well, that should do it for today. Have a happy rest of your day and a great weekend and I'll see you tomorrow. Where we'll finish up this post and where your optimal life awaits.