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.