Splurging After Retirement: Questions to Ask Yourself Before You Buy

Whether it is your first day of retirement or you are celebrating your 70th birthday, you may have the urge to splurge from time to time. Whether you are interested in a vacation home, a cruise or a fancy car, celebrating a milestone in your life may sometimes cause you to want to splurge. Your friends and family may try to talk you out of these bigger purchases. They may say you don’t need this at your age. Before you swipe your debit card or write out a large check, here are some questions to ask yourself before you make a major purchase.

1. Can you really afford that it is that you want to buy? This is the first question you should ask yourself before diving into any larger purchases. If you are still going to be financially stable after making your purchase, you’ve earned it. Go ahead and enjoy what you have worked so hard to earn. If it’s going to make your budget tight and you are going to have to sacrifice on things you absolutely need, it may be time to think about a smaller purchase to celebrate whatever milestone it is that you are celebrating.
2. Is your purchase something that is going to truly make you happy? When asking a senior what makes them happy, spending time with family and friends is at the top of almost every senior’s list. For this reason, many seniors are interested in splurging on a vacation with family and friends. If the funds are available, this is a trip that can easily be justified. Financial experts cannot emphasize enough that the trip needs to be within your budget. Experts also recommend spending money on experiences opposed to things. For example, going on a cruise or a road trip with bring you fun at the time of your adventure as well as the stories you will have to tell for years to come. Opt for trips that are going to bring you great memories. Even when things go wrong on a trip, you’ll still have stories to tell. When planning trips, keep in mind that it is important to travel earlier during retirement opposed to later. Keep in mind that you could have health issues later on that could make it very difficult for you to travel and enjoy your retirement.
3. Are you splurging for yourself or are you doing this to impress someone? Are you purchasing something to make yourself happy, are you doing it for bragging rights or do you just want to keep up with the times? Regardless of your reasoning, just say no to anything that drives you into debt. If you are thinking about a purchase even if you can afford it, why are you buying it? For example, are you thinking about purchasing a new car? If your current car still has a lot of life left in it, there is no need to splurge on a luxury vehicle. Sure, your friends may love it but you likely do not need it. For expensive material purchases that you are wanting, sitting on the idea for awhile. If you wait, chances are your desire to have certain expensive material goods will pass.

It’s best to have plan going into retirement, you do not want to spend all of your money within the first few years.