Frugal retirees: Go ahead, spend your money

Retirement » Frugal Retirees: Go Ahead, Spend Your Money

Don't equate spending with squandering
Don't equate spending with squandering © Monkey Business Images/

Sometimes it's more prudent to spend your money than to save it. If your car is running up big repair bills, laying out the cash for a new one might be cheaper in the long run. If your house is ready for a new roof, it's likely to be more cost-effective to replace it now than wait until you start seeing water damage on your ceilings. If you want to go back to school in retirement to prepare yourself for a new career, think of it as an investment in your future rather than an extravagance.

Other big expenditures, such as new furniture or a dream vacation, can be a harder sell to the supersavers among us, Garry says. But consider whether you'd get more happiness from a slightly bigger bottom line on your mutual fund statement or, let's say, a once-in-a-lifetime cruise around the Greek isles. You might find yourself lounging on the beach on Mykonos before you know it.