Lynda Moore wants you to use your savings to reward yourself for a life well-lived

My parents spent most of their working lives being told to save, save, save. Put something aside for the future. Don’t waste it. Be sensible.

And for decades, that’s exactly what they did. They were good at it.  Mum managed the money and every week; Dad got his pocket money. (in his younger days, it was for beer and cigarettes, in retirement the beer and cigarettes were swopped for electric gizmo’s) Mum watched the numbers grow, made careful choices, and they told themselves that one day, it’ll all be worth it.

Then retirement arrives. The years of planning have paid off. You finally have time for the things you’ve dreamed about travel, hobbies, long lunches, days that belong entirely to you.

But suddenly, there’s a strange new feeling: hesitation.  I hear this a lot from conversations with financial advisers.  Their clients have diligently saved for years, have a really great nest egg, but struggle to spend it and enjoy themselves.

After all those years of saving, spending your own money can feel uncomfortable, almost wrong. You might find yourself thinking, “Can I really afford this?” even when the answer is yes. (If you follow my articles, you will recall the conversation Mum and I had over snapper versus gurnard) Or you might hesitate to take that trip or buy that new sofa, just in case you’ll need the money later.

You’re not alone. Many retirees find that their biggest challenge isn’t financial it’s psychological. They’ve learned how to save, but not how to spend.

I will keep reinforcing this concept when talking about money.  Our relationship with money isn’t purely practical it’s emotional.

Saving gives us a sense of control and safety. Every dollar put aside is a quiet reassurance that our future is protected. Over time, that habit becomes part of who we are responsible, careful, forward-thinking.

Spending, on the other hand, can trigger fear. The act of seeing money go out can activate that old, deep-seated voice that whispers, “Be careful. You might need that later.”

But here’s the thing: the “later” you’ve been saving for is now.

Retirement isn’t about holding on forever; it’s about finally letting yourself enjoy what you’ve built. It’s the time to shift from accumulation to appreciation.  To use your money in ways that bring meaning, joy, and comfort to your life.

The challenge is finding a way to do it without guilt. You need to give yourself permission to spend.

I’m not talking about suddenly becoming carefree overnight and blowing your life savings.  What I am saying is give yourself some structure, something that feels like a boundary but is really permission in disguise.

To do this you do need to know your numbers.  Even now, Mum still has her budget, when she gets her pension, some goes to fixed costs, some to everyday bills, some to savings (she’s planning a trip to Christchurch to see family), and she has her fun money. This gives her confidence in her day-to-day finances.

If you have your nest egg invested, then you have capital (the lump sum bit), as well as income, your pension and interest or the return on your investment to consider. This is where getting good advice from an authorised adviser is your best option.  They can run the numbers for you and help you work out how much you can spend without running out of money before you do, and allow for providing for family, or whatever else it is you want to do with your money along the way.

I found these couple of ideas which I thought I would share with you. They could be a starting point for you to take to your adviser and see if they could work for you.

1. The 0.01% rule

If you enjoy a little structure, this could be for you.  It’s also a lovely mindset reset. The idea is that you can safely spend 0.01% of your net worth each day without affecting your long-term financial wellbeing. 

That might sound a bit mathematical, but let’s translate it.

If your net worth is $1 million, 0.01% of that is $100. This means in theory you can spend up to $100 a day. I’ve pulled out the calculator for you, and your money will last 10,000 days, which is just over 27 years. You can spend it each day, or save it up and use it later, completely guilt-free.

What was your first thought when you read that sentence?  Did it feel reckless?  “I could never spend that much money in a day”. Or you’ve already spent the $100 and would like a top up?  

This is why this works as a concept; whatever the number is, your emotions kicked in. What you think and feel about money, came first. Then when the emotions calm down you can apply rational thinking and crunch the numbers to see if this is possible for you based on your situation. If it is, then it takes the emotion out of small spending decisions, the nicer dinner, the round of golf, the new garden furniture, and replaces it with calm confidence.

Think of it as financial mindfulness: a little daily permission slip to enjoy what you’ve earned.

2. The “spend the gains” rule

This is like the ‘rewards for good behaviour’ concept that I talk to clients about when they are starting their money management journey. This approach is a little more celebratory. The idea is simple: if your investments or savings perform better than expected in a given year, you get to spend the extra.  Again, a bit of number crunching required, and you might not get to reward yourself quite as regularly as the first idea.

In very simple terms, if your plan assumes a 6% return and you achieve 8%, that extra 2% is yours to enjoy. I’ve got the calculator into action, so assuming our $1 million investment, a 6% return is $60,000, 8% is $80,000, so you would take the $20,000 (less tax) as your spending bonus.

From a psychological perspective, this feels rewarding rather than risky. You’re not “taking away” from your nest egg you’re enjoying the results of good planning and positive performance.

It’s a mindset of abundance. You’re acknowledging that your money is working for you and allowing yourself to benefit from that success.

You could use the gains for a trip, to treat the family, or simply to make your daily life a little easier or more beautiful. It’s not about extravagance; it’s about celebration.

These guidelines aren’t really about numbers; they’re about trusting yourself and your relationship with money.

If you’ve spent decades building good habits around money, those habits won’t disappear. But what you want them to do is evolve. Responsible spending in retirement isn’t about fear it’s about freedom.

It’s giving yourself permission to use your money in ways that align with your values. Maybe that’s travel. Maybe it’s family. Maybe it’s simply creating a home that feels peaceful and inviting.

Whatever it is, the emotional benefit is just as important as the financial one. When we allow ourselves to enjoy what we’ve earned, it reinforces a sense of self-worth and gratitude. It reminds us that our money has a purpose and that purpose is to support a meaningful, fulfilling life.

Of course, permission to spend doesn’t mean abandoning all structure. It’s still important to review your plan, understand your income streams, and make sure your money is working for you. Once you’ve done that and you know you’re safe you can relax into the joy of it.

Take the trip. Buy the art. Redecorate the lounge. Not because you’re being careless, but because you’re honouring the years of work that made it possible.

Money sitting in an account doesn’t bring happiness. Money used thoughtfully and joyfully does.  I saw this in action when we were renovating Mum’s house.  Throughout the project, Mum would say, “do you think I could have this, or do that?” “Of course you can Mum, you have the money” was my response. So, she spent the money and loves her top to toe renovated home.

Retirement isn’t the end of your financial story it’s the chapter where you finally get to live it. Your savings were never meant to be a safety net you never touch. They were meant to be your springboard into a life well-lived.

Go on give yourself permission to enjoy it.

*Lynda Moore is a Money Mentalist coach and New Zealand’s only certified New Money Story® mentor. Lynda helps you understand why you do the things you do with your money, when we all know we should spend less than we earn. You can contact her here.