Why Money Has No Value Unless You Use It

Money is just a store of value a tool for exchanging one thing for another. It has no real meaning sitting in an account. The real value comes when you use it to create experiences, improve your lifestyle, or solve problems. Think of a software engineer who spends money on a flight to Hawaii: the cash itself isn’t valuable, but the experience is. The same is true in retirement wealth matters only if it enhances your life.

Breaking Through the Psychological Barrier

Many retirees struggle with a fear of “wasting” money, even when their portfolios are more than enough to cover expenses for life. Take Sarah, for example, who had millions saved yet resisted buying furniture for her home. The truth? Not spending money on things that bring joy or comfort is the greater waste. If your wealth doesn’t align with your goals and improve your daily life, it’s not serving its purpose.

The Diminishing Value of More Savings

As your wealth grows, each additional dollar has less impact a principle economists call diminishing marginal utility. For someone earning $51,000 a year, an extra $100 matters. For someone earning $500,000, not so much. In retirement, the marginal utility of saving more declines, while the benefit of meaningful experiences skyrockets.

The Trap of Learned Frugality

Many retirees developed their saving habits through years of frugality cutting corners, delaying gratification, and resisting splurges. Those habits build wealth, but they can also make spending in retirement difficult. I think of my grandmother, who grew up during the Great Depression and still finishes every meal, no matter how full she is. Even when scarcity is gone, the mindset remains.

Why Time Becomes More Valuable Than Money

As we age, money loses power while time becomes priceless. Charlie Munger, worth billions, once regretted not taking the time to catch a 200-pound tuna. The lesson? You can always make or preserve more money, but you can’t add more years. Retirement is about maximizing the time you have left by using the resources you’ve earned.

Aligning Today’s Choices With Tomorrow’s Goals

One of the best ways to overcome the hesitation to spend is to view your choices through the lens of your “future self.” Ask: will the decision I’m making today create the retirement I want tomorrow? If not, it’s time to adjust. Journaling can be a powerful tool writing down your desired retirement lifestyle and checking if your current actions align with that vision.

Practical Ways to Overcome Spending Hesitation

• Write down your retirement goals and compare them to your current spending habits.
• Prioritize experiences and quality of life improvements over additional savings.
• Reframe “waste” not as spending money, but as missing opportunities to live fully.
• Remind yourself that portfolios are tools, not trophies.

The Core Principle of Retirement Planning

Retirement planning isn’t just about spreadsheets, tax brackets, or portfolio balances. It’s about using money to live intentionally. If you reach retirement with more than enough saved but are unwilling to use it for a better life, you’ve missed the point. Money is a tool, and its highest purpose is to help you build a retirement that is meaningful, joyful, and aligned with your values.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost

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