The Joy of Spending My Money Guilt Free

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Yes, this is still a FIRE blog.

I am unashamedly pursuing Financial Independence as a late starter and plan to Retire Early(ish) at 55.

But I’ve also recently enjoyed a not-so-cheap 4 and a half week holiday in the United Kingdom. And … I absolutely loved spending my money during this holiday without any guilt!

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Before finding FIRE

I was the typical happy go lucky person, very laid back about money in my 20s, 30s and early 40s.

My philosophy then was – I earn it, I spend it and I save some of it … to spend later.

As long as I had a job (no worries about that – I was in a stressful, demanding job) and I could pay my expenses including my mortgage and travel, I was good.

Fortunately my parents drummed into me the importance of spending within my means. I will forever be grateful to them for this advice. And grateful to past me for sticking to this advice.

Finding FIRE

It comes as no surprise therefore when one day in my late 40s, I woke up stressed about the thought of retiring. I had a lot of things going on in my head – mainly that work is too stressful and that I can’t handle it anymore. I had a suspicion that I hadn’t saved enough for retirement. I was right.

So I googled how much I needed to retire and stumbled onto the FIRE community. And was inspired by much younger people who implemented these strategies to retire at 30!

Well, that boat has well and truly sailed sometime ago so the next best thing is to retire earlier than the traditional age. Mind you, there is no ‘traditional’ retirement age anymore. In Australia, it is illegal to ask anyone to retire – you can literally work until you die.

Most people aim to retire around 67 when they may be eligible for the government age pension.

Anyway, I thought that if it took the young ones 10 years to retire early, then why can’t I do the same and retire in 10 years? That would mean I’d retire at 57 instead of 67. That’s a 10 year bonus. So I jumped right in!

After finding FIRE

The side effect of me pursuing FIRE is that I feel guilty about spending money. On anything.

Because I thought that every dollar should be squirreled away for investing. Every dollar is earmarked for my retirement, right? The quicker I can accumulate my stash, the quicker I can quit my job and live happily ever after.

And if I spend on gifts, travel, fine dining, I am denying myself early retirement.

After all, I was already starting very late and therefore behind. Time was not on my side – all that compound interest gone, poof!

Thoughtful young woman holding credit card and piggy bank

The struggle between spending and saving is real

I must admit this 180 degree change in how I view spending was very surprising to me. Because all my life, I most identify with being a spender. I honestly cannot relate to being frugal although I’ve tried.

So this push / pull with spending money is annoying and unsettling.

I agonised over buying a Roomba with free gift cards – I didn’t pay a cent for it and yet I felt guilty. How silly is that? (I wrote about that experience here)

Pre FIRE me would have happily forked over more to buy the techiest version.

I felt really guilty on a trip to Uluru, shortly after I started pursuing FIRE. I travelled with a friend and enjoyed unforgettable experiences such as dining under the stars with Uluru in the background. But I felt I’d spent so much money that I didn’t want to track my expenses.

Pre FIRE me would not have felt guilty at all. Pre FIRE me would have justified that I could easily earn back what I spent. No worries at all.


Let’s face it – being on the FIRE path can be very intense especially if you have a deadline and a constrained time frame. Late starters, anyone?

Every effort is made to save as much you can, not by societal standards or the general personal finance advice of 10%. No, you must save at least 50% of your income.

Compromises and sacrifices abound – spend $2 per meal only, cycle everywhere, no takeaway meals etc. And when you’ve reduced as many of your expenses as you can, it’s time for side hustles to increase your income.

I’m writing this tongue in cheek – because it is absolutely critical that we look at our spending and identify areas where we can save. And invest those savings. After all, it’s not fun to retire with no savings at all and rely on the mercy and generosity of the prevailing government.

However, I feel it is just as important to look at our expenses and identify which bring us joy or which we value and either not cut those out completely or think of ways to do them less expensively.

Yes, the trade off may be that it’ll take longer to arrive at FIRE, if we can’t free up much money to save and invest.

But the longer I’m on my FIRE journey, the more convinced I am that we need joy in our life NOW. We can’t just wait and defer joy to when we finally achieve FIRE. Ten to fifteen years is a long time to deprive oneself of the things that make us happy.

Of course, what makes us happy may not cost a lot of money. The whole point of FIRE is to discover what it is that fulfills us and make us happy and find the time and money to do those forever.

I don’t want to arrive at FIRE a shell of who I am and desperately in need of healing and a long rest because I’ve hustled so hard to get there.

I want to arrive at FIRE, raring to go, with lots of plans underway. I’m up for a short rest of course, doing absolutely nothing.

I also don’t want to arrive at FIRE, scared to spend my hard earned money, worried that my money will run out. It will be difficult as it is to switch from an accumulation mentality to spending the dividends or drawing down my shares portfolio.

Guilt Free Spending

In my humble opinion, the way to still have joy in our lives now while pursuing FIRE is to have money set aside for guilt free spending.

This is for spending on things that you won’t give up or find really hard to give up, that bring you joy and that you’d be miserable without it. Some describe it as Fun money.

But there were so many competing priorities when I started my FIRE journey. Do I build my non existent emergency fund? Should I invest? What should I invest in? Salary sacrifice into superannuation (retirement account)?

I had read The Barefoot Investor by Scott Pape and was therefore aware of having a splurge account ie money set aside for guilt free spending.

But I never set this up this account because my priority was investing in my superannuation and then investing in my shares portfolio outside of superannuation.

There was only so much in the kitty.

All my spending was therefore lumped under living expenses. Except Travel.

Lighthouse on cliff at Neist Point in Isle of Skye
Neist Point lighthouse in Isle of Skye, Scotland

My Travel Fund

Travel was in its own category.

And I’ve realised that this is my one true guilt free spending money account.

I don’t care about massages, spa treatments, Friday night drinks, trendy clothes etc. What really depresses me is if I didn’t have any money for travel.

After reading Ramit Sethi’s I Will Teach You to be Rich, I renamed one of my sinking funds to Invest in Self. But when money is tight, I stop contributing to it.

By contrast, it is very rare when I don’t contribute to my Travel fund. It only happened recently when I needed to build up my Bills account to be one month ahead. I felt the sacrifice keenly but knew I’d feel more secure if my Bills account was one month ahead. So it was worth the sacrifice.

At one stage, the Travel fund was larger than my Emergency Fund, at which point, I switched them around and swapped names. In fact, that was how my Emergency Fund was fully funded the first time.

I contributed all through the years the pandemic closed borders when I had nowhere to go. I did use some funds to buy online courses and programs in 2020 and 2021. But even so, the fund had a healthy balance by the time I booked my flights in February.

Heck, even when I was on holidays, I was contributing to the fund.

This is easy to do because my contributions are automatic. I set up automatic transfers from my weekly pay so I don’t have to think about it. Every week, a predetermined amount is automatically deposited into my travel fund. It is in a savings account that earns bonus interest if a minimum of $300 per month is deposited with no withdrawals. So I always make sure to deposit the minimum to get the bonus interest.

How I Spent Guilt Free on my Holiday

I accessed this account before I travelled, to pay for flight taxes and airport charges, attractions, train tickets, car hire deposit, travel insurance etc. I used Qantas frequent flyer points for return premium economy seats on the flights.

At the start of my holidays, I transferred an amount that I thought I’d need for the duration of the holiday into my global everyday account that can accommodate 5 different currencies. As I was travelling to the UK, I would need pounds (£) to pay for everything.

And that was my ‘budget’, an amount that I was happy to spend. There was money left in the Travel fund because I didn’t want to spend all of it. There is always more travel ahead!

I did not break it down to what I’m ‘allowed’ to spend on entertainment, food, transport etc. It was just a lump sum that I could spend however I liked.

At the end of the holiday, I transferred what hadn’t been converted to British £ back into my Travel fund.

souffle, rhubarb sorbet
Part of an 8 course meal at Three Chimneys

Feeling Free to Spend Again

In the past, even though my head knew that it was ok to spend this sum that I’d saved diligently for the last 3 years, I’d still feel a degree of guilt.

I’m not sure if it’s because I haven’t travelled for 3 years but this time I felt totally guilt free about spending my allocated ‘budget’.

I think it’s knowing that I still have money in my Travel fund for another trip. And I hadn’t sacrificed investing for my future.

To be honest, it felt really, really good. And so freeing, not having to think about each expense.

Final Thoughts

Don’t get me wrong – I have no desire to go back to my pre FIRE days when I spent money without a care or much thought.

And I’m not advocating that you spend money you don’t have (in the form of accruing credit card debt, for example) or spend money on fun things at the expense (pun not intended) of saving for retirement.

But I do want to strike the right balance between spending intentionally on the things I love now and saving as much as I possibly can to reach FIRE faster.

I want to do both – to have some money for the things that bring me joy (travel) now AND invest for my imminent retirement, early or otherwise.

This pendulum will swing differently in various ‘seasons’ of my life but the key is to find the right balance.

How do you find the balance between spending and saving? Do you feel guilty about spending?

How will I cope with travel costs after retirement?

Church of Our Lady before Tyn in Prague (that is not the view from my balcony!)

I am typing this post on a balcony in Prague, in the Czech Republic. On a balmy summer evening. How cool is that?

Oh, and after returning from a scrumptious dinner at a Michelin star restaurant, La Boheme Degustation. Needless to say, the meal was not inexpensive.

Lettuce heart with raspberry powder and a slice of lard – one of my dishes from La Boheme Degustation

This got me thinking …

How I currently fund my travels

I save for my travels in two separate accounts  – one that I use for ‘spending money’ while I am overseas and one for serious costs such as airfares and accommodation.

The account for spending money does not accrue great interest.  But it has no foreign exchange fees and comes with a debit card that can be loaded with different currencies. So I only transfer money on a weekly basis here when I have imminent travel coming up and while I am travelling. I work out approximately how much I need for the holidays and start automating weekly transfers accordingly.

The second account (which is really my travel account) does accrue good interest. I transfer a weekly amount irrespective if I have anything planned. So it is replenished constantly. And ready for my next lot of travels, whenever it may be.

This account is non negotiable – that is how important travel is to me. I don’t want my finances to prevent me from travelling whenever I feel like it. Just as I always have a valid passport. Sure, my work schedule may prevent me from travelling at the drop of a hat. But I don’t want to, ever, be constrained by my lack of funds.

What happens now when I am on holidays?

Generally, by the time I leave the country, I will have already paid for the expensive items such as flights and accommodation plus any pre booked events. I only need money for food, transport and sight seeing expenses while I am travelling. This money then comes out of my spending account. Which is funded. So I don’t draw any money from my usual everyday account while I am on holidays.

While I am away, my everyday account will continue to perform as per usual ie automated weekly deductions to the emergency fund, investment account etc will continue uninterrupted. And any bills that are direct debited from this account or my credit card will also continue as per usual.

Most importantly, my weekly pay cheque will continue to be deposited into this account while I am on holidays.

That’s correct – I get four weeks paid leave per year. I have never done unpaid leave before. If I travel for more than four weeks, it means I did not use up my leave entitlements the year before. Or I have long service leave available.

After I return from my travels

Any money left over in the spending account will be transferred to my emergency fund.

And that weekly amount I was depositing into this account will now be available for the emergency fund which is very close to funding 6 months of expenses.

So … when I retire …

What happens when I retire? That is, I will not have any consistent income like a pay cheque. Yes, I may have the odd dividend arriving from my shares portfolio but that is hardly consistent at the moment. Hopefully, my shares portfolio will grow to a bigger pie by the time I retire in the next decade.

But the question remains – how will I feel if I cannot replenish what I have spent?

I know intellectually, that my nest egg should provide for me – I will not retire unless I have a certain amount saved up. And whether I use the 4% rule or be more conservative and use 3% or 3.5% – that is all conjecture at the moment.

And I have budgeted overseas travel in my plans. I only travel every second year now but I can envision myself travelling every year if I don’t have work commitments.

But psychologically, how will I cope? I can justify spending money (within reason) now, knowing very well that I am still getting paid while on holidays. And that I have a job to return to which means more incoming pay cheques.

So I find myself pondering this …

Should I travel as much as I can now, while I can spend $250 on a dinner, knowing that I can replace it? And while I am in good  health and can walk happily for miles? 

Maybe I should focus on the expensive routes and cities (that’s you, Scandinavia & western Europe & dare I dream it – Antartica?) while I’m working. And leave Asia and South America until I retire.

Maybe I should have my fill of Michelin star restaurants now. And what about cooking lessons? But I have always dreamed about cooking in Tuscany or Provence – join one of those insanely expensive tours where you stay in a magnificent historical house in the countryside and cook and eat.

Will I still want to travel or will I not enjoy travelling as much if I cannot spend money on experiences that I value? If I have to question every expense, justify every dollar …

Needs and wants change …

Perhaps I am worrying needlessly. After all, what I think I want when I retire may not be what I want when I do finally retire.

For example, on this holiday when I was in London with my niece, I was much happier spending time with her than gallivanting about town, attending shows and eating at trendy restaurants. Which is absolutely what I would have indulged in if my niece were not available. And it was what I did on previous visits before she was born. I did do those things on this trip, just not as much as I did on previous trips.

So who knows … I may tire of eating at overseas Michelin star restaurants; I may give up that dream of joining a culinary tour to Tuscany or Provence; maybe the need to visit Antartica will fade …

After all, I cut out my daily takeaway cappuccinos when the need arose. Perhaps travel experiences will be not be any different.

And there may be new dreams – like spending each summer with my niece or exploring mini retirements

Sigh …. I think my FI date just got pushed further away …

Final thoughts

Am I over thinking this? Maybe. But it’s best to think out scenarios and prepare for them. At least, anticipate that there may be a problem.

And start thinking about how I would react or respond. And perhaps explore if some other contingency plans can be forged.


How about you? Do you have an expensive hobby that you worry you may not be able to fund once you retire? Am I thinking this all wrong?




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