As I hit 45 in mid-2022, I made the decision to enter a decumulation phase. Instead of continuing to save and invest aggressively, I opted to spend more aggressively. One way to decumulate is to increase spending on food.
Dying with excess money is not ideal. It would mean that we wasted time and energy trying to accumulate wealth in our younger days. It would have been more optimal to have worked less and enjoyed life more. However, breaking old habits can be challenging. Even after semi-retiring in 2012, I found it difficult to stop saving a portion of my passive and active income streams. Not saving felt foreign to me, so I continued my frugal habits.
To start my decumulation journey, I decided to start small and work my way up. The main challenge was figuring out what to spend more money on. Given my love for food and the need to feed my family, I chose to increase spending on food for three months.
During this experiment, I found it easier than expected to spend more money on food. By substituting higher-quality food for lower-quality options, I was able to increase my spending without feeling guilty. I also ordered specialty foods online, such as Jamon Iberico, gourmet cookies, and fine wine.
However, after three months of indulging in luxurious meals, I found that my taste buds started to get numb. I no longer had a craving for any type of food, except for fresh fruits. This experience taught me that moderation is key when it comes to enjoying finer things in life.
While spending more on food was a nice first step in decumulating my wealth, it was not sustainable in the long run. Eventually, my body could not handle such rich foods regularly. I found that buying a new forever home was a more effective way to decumulate my wealth. Although it made me feel house rich and cash poor, the satisfaction of providing for my family outweighed the financial strain.
In conclusion, while indulging in luxurious meals occasionally can make you feel rich, it’s important to remember that moderation is key. Spending more money on food may not be a sustainable way to decumulate wealth in the long term. Instead, investing in assets like real estate can provide a more stable and long-lasting way to decumulate wealth.
