The Art of Spending All Your Money to Live Richly: Why People Whose Hobby is Saving Regret It on Their Last Day
Hello, I'm Umashika 🐴
I'm worried about my old age, so I have to save money no matter what.
I'll grow my money through investments and prepare for the future.
Working hard every day, saving money, and putting it away bit by bit.
That attitude is truly admirable.
But, please stop and think for a moment.
When and on what do you plan to spend that money?
In fact, according to a study by the Federal Reserve Bank, there is data showing that many people hold their peak assets around the age of 70. In other words, a great many people end their lives without ever really using the money they worked so hard to earn and save.
There are countless books that teach you how to save money, but this time, let's consider the exact opposite perspective: how to spend it all.
I will share how to shift from a life where the goal is to increase the numbers in your bank account to a rich life filled with experiences and memories.
Chapter 1: The Value of Money is Determined by the Age of the Person Spending It
First, I will share an important fact that many people overlook.
Even with the same 1 million yen, it has completely different value at 20 versus 70
The 1 million yen you have in your 20s and the 1 million yen you have in your 70s. Even if the amount is the same, the quality and quantity of experiences you can draw from it are worlds apart.
In your 20s, you could use that 1 million yen to backpack through Southeast Asia for a few months, interact deeply with the locals, and even while occasionally facing dangerous situations, have intense experiences that fundamentally change your outlook on life.
However, once you reach your 70s, long flights become difficult due to physical limitations, and you end up choosing safe and comfortable package tours. Of course, that is also a wonderful experience, but you cannot expect the life-changing impact you could have had in your 20s.
There is always an expiration date on the things you want to do
Attending a music festival all night
Diving headfirst into a reckless romance
Taking on physically demanding activities
Going on a wild trip with friends
If you keep putting off these things that you can only do now until you have saved enough money, by the time you realize it, you will have lost both your physical strength and your motivation.
Spending money when you are young is the best advance investment
But won't I be in trouble in the future if I spend too much while I'm young?
Certainly, meaningless waste should be avoided. However, spending on experiences and relationships is not waste. Experiences gained when you are young become the "ultimate upfront investment" that enriches your life thereafter.
Skimping on a few tens of thousands of yen when you are young and missing out on valuable opportunities is a massive opportunity cost when viewed across your entire life.
Chapter 2: The Only Thing That Truly Remains at the End of Life is "Memories"
Imagine this: when you have lost your physical strength and can no longer move from your bed, what will support you then?
Will it be your bank account balance? Your investment portfolio?
The answer is clear. The only thing that will warm you at the end is "how many rich memories you have created.".
The Concept of "Memory Dividends"
Just as financial products generate dividends, memories also have "dividends."
For example, suppose you went on a wild trip with friends in your 20s. That experience becomes material you can laugh about together whenever you gather in your 30s, 40s, and 50s, saying, "We were so foolish back then."
In other words, the earlier you create memories, the longer the "dividend period" during which you can look back on those memories and feel happy..
Conversely, even if you have wonderful experiences in your 60s or 70s, the period during which you can enjoy them as memories is limited.
The "Cruel Gap" Between Health Span and Life Expectancy
In modern Japan, there is a gap of about 8 to 12 years between the period when you are healthy and independent (health span) and the period when you are simply alive (life expectancy).
During the last decade or so of life, no matter how much money you have, it is almost impossible to use it for "new experiences." The primary uses become medical and nursing care expenses.
That is precisely why you should spend money generously on the greatest task of your life—creating memories—while you are still able to move.
Chapter 3: The Trap of the Assumption That "Old Age Costs Money"
"But there is the 20 million yen problem for retirement, and I'm still anxious..."
I understand that feeling painfully well. However, actual data shows a surprising fact.
The Reality That the Elderly Have the Most Financial Assets
According to a survey by the Bank of Japan, the amount of financial assets held by age group is as follows:
60s: Approximately 14 million yen
70s: Approximately 15 million yen
Compared to other age groups, people in their 60s and 70s hold a disproportionately large amount of assets.
Why is that? The answer is surprisingly simple. As you age, while you receive income such as retirement bonuses and pensions, the things you 'want to spend money on' naturally decrease due to a decline in physical strength and motivation.
In your 20s, your desires are endless—'I want a luxury car,' 'I want to eat out every night,' 'I want to go on overseas trips'—but by your 70s, many people find that 'relaxing at home is best' and 'simple meals are enough.'
Excessive anxiety about old age is sacrificing the 'present'
Of course, minimal preparation for things like medical expenses is necessary. However, many Japanese people today are tilting the balance too far toward 'savings' due to 'excessive anxiety about the future.'
Money saved by sacrificing all current pleasures 'for the sake of old age,' only to remain unused in the end—isn't this a very wasteful way to design one's life?
Chapter 4: The '3 Priority Areas' Where You Should Spend Money Now
So, where exactly should you spend your money to maximize life satisfaction?
Priority Area 1: Investment in Health (Start from a young age)
Health is the 'absolute prerequisite' for enjoying all experiences. No matter how much money you have, it is meaningless if your body cannot move.
Investing in health means:
Nutritionally balanced meals and supplements
Regular exercise habits and personal training
Annual comprehensive medical checkups and preventive medicine
High-quality sleep environment (mattresses, pillows, etc.)
These are not mere expenses, but the most important investments to maintain the 'ability to enjoy money in the future'.
Priority Area 2: Investment in Buying Time (From your 40s onwards)
The balance of money, time, and health changes significantly depending on the stage of life:
20s to 30s: Abundant time and health, little money
40s and beyond: Money increases, while time and health decrease
Psychological research has also proven that people who pay to create time have higher life satisfaction, regardless of their income.
Specifically:
Housekeeping services and babysitters
Washer-dryers, dishwashers, and robot vacuums
Saving time by taking taxis or Shinkansen Green Cars
Fast-pass style services to avoid lines
Discard the idea that 'doing it yourself is free,' and dedicate the time you save to 'experiences only you can have.'
Priority Area 3: Investing in Experiences and Relationships
Finally, it is, after all, experiences and human connections:
Traveling to places you have never been
Concerts or performances by your favorite artists
Anniversaries or special events with family
Slightly luxurious times with friends
Material goods deteriorate over time, but experiences increase in value over time. What remains at the end of life is this 'album of experiences.'
Chapter 5: Concrete Strategies for Spending All Your Money
Saying 'spend all your money' does not mean spending it recklessly. You need to plan strategically.
Strategy 1: Start drawing down assets between the ages of 45 and 60
Many people think about 'when to start investing,' but almost no one thinks about 'when to start drawing down.'
The recommended timing is between 45 and 60 years old. This is the 'last possible moment' when you still have the physical strength and judgment to extract sufficient value from your money.
Even if you decide to 'start spending now' after turning 70, there are many cases where things do not go as planned due to physical and motivational limitations.
Strategy 2: Be aware of your 'approximate lifespan'
Are you avoiding life planning because you 'don't know when you will die'?
While an accurate prediction is impossible, you can create a rough plan based on statistical average life expectancy. The average life expectancy for Japanese people is approximately 81 years for men and 87 years for women (as of 2022).
However, please also consider that there are individual differences based on lifestyle habits (smoking, drinking, exercise, stress) and family health trends.
Strategy 3: Design your life with a 'time bucket'
The most practical tool is the 'time bucket.' Divide your life into 5 to 10-year segments and list what you want to do during each period.
Example:
20-29 years old: Backpacker travel, staying up all night at festivals, reckless romance
30-39 years old: Marriage, child-rearing, career building, buying a home
40-49 years old: Making memories with children, overseas travel as a couple, enriching hobbies
50-59 years old: Time with parents, preparing for a second life, challenging long-held dreams
The main purpose of this list is to prevent 'unawareness of things that can only be done now'. It prevents you from missing out on precious opportunities without realizing it while being chased by the busyness of daily life.
Summary: The optimal balance between 'saving' and 'spending'
Let's organize the 'life strategy of spending all your money' that I have shared:
A new way of looking at money and life:
The younger you are, the more value you can extract from the same amount of money
The only thing left at the end of life is 'rich memories'
You will spend less money in your old age than you imagine
Three areas where you should prioritize spending money:
Upfront investment in health from a young age
Investing in buying time from your 40s onwards
Investing in experiences and relationships at every age
Concrete practical strategies:
Start planned asset liquidation between ages 45 and 60
Life planning based on statistical life expectancy
Setting goals by age group using time buckets
Important note: A sense of balance to avoid extremes
What I want to emphasize here is that this is not about 'spending all your money right now.' An old age without money is a serious problem in its own right.
The key is balance. While making minimum preparations for old age, try to be a little more proactive in spending money on 'things you can only do now' and 'experiences that are valuable precisely because it is now'.
A small step you can start today
Once you finish reading this article, please try the following:
Create your own time bucket: Write down a 'bucket list' in 5-year increments from your current age
Start one health investment: Start with one of the following: dietary improvement, exercise habits, or sleep environment
Have an experience that buys you time: Housekeeping services, using taxis, or introducing time-saving appliances, etc.
Money is merely a 'voucher' that only gains value when spent. Instead of closing the curtain on your life holding a massive amount of vouchers, why not choose a way of living where you reach your final day with your heart full of true treasures called memories?
Try changing the time you spend looking at your bank balance into time spent thinking about 'what shall I do on my next day off?' That small shift in awareness should open the first door to enriching your life.
See you later
