There’s an interesting mentality that I notice creeps up periodically. It’s the idea that some people think that being a millionaire makes you filthy rich with plenty of money to throw around.
Being a millionaire doesn’t mean that you’re sitting on buckets of cash. It ends up meaning that you have your money invested and out-of-sight for the most part
Because we made it to millionaire status a couple of years ago, we should have tons of money at our disposal, right? Wrong. The irony is that we’re basically on a fixed income now.
However, if we want to ensure that we have enough money to live off until we die and possibly leave some to our daughter, we literally can’t spend as we please. As a regular FIRE retiree, we need to spend in the same ballpark as we always have.
Just because your net worth looks good doesn’t mean you have gobs of cash to throw around. Many people think that your net worth symbolizes how much money you have sitting in your wallet or the bank… it’s not.