Congrats! You've made it to retirement with plenty saved. Now comes the actual hard part: letting yourself enjoy it.

Today, I want to talk about a psychological barrier that ruins more retirements than a market crash ever could: The Scarcity Mindset. You can also watch my video on this topic here.

Scarcity vs. Abundance: What’s the Difference?

A scarcity mindset is a psychological state where your thinking is dominated by what you lack—money, time, or resources—even when, objectively, you have plenty. The danger is that it forces you to make suboptimal, short-term decisions out of fear rather than confidence.

The opposite is the abundance mindset. This is the belief that your resources are sufficient, which frees you to think long-term, take reasonable risks, and actually live the life you worked so hard to build.

I first heard this concept from Brian and Beau (The Money Guys), and now I see it in my practice every single day. Here is how you can "flip the switch" from fear to confidence.

1. Build a "Runway" You Can See

If you’re terrified of a market downturn, the math isn't enough to soothe your brain—you need a structure.

Many people use a Bucketing Strategy. By knowing exactly how much cash you have and how your bonds are structured, you can calculate your "runway."

• Why it works: When the market inevitably drops, you can look at your accounts and say, "I have 3 or 4 years of safe cash. I don't need to touch my stocks today."

• The Reality: Is this mathematically "optimal" in a finance textbook? Probably not. Does it prevent you from panic-selling your future? Absolutely.

2. The "Spend Something Dumb" Test

This is a strategy mentioned by everyone from Dave Ramsey to Ramit Sethi. To break a scarcity mindset, you have to flex your "spending muscle."

Take a hobby you love. Think of a "crazy" amount of money to spend on it—and then double it.

• For many of my clients, that number might be equivalent to what they earned in their very first year of work.

• The Goal: It’s going to feel insane. But once you do it, you’ll realize the world didn't end. You’re still here, your plan is still intact, and you’ve finally contextualized that your "number" on a screen actually has the power to create joy.

3. The 0.01% Stress Test

How do you know if you’re being responsible or just being "cheap"? I like the 0.01% Test (shout out to automotive YouTuber Ed Bolian for this one).

The rule is simple: If a financial annoyance costs 0.01% of your net worth or less, you are not allowed to let it ruin your day.

• The Math: If you have a $5 million net worth, 0.01% is $500.

• If someone dings your car door, you get shipped the wrong product, or you lose a $200 deposit—write it off. Your time and mental energy in retirement are your most valuable assets. Don't trade hours of your happiness for a dollar amount that doesn't move the needle on your long-term success.

What’s Your Scarcity Story?

I want to hear from you. Have you noticed a scarcity mindset creeping in as you approach 2026? How are you fighting back to ensure you actually enjoy the "abundance" you’ve created? Let me know in the comments below.

At Barrett FP LLC, we help DIY investors move past the "number" and start living the life. Check out my other videos for more retirement planning tips, and don't forget to like and subscribe.

Ready to move from fear to confidence? See if we’re a good fit.