For many Americans, a $3 million retirement portfolio sounds like a ticket to financial freedom. The Ramsey Show's George Kamel agrees, with one caveat.

On a recent episode of the Iced Coffee Hour podcast, Kamel said most people would be "set for life" with a $3 million nest egg.

"Now, if you spend $20,000 a month, it may not get you that far (1)," he warned.

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A comfortable retirement can quickly turn into a financially stressful one if wants take over needs — like wanting a bigger home, luxury travel, expensive cars or simply having costly monthly habits.

Lifestyle creep matters because how much you spend each month is often just as important as how much you saved in the first place.

Lifestyle creep — slowly spending more and more money without noticing — is one of the biggest threats to retirement savings, and can happen to anyone. Even those with a sizable nest egg or income.

In one case featured in Moneywise, a couple in their 50s who made $300,000 a year and had no mortgage or loans ended up $30,000 in debt after a series of lifestyle upgrades.

At first, the changes may seem harmless: flying business class, dining out several nights a week, upgrading your car, buying a vacation property or helping out your adult kids financially.

But over time, those upgrades can chip away at a hard-earned nest egg, and it gets hard to scale back the expensive lifestyle.

Fidelity Investments suggests that retirees will spend (2) 55-80% of their annual pre-retirement income, but this can fluctuate depending on lifestyle and healthcare costs.

Inflation affects retirement savings as well, Smart Asset notes (3), so it's wise to factor it into your retirement budget, even if you're not planning on upgrading your lifestyle dramatically.

The goal — whether you have a $3 million portfolio or not — is to make your money last.

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One of the most common recommendations is to separate essential expenses from discretionary spending.

Housing, groceries, healthcare and insurance need to remain affordable even during bad market years. Luxury or 'fun' spending, on the other hand, should stay flexible.

Retirees should also keep a close eye on withdrawal rates. Using the commonly cited 4% rule, a $3 million portfolio could support roughly $120,000 in annual withdrawals before taxes. But spending closer to $20,000 per month would require pulling out about $240,000 annually which is a pace that may not be sustainable long term.

Here are some other tips to avoid lifestyle creep and protect savings:

Put together a retirement budget with the help of a financial professional

Reduce discretionary spending during market downturns

Keep an emergency cash cushion

Plan early for healthcare and long-term care expenses

Review spending regularly and adjust your budget accordingly

It takes as much discipline to spend a nest egg cautiously as it does to build one up. But with a sensible approach, there'll be enough padding in the nest to stay comfortable.

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X (1); Fidelity Investments (2); SmartAsset (3)

This article originally appeared on Moneywise.com under the title: Here's what Ramsey Show host George Kamel says you need to do to retire with $3 million and be 'set for life'

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.