What You Need to Know about Avoiding Lifestyle Creep
You’ve been climbing up the career ladder with one higher paying position after the next. You regularly earn raises and bonuses. Yet your savings are low and your life goals still lie far out of reach.
You may be experiencing lifestyle creep. That’s when your expenses keep increasing along with your income.
That may mean buying a new car or moving into a bigger house as your salary increases. It could also involve an increase in less conspicuous purchases, like dining out and buying expensive phones.
The consequences can be serious for your finances and overall wellbeing.
Try these suggestions for bringing your spending under control and changing your relationship with money.
Learn how to say goodbye to lifestyle creep
You can reward yourself for your hard work without draining your bank account. Make strategic choices about saving and spending.
Follow these strategies:
Create balance. Take control with a spending plan. Allocate enough money for your top priorities, and put aside a small amount to enjoy something special now.
Figure out where the extra money should go. Maybe you need to pay off your debts or build that emergency fund to handle life’s inevitable surprises.
Set goals. Having specific objectives can help you stay on track when you’re tempted to splurge. Write your goals down, so you can keep them in sight.
Seek help from a professional. Work with a financial coach who can help you stay on track, provide the accountability you may need. A financial coach can be your biggest source of support and knowledge.
Tips for managing your money
It’s natural to use money to make your life more pleasant and comfortable. However, more and more possessions can distract from other sources of happiness and fulfillment.
Keep these ideas in mind:
Explore your purpose. Overspending can be a sign that you're trying to deal with difficult emotions and find meaning in your life. Try spending more time connecting with family and friends or your own spirituality.
Enjoy inexpensive entertainment. Go to free outdoor movies and concerts. Spend weekends and vacations camping and hiking.
Avoid advertising. How many messages do you receive each day urging you to acquire more stuff? Install ad blockers on your devices and take a break from social media.
Take inventory. You may not even realize how many sweaters, electronics, and books you already own. Do you really need more? You may find you’d prefer selling some things rather than buying more.
Pause before buying. Give yourself a cooling off period, especially before major purchases.
Give generously. Share your blessings with others. Making room to contribute to your favorite charities can bring you as much joy as those you are giving to.
Protect your financial security and peace of mind by preventing lifestyle creep. Monitor your spending and make intentional decisions about money that will help you create the life you really want.