Avoiding Lifestyle Creep

Have you ever caught yourself daydreaming about all of the amazing lifestyle changes that await you just beyond your next pay raise? Have you ever fantasized about how to spend a work bonus, only to have the money instantly disappear into your monthly spending? If this sounds familiar, you might be prone to lifestyle creep.

Lifestyle creep—also known as lifestyle inflation—is the tendency to increase your spending as your income increases. Don’t let your next raise, bonus or extra source of income disappear into your monthly spending—use it to help your savings grow!

The good news is that protecting yourself from lifestyle creep is not that hard to do, once you spot it. We’ve rounded up five different ways you can counter lifestyle creep by using your money and your mind.

  1. Write Down Your Goals
  2. Pay Yourself First
  3. Build a Budget
  4. Stop Comparing Yourself to Others
  5. Get Creative with Your Upgrades

Self-awareness is the key to countering lifestyle creep. Clear goals, a customized budget and a focus on paying yourself first will allow you to enjoy more of your money in the long term. View the video below along with additional resources to learn more 🙂

Additional Resources:

It’s a Money Thing is a registered trademark of Currency Marketing