Lifestyle Creep

Lifestyle creep occurs when increased income leads to increased discretionary spending. It’s the temptation to start spending more on luxuries as your disposable income increases. The goal is to not fall into this trap and keep your expenses as they were and save the extra income for emergencies, life savings, or big purchases in the future. 

Areas you might experience lifestyle creep: 

• Your social life 
• Your wardrobe  
• Your commute 
• Travel and vacation 
• Household comforts  
• Entertainment  

 How to avoid lifestyle creep: 

• Do not make any changes to spending for at least six months 
• Build a budget and avoid impulse spending - know your goals and plan ahead of time 
• Save first, spend later 
• Evaluate your purchases and spending regularly 

Recommended book: Get Good with Money by Tiffany Aliche

Read more about lifestyle creep here:   

• 6 Telltale Signs of “Lifestyle Creep” 

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Website: The Waiting Ruem Podcast