Lifestyle Creep is when one's standard of living increases due to an increase in their income. Eventually, those purchases that felt like a luxury or splurge will become everyday necessities. While it can be satisfying to buy nice things and treat yourself well, you must also be realistic about whether you can afford the lifestyle you're living. So, ask yourself, "Is my lifestyle creeping up on me?"

What Does Lifestyle Creep Realistically Look Like?

Whether you've got an increase in income or a decrease in your expenses, Lifestyle Creep acknowledges that you have increased discretionary spending and your spending decisions reflect that.

Things that were once a luxury or non-essential are now considered a part of your everyday lifestyle. That store you only bought from only every so often is now a place you buy from regularly. The bottle of wine you purchased for special occasions now finds its way into your ordinary food shopping.

How Can I Avoid Lifestyle Creep?

It requires being intentional with your money choices.

Shift Your Thinking

A pay raise or increase in financial resources means it's time to start buying lots of fancy shoes, right? Let's think again! Just because you have more money doesn't mean you have to spend it. This is a great opportunity to save more, pay down more of your debt, or save even more for retirement. 

Keep Your Financial Goals in Mind (or Create New Ones)

There might have been a point in time where you dreamed of having an extra $50 or even $5,000 included in your salary to push you further toward your financial goals. Keep those in mind! Instead of imagining all the fancy dinners or expensive workout classes you can take, think about the student loans you can get closer to paying off or how much your retirement fund could grow. 

If you find yourself reaching your financial goals sooner than expected, let's create some new ones! Could you put even more money away for retirement? Or have a bigger down payment to purchase a home? The opportunities are endless!