Do you have a creepy lifestyle?

Lifestyle creep is a word that gets thrown around in the money world a lot - so what is it exactly? Definitions vary but simply put:

- you spend more as you earn more (rather than saving more)

-former luxuries become new necessities

- you see non-essentials as a ‘right’ rather than a ‘choice’

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Still not sure if lifestyle creep has affected you?

You may have succumbed to the creep if ……..

-        Getting your nails done, expensive memberships or personal trainers or facials etc being seen as a need

-        Upgrading your car before your need to

-        Buying lunch out  or getting takeaways a few times a week is your new normal

-        Upgrading your home before you need to or buying too much home

-        Flying business or premium economy rather than coach

-        Credit card debt for items that are not necessities

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Why shouldn’t I enjoy my moolah if I’m earning more I hear you say????

Here are some common downsides to lifestyle creep:

-        Gets you into the habit of spending out of balance

-        Gets you into the habit of using debt or spending everything you have

-        Gets you into the habit of being used to a certain lifestyle (it’s easy to spend more but hard to cut back!)

-        Gets you into the habit of never having enough or being satisfied

-        Could cause you to not invest enough towards your retirement or saving for larger ticket items which may cause you to reach for debt

Make sure you check out part 2 where I will be sharing my top tips on how to not fall victim to lifestyle creep. If you want to deep dive more into this topic, make sure to check out our podcast episode on Apple or Spotify