How to not fall victim to lifestyle creep.
Victim of Lifestyle Creep? Join the Club!
Many of us can relate to the struggle of keeping our spending in check. According to this Canstar report, a whopping 58% of participants confessed to spending more than they earn. And it gets even more real for the younger crowd, with 65% of individuals under 40 finding themselves in this financial conundrum.
If you feel like your wallet is on a runaway train headed towards Brokeville, you’re definitely not alone. So, let’s dive into some tips and tricks to help you reign in that pesky lifestyle creep and get your finances back on track!
1/ Pay yourself first
Sorry to burst your bubble but this doesn't mean treating yourself to a shopping spree! It's all about squirreling away a chunk of your hard-earned cash for savings and investing before you hit the mall or order that fancy avocado toast.
2/ Check in with how balanced your money plate is
Think of your pay check as a delicious meal. You've got needs, wants, savings and investing for future you. Just like you wouldn't load up on carbs only every night (sorry, pizza lovers!), you want a balance of all three to stay financially healthy in the long run.
3/ Boost your Kiwisaver / Retirement Investments
If you're in New Zealand, it's time to give your KiwiSaver a high-five! Every time you snag a pay rise, why not bump up your KiwiSaver contributions a notch (you’re not really going to miss what you didn’t have!).
And hey, before those sweet bonuses roll in, pre-decide on stashing a % away for retirement, emergency funds, or that credit card debt you've let linger for too long.
4/ Consolidate those ‘wants’
We're all guilty of a little splurging here and there (who can resist a cheeky brunch date?). Why not corral those 'wants' into a monthly budget? Set aside an amount for all your discretionary spending—from date nights to new kicks. This simple switch will help you see those trade offs more clearly.
By nailing these changes, you’ll be able to balance living a life you love now whilst making sure you’re looking after future you.
Keen to learn more? Check out our podcast episode on Lifestyle Creep on Apple or Spotify
