Lifestyle Creep is real.
Lifestyle Creep happens when we make a little more money, and we’re enticed to spend a little more on our “Wants” , or, the fun stuff. In other words, you get a raise, you treat yourself. Then you get used to treating yourself. Suddenly, what was once a treat is now somehow a regular purchase. That extra massage you splurged on becomes a monthly massage. That special treat at the coffee shop becomes your regular order. You get it.
Lifestyle Creep only becomes a problem when you’re no longer building wealth sustainably. You’re making more money, but you’re also spending more, so you may not even notice the difference–and you’re certainly missing out on the opportunity to grow your money! Money may be slipping through your fingers and you don’t have much to show for it beyond consumable, and sometimes empty, goods.
Good news! You can find balance by focusing on your Savings Creep! That means, when income goes up, so do your (hopefully automatic) contributions towards your financial goals.
We maintain balance when we bring in intentionality. We work hard for our money, and we acknowledge the ways in which we’d like to treat ourselves–no shame. And, we can be mindful and work towards our goals in a better way.
How You Can Maintain a Lifestyle Creep/Savings Creep Balance
Check your current status: When was the last time you got a raise? Did you increase your automatic contributions to Savings and Retirement as well?
Check your Retirement Contributions. Are they in line with your income today? The easiest way to do this is think in percentages. This way, the more you make, the more you put away. If you go through a period of making less, you put less away. Aim to put away 20% of your income, monthly. That means 15% as a Retirement Contribution and 5% towards Savings. Start small, it’s ok!
Plan Ahead: If you know you’re going to be making more money, take action on the front end. This could look like: you receive that pay increase and you immediately increase your savings transfers to stay in line with your goals. Then, treat yourself with what is left over.
Tip! Automate where at all possible. This may look like checking the “automatic escalation” box on your retirement plan at work. In this case, as your income increases, so do your contributions. Your employer may also allow you to send part of your paycheck automatically to Savings. That way, it’s taken care of on the front end.
How good would it feel knowing that you’re not only spending in an intentional way, but also in a way that feels more secure?
Unlocking Abundance 