Frugal Living

What is lifestyle creep, and how do you avoid it?

What is lifestyle creep, and how do you avoid it?

Lifestyle creep is when your lifestyle increases as your income does. 

As you get further in your careers and have more money coming in, and you start to relax. It is easy to let things creep up on you, another subscription here and another take out there. Suddenly you feel like your making more than ever but feel just as broke. That is Lifestyle creep.

Spending money on unnecessary things, Splurging and treating yourself because you deserve it. Part of the problem with lifestyle creep is that over time you lose sight of what you actually need. It is hard to give up these things once they are in place so it is best to try and avoid it.

With enough money coming in to cover all your expenses it is easy to feel comfortable but the truth is that your circumstances can change in a moment and without any warning.

You might think that this lifestyle creep is unavoidable, but it is not. All it takes is remaining vigilant with your expenses. As soon as you find you have extra money coming in regularly you need to find a use for it. Putting this money towards your goals will help you reach them quicker. It also means that you won’t get used to having all the unnecessary extras.

If you do find yourself getting a raise or picking up a side hustle. 

Our advice, buy yourself a bottle of wine or a pair of shoes that you’ve been eyeing off.  Celebrate your win but then allocate the ongoing money towards your goals. If you don’t think you can trust yourself to not spend this extra money each pay cycle, then why not set up an automatic transfer.

If you don’t want to feel deprived, be sure to add some spending money into your budget each week but keep your goals in mind as you do.

What will feel better in the long run, buying yet another take away or accomplishing your goals. I know what I would prefer.

Have you suffered from lifestyle creep?



Emily is a 30 year old mother of two, who posts all about saving money, living frugally and building wealth on Instagram and Facebook. 


Any advice or opinions contained in this Blog post are general in nature and should not be taken as financial advice. When seeking advice on your personal financial situation please do your own research and seek professional advice.