Have you ever noticed how when your income has increased, your urge to spend has increased with it? It could be very subtle. When you have gotten a nice bonus, you deserve to celebrate it with a nice pricey dinner right? Or if you get a promotion that goes hand in hand with a bigger monthly income, don’t you deserve to spend a bit more money on luxury clothes? You can afford the newest iPhone… so why wouldn’t you get it?
Maybe it even goes as far as moving to a bigger house, because it’s your life and you deserve to be comfortable right? Right!
There is no harm in spoiling yourself once and a while, life is for living. However it is good to be aware of the choices you make. Be careful of this ‘lifestyle creep’, because that’s what it does, it creeps up on you without you noticing.
Here are 6 ways to recognize lifestyle creep:
- Spending money on luxury items
Luxury items could be anything from branded clothing, the newest skin care or expensive make up. Are you looking at the price or do you think, oh well I deserve it just this once?
- Moving to a bigger house or better neighborhood
Granted there is nothing wrong with wanting to live in a better place, your environment can have a huge impact on your well being. But have you considered all the costs? Often times a bigger house or apartment comes with higher utility costs, higher taxes, more money and time spent on chores and upkeep, … Be aware of these hidden costs, it’s not just a higher rent.
- Getting a nicer car
Cars must be one of the worst big purchases you can make. Mainly because the moment you buy one and drive it off the car sales lot, it decreases in value. Do you really need a new car? Maybe you do, and maybe it’s vital to get to your day job. But if it’s not and you just want to make people jealous with a fancy car, then maybe consider if the purchase is worth it. Often times that glamorous feeling you get when you get something shiny and new doesn’t even last very long.
- Going out for dinners more often
Cooking is a hassle isn’t it… Surely it can be. Going out for dinners can be really nice and cosy or a great way to socialize with friends or family, however, be mindful on how often you go out and how much you pay per meal.
- Spending more on vacations
Love traveling? Me too. Going on a big, beautiful holiday where you make memories can be amazing. Something to cherish for a life time. Just ask yourself if the money you are spending is worth it. It could be so, if you can afford it and this is what you definitely want to do with your hard earned money. But have you considered alternatives? There might be other places to travel to where you will get a similar or even better experience for only a fraction of the price you were about to pay.
Traveling doesn’t always need to be expensive.
- Splurging on your hobbies
Got an expensive hobby? You could be an avid reader wanting the most beautifully bound covered modern classics. Or a model train enthusiast. A stamp collector? I don’t know what you do in your spare time. Whatever your hobby is, it will be very easy to spend more on what you are passionate about. Just try to be mindful on how much you are really spending and don’t go overboard.
Maybe you recognized one or two (my god, not all six right?) points above in your own life. I won’t point and wave my finger at you, because we all fall into this lifestyle creep trap. It’s just something to be aware of.
See you around!
