What Are Signs of Lifestyle Creep (what does it *really* look like?!?)

What are Tell-Tale Signs of Lifestyle Creep…

Lifestyle creep is one of the biggest (and probably the most overlooked) obstacle to getting ahead financially. It keeps a lot of people stuck, it contributes to debt, and it’s why some people live above their means.

If you’re not familiar with this term, lifestyle creep (also known as lifestyle inflation) is “increasing your standard of living every time your income increases.” However, before we go any further, earning more money does not mean that you can’t improve your life or satisfy wants. So there’s nothing wrong with moving into a home with more space or buying a new car.

But if your level of spending “always” increases as your income does, and you’re “always” buying stuff just because you can, you might be a victim of lifestyle creep.

The most obvious sign is constantly upgrading your house, or your car, or getting into more credit card debt.

But lifestyle creep isn’t always obvious…it can be subtle too. Here’s a look at a few sneaky ways it can creep into your life.

1. You stop looking for deals

When you’re living paycheck to paycheck, looking for bargains and waiting for sales is a priority. You don’t have much money, so you have to stretch your pennies to meet your needs. In which case, you might think twice about paying full price for things, and you comparison shop to make sure you’re getting the best price.

However, as your income increases you might stop clipping coupons and start ignoring generic brands. Additionally, you might stop waiting for sales and start paying full price for clothes.

Now, I’m not saying that your spending habits should remain exactly the same after making more money – realistically a few things might change. Even so, from time to time you should compare your new spending habits with your old to assess whether they’ve changed a little or a lot.

Even though you don’t have to be “so deal conscious about every purchase,” you shouldn’t toss bargain shopping completely out the window or else you’ll end up spending more on just about everything.

2. You’re going out more often (and to better places)

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