Slow Down Lifestyle Creep
- To build wealth, you need to save or invest the excess money you have each month. To have extra money each month, you need to spend less than you bring in.
- Lifestyle creep however, is you spending more and more on luxuries and “must-haves”. This is a very common occurrence as you progress through your career and your income rises.
- They key to building wealth over a lifetime is to slow down lifestyle creep as much as possible. It’s inevitable to some extent, that as our incomes grow we want to spend more. Rather than pretend this won’t happen, aim to slow it down as much as you can.
- Of course there is a balance to this like anything. You should enjoy your money but do so consciously. I write this as a reminder to myself.
- Earlier this week I almost splurged big on something I’ve been intending to hold off on until December this year. There’s no need for me to incur a greater cost by getting it now. Delaying the lifestyle creep is the right move here for me.