how to avoid *LIFESTYLE CREEP* (one of the biggest financial mistakes)

PERSONAL FINANCE TIPS - Lifestyle creep is one of the biggest financial mistakes that keeps a lot of people living paycheck to paycheck. Here's how to save money, live frugal, manage your money better.

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[vennessakuek]

How To Avoid Lifestyle Creep
1. Increase your investments/ invest in yourself instead
2. Pretend a raise didn't happen
3. Set money goals
4. Don't make hasty decisions (real estate and transportation)
5. Pay credit cards in full
6. Don't buy what you can rent (jetski, RV, etc)
7. Spend intentionally
8. Don't ditch your budget
9. Plan for fun spending (5 to 10%)

[thisis.michelletorres]

I adopted a biblical attitude of stewardship and it helped me curb materialism! You have to unplug from cultural tendencies to equate designer products with your value or status as a person, it's silly. Instead, I created a capsule wardrobe of fine quality, essential pieces that help me look put together and, I replace or upgrade only when needed. The Jones' don't exist!

[etoineschrdlu]

This is what my late wife did over the twenty years of our marriage. She insisted on handling *all financial transactions* and would not discuss budgeting. We lived paycheck to paycheck for twenty years while she made minimum payments on three credit cards until they all were maxed out. When she died, suddenly I became solvent, and within two years I had substantial savings even though I had bought a new car. At this time I have mortgage free house, no credit card debt (paid off every month), and my only debt is a home improvement loan for the solar panels on my roof. The trick is to not buy things you don't need.

[nanettemorton]

Avoiding lifestyle creep is key to being able to build an emergency fund.

[FromMikaWithLove]

“Don’t buy what you can rent” I love that! This was a great video. I just obtained a 47% salary increase but still plan on living on the salary I had before that. I plan on stashing the extra money to buy my first home in about two years, and start saving for grad school. Just subscribed ❤️

[shoshanakirya-ziraba]

Become comfortable with looking poor in front of strangers.
The key to financial freedom ❤🙏

[Greenapul]

I love your advice to plan “fun” spending. An extensive focus on saving without fun can lead to a large impulsive purchase during a moment of weakness. Fun spending is like dieters allowing themselves a cheat day once per week.

[ezralimm]

My expenses have remained the same between 25 and 35. Never owned a credit card. Dont eat out much - and buy anything from the supermarket I feel like. Buying those expensive steak/cherries/soap at the store without having to think about it is a small flex I enjoy. Never had a car loan. Never had comprehensive car insurance (just third party) as my car is worth less than a month's income haha. Save on the BIG things and enjoy the SMALL things.

[lindaadams]

Having less is sooo much more... Easier to maintain and have money at the same time...😊 ❤ ❤

[brokemoneyfabulous]

This is good advice!

Though, I have to say....if I get a promotion or a raise, I will not be continuing a side hustle. I will be reclaiming that time to relax and spend time with family & friends

[lorettashum]

We Americans have this paycheck to paycheck addiction....deadly!

[sarahr.]

Thanks for mentioning that upgrading housing or transportation is not lifestyle creep if what you have isn't meeting your needs! I feel a little bad about how much money gets spent on gas and car insurance, because when I only had one kid I took the bus everywhere and we didn't own a car, and that was so much cheaper. But now that I have three kids, it helps a lot to have a car. Not an expensive car (a 25 year old Honda), but cars in general are just expensive to maintain!

[mollynash]

This is VERY tempting. I'm debt free other than my house but about 6 months ago I got a new job and a decent increase in pay. I was very close to buying a new car which would have put myself into debt again. Luckily, new cars were in short supply at that time and they were getting more expensive so I decided not buy a car.

[Mimi]

Love this sis! With each raise I get, I increase my 401K contribution by 1%, and add a bit more to my savings contribution.

[kelseycoca]

this was super informative! I recently started a job where I make $50K a year but I'm still recovering from working a job where I made $35K a year but before that, I made $65K. when I was working that first job I was very aggressively paying down debts so my lifestyle was pretty similar to when I was making $35K but now I'm starting to enjoy the extra income since I've paid off so much like my car and some other larger debts and I'm trying to stay in track and SAVE! great video!

[m_martha_e]

Helpful and concise video. Being concise is a difficult thing to do!!! I am in my 30s and just now “ waking up” to the consequences of my overconsumption as a way to self-soothe. The psychological burden is heavy, so I hope more people take the awareness of life style creep to heart ❤️ At the end of the day, it’s not good for your health.

[georgeimmanuel]

People who rent expensive bags, cars, to look appropriate at expensive higher-ups events, are actually smart.

[Gypsi]

I feel like satisfying your wants in moderation is key. I’m not sure if others can relate but I go through spending periods. There are months where I don’t want anything and months where I want the entire world lol

[transitengineer]

I agree with this 100 percent. Before buying something, I say to myself 1st) Is this a need or a want? 2nd) How is this going to improve my life or another persons life (if a donation has been requested)? 3rd) How will getting this today, effect both my short term and long term financial goals? Only if it passes all three steps do, I then pull out my charge card (which, as you stated should always be paid in full at the end of each month).

This is because, true value comes from my relationship with the Holy Spirit, and not from other people and material things.

[debbied]

Love this content and I hope young people are listening to you. I find my poorest friends have so much stuff. I have a friend that buys a Gucci purse just because she feels she deserves it but she buys it on credit and has very little income.