Avoid this subtle financial trap 👀💸

[AdviceWithErin]

In real life, lifestyle creep isn’t this obvious. Usually it’s veryyyy gradual and subtle. And it happens to all of us - from people making $50k to $50M!

You have to learn how to manage money so it doesn’t manage you.

And if you don’t know how to manage your finances, you can make all the money in the world & still go completely broke (see: why over half of lottery winners end up broke).

This isn’t meant to say you shouldn’t upgrade your life as you make more.

Yes, while some folks are out here buying fancy handbags, watches, boats, houses, and cars…

Others are spending on things like healthier food for their children, an apartment in a safer neighborhood, paying down debt, etc.

The most important thing is to ✨know✨ where your money is going! Trust me, it’s painful at first to sit down with your bank account, but you’ll feel we better knowing where you stand!

You got this 👏🏼 #lifestylecreep #personalfinance #money

[PhDFlopping]

20% raise every 2 years? Where is this fantasy company? 😂

[andreamorey]

I was worried this was happening to me but I realized what was actually happening is I was buying gas without checking my bank account, buying necessary groceries without checking my bank account, going to the doctor's appointments I needed....not buying beyond my means, just finally catching up to my bare minimum needs. I hope to someday make more than I need to survive lol

[estera]

Yes this is so true! Dont buy more than what you need for a decent life. You will just get to live like you have lots of money later, but for longer!

[RIBill]

Best strategy is to take 100% of your raise and put it into your 401k until you max it out. After that, put it into your emergency fund. Once that's fully funded, put it into a post-tax investment fund. After THAT, you can improve your lifestyle.

[soy]

nahhh this pissed me the fact that people get a raise and just immediately want to spend more money is mind blowing

[punkyskunky]

Note that this doesn't apply if you're poor enough
Basic quality of life improvements like buying a car to begin with, getting appliances that will make your life easier, moving out of an apartment that is just bad for you or even just finally being able to afford doing a hobby that makes you happy is not financially irresponsible
If I could afford to move out of my parents house I would immediately
I don't care if money would be tight not living with my mother would help my mental health substantially

[DubloDuck]

Finally, a person who actually helps me understand how the heck money works, without using some random big words no ones ever heard of lol
thanks for that👍

[ShadowKick]

I have the opposite, I'm very frugal and when I got money I didn't use it, I kept on living like a pauper for a good while. Only affording basic necessities, cooking in large batches of inexpensive stuff, never going out and so on. I missed out on so much and my health deteriorated because I'd never go to the doctor or buy medicine, I ate so little I got weak. Ended up in the hospital with the doctor telling me that if I don't make a change I'm going to die.
Made for a good wake up call. Now I'm healthy at least.

[toonybooper]

For me, lifestyle creep is being able to afford my medication and dentist appointments 🥴

[forbiddenwar]

Treat yourself, but also treat your future self. They deserve it too

[booperdooper]

Thank you. I hope you're well. Honestly you should be proud of yourself with how you've been helping people.

[LegacyStacker]

Hi Erin! I agree, retirement isn't an age, it's a number! 😎🏆You know I'm subscribed!

[pcsurgeontheoriginal]

Good advice as usual but it was hard to predict how much costs would creep. Cost creep overtook my buffer

[hayleyemma]

I was fortunate to be on a good salary when I first graduated. Just above the median. Even with multiple raises since then, I still budget the same as I did with my original raise. It allows me to put all the extras into a savings account for the items I want to save up for!

[Heather_H.]

Right now I just wish I could pay all of my bills and not live paycheck to paycheck. I’d love to have to worry about lifestyle creep and saving for retirement 😅

[LottieBerry]

I noticed that some of my happiest friends are living a middle class lifestyle on an upper class income. People who are financially responsible know that this is the dream. These friends live a truly quiet luxury life. Instead of flashing their money around with expensive cars and big homes. Their children are in all the extracurricular activities and weekly Starbuck runs aren’t putting a dent in their pocket.

[nancyrat]

Honestly it doesn't even matter what the video is about, Erin's "you got this" always helps

[faithhuebert]

I cannot tell you how much I appreciate you and your content. You are such a gem. What a legend

[KateT]

I WISH i had this "problem".