Lifestyle creep, or the idea that your comfortable baseline gets higher with the more you spend outside your means, well, creeps up on you. So how can you avoid it from lurking in the shadows every time you consider using your credit card? Here are six ways to prevent lifestyle creep while keeping your finances intact.
Know (And Trust) Your Budget
If you don’t already have a budget, make one. If you do and you’re worried about lifestyle creep, re-evaluate your existing one. Use budgeting apps or spreadsheets to track your income and expenses. Set clear limits for categories like dining out, entertainment, and shopping. And remember, a budget isn’t a prison; it’s more like a safety net. You can still enjoy life while keeping your finances in check
Say No
Sometimes, the right answer is no. Saying no to unnecessary expenses is a superpower when it comes to lifestyle creep. Chances are, you don’t need the thing, and you know that, so don’t give in! When a friend invites you to a fancy dinner that’s way outside your budget, decline—even if you want to go. Why? Because its outside your budget. You can always suggest a more budget-friendly option instead of outright saying no. But either way, if there isn’t room in the budget, it isn’t happening.
Keep Your Eyes on the Prize
What are your financial goals? Maybe you want to save for a down payment on a house, pay off student loans, or finally afford that trip you’ve been talking about for years. Whatever it is, keeping your goals front and center can help you resist the allure of lifestyle creep. Put your goals somewhere you can see them every day. And everytime you get the urge to splurge, remind yourself of what it would feel like to go on that trip.
Don’t Compare Yourself to Others
Comparing yourself to what others have is a recipe for financial ruin. Focus on your own journey; you never know: the people you could be envious of might be up to their eyes in debt. Your financial stability is more important than having the newest smartphone or a car that makes you look cool. Because nothing is cooler than having an emergency fund when you need it most!
Limit Your “Fun Fund”
Life is just too short to deny yourself all pleasures. But here’s the catch: you need to set a limit on your “fun fund.” This is the money you allocate for dining out, entertainment, and other indulgences. This is an important thing to have, but it’s also something you need to keep in check. Stick to your fun fund, and once it’s gone, it’s gone.
Think About Your Purchases Before You Buy
Before you make any purchase, especially a big one, take a moment to reflect. Ask yourself: “Do I really need this? Or do I just really want it?” Pausing and breathing can prevent you from impulse buys that people often call “retail therapy.” It’s not therapeutic; it’s a one-way ticket to lifestyle creep. If you give yourself time, you’ll usually find the urge fades, and you’ll save your money for something more meaningful.
