We love blaming inflation for our empty wallets and sad bank accounts. 👛🪰 But what if there's something else going on? Be honest: are you spending to keep up with the Joneses? Balling out when you should be budgeting? 🧐
While higher prices are definitely a huge burden on our budgets, a little brat named lifestyle creep could be to blame for your disappearing paychecks. 💅
Here’s Five Fast Facts on lifestyle creep:
- 🍾 Champagne Wishes - As a person's income grows, they also tend to increase their spending. This is lifestyle creep. We often take on new expenses because we think we can afford them, but if we don't pay attention, it could get us into hot water financially. Extra nights out, a fancier car, and new fitness memberships could leave us strapped for cash if we're not careful.
- 🫧 Caviar Dreams - Some people also take on a more expensive lifestyle to keep up with societal expectations or to give the illusion they're part of a higher social class. While "fake it 'til you make it" is good advice in some cases, going broke in a pursuit of a rich life isn't always the brightest idea.
- 😑 The Raise Ain't Raisin' - According to the Bureau of Labor Statistics, as of November 2023, average hourly wages for nonfarm employees increased by 4% since last year. We're only just now beating out the 3% consumer price increase, which plays a huge part in cost of living. This could be why many folks who got raises don't feel like they made much of an impact.
- ⏳ Time Machine - If your lifestyle crept up on you this year, try undoing it with what's called the backwards budget. At the end of the year, take a look at your bank and credit card statements from the past 12 months. Separate your essential and non-essential items to see what you spent. This could be eye-opening, but getting honest will help you avoid bad habits in the new year.
- 🌟 Let's Be Real - If your lifestyle is a bigger creep than TLC's hit single, don't try to undo all of your bad habits at once. Start small and pick one category you want to scale back on. For example, maybe you'll decide to cook dinner at home each Friday night instead of going out to eat. Once you nail that down, aim for another goal. Starting small means you'll be more likely to stick to good habits without them being too overwhelming.
🔥Bottom line: Hey, big spender. Don't be so hard on yourself. Social media has made it super-tough not to play the comparison game. Just remember, some of these clowns take their pictures on fake private jets and FaceTune themselves harder than a Kardashian after a breakup. Spend your money on things that truly bring you joy, not what society tells you to chase.
Are you a victim of lifestyle creep?
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