What is lifestyle creep & how could it wreck my finances?

Lifestyle creep occurs when your standard of living starts to outpace your actual income. It’s generally related to making more without saving more — foregoing important financial goals, like establishing a proper emergency fund or saving for retirement, in lieu of buying a larger house, nicer car or luxury vacation.  

While it’s tempting to start spending any extra money you earn as soon as you, well, earn it, lifestyle creep can expose you and your family to a certain amount of financial risk. After all, there’s no guarantee that you’ll stay at a given income level. 

To prevent you from falling prey to lifestyle creep, also known as lifestyle inflation, we consulted Certified Financial Planners, financial advisers and other personal finance experts. Here are 38 ways to avoid lifestyle creep. 

For help with your personal finances, consider working with a fiduciary financial advisor. Find an advisor who serves your area today (Sponsored).