"Is Lifestyle Creep Secretly Draining Your Wallet?" đź’¸
Nov 30, 2024Breaking Free from Paycheck-to-Paycheck Living
For most of my life, I lived paycheck to paycheck. Even when I became a money coach and my income started to rise, I found myself in the same situation. It didn’t make sense—my income was increasing, but I wasn’t saving or getting ahead.
The culprit? Lifestyle creep.
Lifestyle creep happens when your spending grows as your income rises. Without even realizing it, you end up spending more on things you didn’t before—better restaurants, fancier clothes, a larger apartment. While there’s nothing wrong with treating yourself, this gradual increase in expenses can keep you stuck in the same financial rut.
I didn’t notice it at first, but my lifestyle was definitely creeping.
A Small Change That Made a Big Difference
About 10 years ago, I decided to make a simple change. I committed to taking $300 a month out of my account and investing it. I didn’t overthink it—I used a robo-advisor to automate the process.
Fast forward a decade, and that consistent $300 per month grew into $48,000.
It wasn’t a huge fortune, but it was a solid start. Plus, it was much better than leaving the money sitting in a savings account earning next to nothing.
Why Education Matters
Could I have earned more than a 6% return with better investment choices? Maybe. But the important thing is that I started—and that’s a lesson I share with everyone:
Start where you are, with what you have.
The next step is to educate yourself. Not all investment tools or strategies are created equal, and understanding your options can help you achieve better results in the long run. Whether it’s learning about different types of investments or finding the best robo-advisor for your needs, the more informed you are, the better your financial outcomes will be.
Take Control of Your Financial Future
Lifestyle creep is common, but it doesn’t have to keep you stuck. By making small, intentional changes and educating yourself about investments, you can start building a brighter financial future.
Ready to take the first step? Sign up for our course and learn how to take control of your money, break free from paycheck-to-paycheck living, and start building lasting wealth.
Who Are You With Money?
