Overspending has always been somewhat easy, but these days, it’s even more so. Although you might attribute that reality to terms like “funflation” and “money dysmorphia,” don’t overlook another insidious trend: lifestyle creep. Lifestyle creep might be a natural and expected phenomenon, but it’s not without its downsides.
To prevent such issues, HuffPost asked personal finance experts to explain this concept and share their tips for staving off the temptation. What is lifestyle creep? “Lifestyle creep refers to the fact that we often spend more money as our income rises,” said Kimberly Palmer , a personal finance expert at NerdWallet. “Lifestyle creep can happen as a result of a desire to ‘keep up with the [Joneses]’ where we see other people spending more so we do the same.
” As a result of this phenomenon, people may spend extra money on experiences and things they don’t need — like designer clothing, luxury cars or real estate. There are also less extreme examples across the spectrum. “You get a raise, and suddenly, you’re upgrading your phone, eating out more often, and splurging on vacations,” said Bola Sokunbi , the founder of Clever Girl Finance.
“It’s tempting to spend more because you feel like you can afford it or you might feel you deserve to treat yourself, leading to higher spending.” It’s only natural to want to improve your quality of life by purchasing nicer things or to feel drawn to the picture-perfect lifestyles y.