The Silent Thief of Your Pay Raise: How to Beat Lifestyle Creep
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- čas přidán 8. 02. 2024
- When looking into how to budget better and save more money, one of the best things we can do is examine our habits and see if we have unwittingly become a victim of lifestyle creep. In this video we'll discuss 6 ways to avoid lifestyle creep.
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Every time my Dad got a pay raise he increased his savings the same amount. He said he can live on current pay, so save all pay raises.
We did the same. Never saw A pay increase after about 5 years. He's retired now.
I turned all my raises for 18 years into my savings.
This works so well and is pain free.
Same for me throughout my career!
Wise man
I live in a 1385 square foot house. Raised 2 kids here and now just me and my wife. We remodeled the whole house for 30k with a good handyman. My family makes fun of me for living in a small house. But while they complain about high taxes and the cost to heat their 4000 square foot homes. I live comfortably below my means.
I couldn't agree more. We raised three boys in a 682 sq ft 2 bed/1 bath that we bought in 2007. I bought my 2008 Corolla in 2011 and am still driving it today.
Small paid for house here too. Wouldn't change a thing. I can clean my bathroom top to bottom in about 15 minutes. Some homes with spa bathrooms look wonderful until you have to clean them.
And then there are those of us who get a raise - in my case a Social Security increase - and immediately other organizations increase their fees, - homeowners insurance, car insurance, Medicare increase, HOA increases, Medicare deductible, etc. - so that what you hoped would be an increase is eaten up by all the other increases in costs. I think for most of us it is not lifestyle creep, but “organization’s greed creep“. I have always been one to set aside pay raises or increases in things like Social Security, and not use up that increase in my lifestyle, but the ability to do so in the current environment is virtually impossible anymore.
Well said Barbara! I'm also on SS disability & the twice yearly raises are taken by twice yearly rent increases. Even worse are the exorbitant increases across insurance, car costs, utilities, medical, food etc. I have no idea how people are going on holidays on such a regular basis 🏝
“At the end of the day we are not what we own, our true value lies in relationships,passions and how we make the world a better place! “ 👏❣️
Been there, done that. Now I regret it in my retirement. I'm living more mindful now.
I have watched real life friends and many CZcamsrs here as they get more income the houses get bigger and the cars r more expensive. Whewww. My hub and I stayed in our same little house despite our income increases. ❤
I agree but unfortunately recently the cost of living is increasing monthly : power, natural gas, garbage service, car insurance and property taxes have all gone up just when we were making great progress. Our cost of living raise just disappeared
Agree! Over here in Sweden, prices for food and most other things skyrocketed. High inflation actually lowers our income. Toilet paper gets 1-2 SEK more expensive every two weeks currently.
I know this might sound pretty extreme to most people but I remember being so ecstatic that I finally had income when I got my first minimum wage job in high school. Fast forward to now as a young adult and I'm working a corporate job making "decent" income and I still live the same way I did in high school (with some larger purchases naturally of course and a little more independent lifestyle). I was happy back then, I don't see why I need more income now to be happier! The savings goes towards the long term goals that matter and those I truly care about.
Keep up the savings! You will be so happy you did when you retire.
We did this too. Just lived on the old paycheck amount--- for close to 30 years.
I think with the cost of living and inflation very very few people can live even just the necessities on what they were paid 30 years ago
Wonderful message. After two years of wrestling my credit card to zero I am now putting money automatically into my savings account every month. Thanks for the help🐇❤️
Lifestyle creep is exactly what happened to me when I got a new job after finishing college. The only smart thing I did was sign up for payroll deduction to a 401K.
The higher my pay gets, the cheaper I become. I think because I'm getting closer to retirement and I want to make it come even FASTER. hahaha
I totally get where you are coming from. I can’t wait to retire but have 10 years to work . I am saving as much as I can so I can start the life I want 🎉
Me too! Maybe 13 for me. But yes, the freedom is all I'm after. I don't mind work, I just want to do the work I want to do on MY terms.@@mandyadams918
@@mandyadams918 same! I have probably 13-15 to be SURE, but I might be able to get out in 10. Just gotta be careful and have good market luck.
We did a little to no spend Jan & today we splurged for a pizza for my Hubby's bday & I actually felt guilty. I didn't tell him because I didn't want him to feel badly. We are going to do the rest of Feb & possibly the rest of the year on a little to no spend budget, except groceriesas needed. I know we have a huge purchase (a riding lawnmower, so we don't have to continue paying someone else to mow), so we're trying to be good in other areas. 😊
Another tip: set realistic, but difficult to achieve quickly, financial goals and track the progress against it. When the choice is eating out 5x a week, or eating out 2x a week and contributing more to paying off the mortgage earlier I find that I take more intentionality in the restaurants we choose, and we feel like we’re actually accomplishing more even when eating out less.
Sometimes plans don't work out. We were 2 months away from paying off our car. Since our rent has increased in the last 2 years, I was planning on saving most of the car payment & driving the car at least another year. Then our car was stolen. It was recovered but too badly damaged to repair. Our settlement was not enough to pay off a car since we are old & can't drive an old clunker. Back to making payments & our insurance has gone up even though it wasn't our fault.
That's awful. It's so frustrating when you plan things out well and it doesn't work out due to circumstances beyond our control. Your insurance going up is especially unfair. Maybe you can threaten to take your business to their competition? Good luck!
Yes to this! We used to be like this. Spending everything and then barely making it to the next month. And always wondering why there is nothing left to save. Now we pay us first right when we get our salaries. I also got a pay raise a couple of months ago and we increased our savings.
My husband will soon switch jobs and for a few months he will earn less. He has to finish a study first before they will raise is pay and we already talked about just living with less income for those two months, making them no-buy months.
Good luck with for your no-buy months 😊
Good plan!
@@lydiasalerno2320Thank you! ❤
lol. I haven’t had a raise in years. “Bad economy” 🤦🏻♀️🤷🏻♀️
Sounds like a bad job!! Economy has improved. That's an excuse. Change jobs.
Been looking since April. 🤷🏻♀️
I once had a pay raise that was just enough to put me in a higher tax bracket. I have worked a part time job and managed to not save the extra, like Joshua says here. Saving...it's important.
Dear Joshua, this is so sad and true. Also reminds me of something that seems to happen to people that start a business and it goes well. As soon as they start making money, it seems to be easy to get greedy, like, they just want more and more, and the worst part of it is when they start sacrificing important things like treat and pay the employes well and keep up with the quality of the product. Having a successfulp business should be about making money, of course, but also about being your contribute to the world by placing a quality product and making people that work for you feel good about working with and to you, I think.
I got a payrise and decided I will take more recreational leave to pay myself with me time rather than more work time.
More pay and more time off. Money doesn't buy you hsppiness. Time off does.
I set up a separate savings pot in my high interest account and any raises or bonuses go straight there without me even seeing it and I live happily on what was already coming in. If things are tight I can cut back on what I spend. This has all been about avoiding the lifestyle creep you are talking about here. I love the life I have, no interest in newer bigger better so I never feel like I'm missing out on anything. 🥰
I guess, I have to be thankful to my mother. She always taught me I deserved the worst, so I am not able to spend on myself for something nice.
They're ways to enjoy life more that don't cost more. Pursue that.
We still do our monthly budget on what my husband made years ago. Putting that 2,000 a month wherever it’s needed, emergency fund, new tires , etc .
100% agree! 😊
Thank you for all you do for us!! What a gift you and these videos are and we are so Fortunate !! Thank you again Joshua!!♥️♥️♥️
Outstanding series. Incredible approach to life. Things to always think about. Things to always reflect on. Beautifully communicated.
Well said, Joshua. Distinguish between wants and needs. That's definitely made a difference in my spending habits recently!
Been there done that. Lesson learned. Thank you for the great reminder. ❤ love your messages & vlogs.
Another great video Joshua - thank you for reminding us about what is important
Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal. For where your treasure is, there your heart will be also. Mattew 6:19-21
Thanks so much, to SEAT ando listen to your videos are a great help!
Happy Lunar New Year, Joshua
So good!
Bouffant on point,Sir!
“…Turning yesterday’s luxury into today’s necessity.” 🙌🙌
I like that tip to save and invest before spending.
❤ yes….
Hi Josh Maybe you can do a series on how to become a patron that best supports an individual. Or if anyone has clear understanding. I see millions of organizations and then so many who still don't have enough. I want my new savings to best lift up another
Breathing deep.
Just finished your book all that matters.
🇦🇺 Hello Joshua. Hope you are well.
@thebudgetingRT I found this video that also explains it while I went down the rabbit whole lol 😂
The scariest thing about lifestyle creep is that it can trap you into one job, one company or one career path. If you start making $150k+ and adjust your lifestyle to equal that, then you can only take jobs that pay that amount or more to sustain yourself. This stops you from being able to leave a bad situation, bad boss or change paths. Always give yourself the most options possible.
So true.
Stooopp why am I getting this video right after I splurged on earrings 😭
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Please one video about fitness guidelines
Beware of the "experience trap." I know far too many people who don't save because they've spent their money on trips and other entertaining experiences.
This is a sign that a major shift is about to happen in your life. All the money that you spent is going to come back to you multiplied and all of your dreams are about to come true.
You have a new shirt, still black though
Your video deserves to be recognized as a masterpiece of digital storytelling.