Money Rehab with Nicole Lapin “Don’t Be a (Lifestyle) Creep! How to Use Your Raise to Build Wealth”
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May 15, 2025 Celebrating a raise? Beware of lifestyle creep, which can sneakily derail your savings. The discussion offers practical strategies to manage your new income thoughtfully. Discover the 50-30-20 rule for personal budgeting and learn to set effective financial goals. Understand how high-yield savings can work in your favor. Boring financial strategies are highlighted as pathways to wealth, reminding you that slow and steady wins the race. Plus, automation tools are suggested to keep your finances on track!
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Fight Lifestyle Creep With Budgeting
- Avoid spending your entire raise on increased expenses to prevent lifestyle creep.
- Allocate portions of your raise to savings, debt repayment, and necessities to build wealth.
Joe's Lifestyle Creep Story
- Joe upgraded from renting to buying a house when his income increased.
- Lifestyle creep was evident in his spending on suits and Disney passes as his salary rose.
Use the 50-30-20 Budget Rule
- Use the 50-30-20 budgeting rule: 50% on necessities, 30% on wants, 20% on savings.
- Apply this rule to your raise to keep expenses balanced and grow savings.