Life Kit How to avoid 'lifestyle creep'
26 snips
Jul 14, 2022 
Paco de Leon, author of "Finance for the People," brings valuable insights into the phenomenon of lifestyle creep, where increased income leads to unrecognized spending hikes. He discusses practical strategies for maintaining financial goals amidst societal pressures, encouraging listeners to define their own paths rather than conforming to peer comparisons. The episode promotes mindful spending through techniques like creating a 'buy list' to resist impulse purchases, ultimately helping individuals align their finances with personal values and emotional well-being.
AI Snips
Chapters
Books
Transcript
Episode notes
Defining Lifestyle Creep
- Lifestyle creep occurs when increased income leads to increased spending, hindering saving and investing.
- This often happens subtly, leaving individuals shocked by rising expenses.
Examples of Lifestyle Creep
- Housing costs, particularly rent increases, contribute to lifestyle creep.
- Smaller expenses, like frequent lunches out, can also add up.
Mindful Purchasing
- Consider the potential domino effect of purchases before making them.
- Ask yourself what feeling you seek or want to avoid by buying an item.
