Life Kit How to avoid 'lifestyle creep'
52 snips
Sep 12, 2023 
Paco de Leon, author of 'Finance for the People,' provides insightful strategies to combat 'lifestyle creep,' the tendency to increase spending as income rises. Alongside journalist Ruth Tam, they discuss how societal pressures influence financial choices, particularly in your 30s. They share the significance of self-reflection, emphasizing a 'buy list' technique to manage impulse spending. By encouraging self-awareness and emotional fulfillment, Paco and Ruth highlight the delicate balance between enjoying life and maintaining long-term financial goals.
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Lifestyle Creep Defined
- Lifestyle creep occurs when increased income leads to increased spending.
- This can happen subtly, making it important to be mindful of spending habits.
Subtle Creep Examples
- Paco de Leon gives examples of lifestyle creep, like upgrading apartments or frequenting expensive lunches.
- She emphasizes the seemingly small choices that contribute to the overall creep.
Emotional Spending
- Consider the emotional reasons behind purchases, asking yourself what feeling you seek or avoid.
- This self-awareness can help curb unnecessary spending driven by emotions.
