Are You In Danger of Lifestyle Creep? #Infographic

After getting the raise of your dreams and to be making more money to allow some serious lifestyle changes, it's often not all smooth sailing. While this may seem to be nothing but ideal, the likelihood for increased spending that comes with extra income can end up being a serious problem. Called “lifestyle creep,” this tends to happen when your spending increases with your income and expenses that were once considered luxuries suddenly seem to be necessary.

We’re tempted to spend more money as we make it for several reasons, including trying to impress peers, taking part in retail therapy for stress relief, and (literally) buying into the idea that having more money means more happiness.

The harsh reality is that your financial health can rapidly decline if your spending gets out of control- even if you’re making more money. Planning out long term money goals, seeking happiness outside of materialism, and automatically saving your extra earnings can help you avoid the pitfalls of lifestyle creep.




Source: turbo.intuit.com