Lifestyle creep, also known as lifestyle inflation, is something that can happen before you even realize it. As your income increases so does your lifestyle.
Why is lifestyle creep dangerous?
When you receive the good news that you are getting a raise or a new job with a higher salary that means you are going to hit your financial goals faster, right? Not necessarily, in fact in most cases not. Your goals may even slow down!
For most people, as they receive news that they got a raise their mind instantly goes to all the places they can now spend the money.
First, we need to go out to a fancy restaurant to celebrate. Then we can finally “afford” to upgrade the car… which will lead to a higher car payment. It is so easy to fall into the trap of lifestyle creep and end up spending your entire raise and sometimes even more!
How to stop lifestyle creep?
As soon as you know how much your increased salary will be, it’s time to sit down and figure out where to allocate that money.
If you aren’t already on a written budget, it’s time to get on one! Here is my easy-to-use budget template with pre-populated formulas so get you started!
Open up your budget and come up with a game plan for the additional money you will be receiving each month. Whether your increased salary will be $100 extra a month or $20,000 extra a month, you need a specific plan for the money.
What are your current financial goals? Are you paying off debt, saving, or investing? Allocate your extra money to these goals and stick to your plan.
It’s so easy to increase your spending when you’ve received a raise but it’s important to make your financial goals top priority. Yes, it may not be as fun to make that bigger debt payment but think of how amazing it will feel once you are debt-free and then all the money you receive is yours to keep!
YouTube is one of the largest and most powerful platforms and you need to know how to use it effectively to inspire, connect and grow your audience. In this talk, 5-year YouTube veteran Kelly Anne Smith from Freedom In A Budget will break down the starting steps to develop a profitable YouTube channel, loyal following, and avoid YouTube burnout. Learn the exact strategies that Kelly used to organically grow her YouTube channel to over 40,000 subscribers and make over $5,000 a month.
If we are honest, it can be hard to save up every month. Many people live for their paydays and often spend every last penny out of their account. But, we all want to have a little extra money put to one side for those little luxuries. Things like holidays, weekends away, or just those gorgeous pair of shoes you’ve been lusting after for weeks. However, it’s easier to boost your income than you think. With that in mind here are some of the ways you can start saving each month. You will have a pot of gold saved in no time at all.
Don’t let the summer fun and distractions blow your July Budget! Here are seven things to add to your July budget!
Remember, budgets are NOT constricting but instead give you FREEDOM to be in control of your money, rather than your money in CONTROL OF YOU!
Are you looking to make some extra cash from home? Or maybe you hear all of your friends talking about their side hustles, and you want to hop on the bandwagon? There are hundreds of side hustles that you can find online, but it is hard to narrow down which ones are profitable and worth your time. Today I will be breaking down all of the best side hustles that you can right from your couch!
Productivity is important because it makes you get more done in a short time. It helps you to have some time you can spend on the things you love to do just like listening to the music.
For anyone who wants to be more productive, I’m going to share 5 super important tips that can help you to be more efficient with your tasks and targets.
I’m so excited about sharing these because I’m continuously trying to be more productive and make myself more efficient.
Are you curious about how much YouTubers make? Maybe you are looking to start your own YouTube channel, or you are just a curious person. Today I’m sharing my 7 Streams of Income From YouTube and how I make over $5,000 a month while still working a 9-5.
Be mindful of your friends
Another reason why lifestyle creep can be dangerous is our friends and the people that we hang around. Don’t fall into peer pressure.
If all of your colleagues upgrade their car when they make partner, don’t feel like you need to as well.
At the end of the day, you and your family have your own goals and they can make fun of you all day long. You are the one that will be so much happier with no car payments and maybe even a paid-off house!
Don’t stop there! Keep growing your income.
Just because you received a raise at work doesn’t mean that’s all the money you can make. Have you thought of picking up an online side hustle?
Here are 147 side hustle ideas that you can make money from home. I bet you have some skills that you didn’t even think you would be able to monetize!
I'm no longer struggling to pay bills.
Have you ever received a raise so that you are no longer struggling to pay bills but then find yourself no longer making progress on your goals?
Unfortunately, it is so easy to stop tracking your spending or working your side hustle because you no longer “need” to. But this is a huge trap because it can result in making zero progress on your financial goals or even going backward because you get too comfortable and start creeping t going into the red at the end of the month.
Don’t let this happen to you!
More Ways To Save:
Here at Freedom In A Budget, I am all about saving money! Here are some of the EASY ways that I save money:
• Fetch Rewards is a free grocery savings app that rewards you just for snapping pictures of your receipts. That’s really it. Free gift cards on groceries on thousands of products every day, no matter where you get your groceries. Just scan your receipts and get gift cards from places like Starbucks, Target, Ulta, Applebees. Use code QHKBH to earn 2,000 points ($2)!
• Rakuten/Ebates: Rakuten is my to go way to earn Cash Back from over 2,500 stores like Macy’s, Amazon, Sephora, Walmart and much more. Join Rakuten today for free, and you’ll get a $10 Cash Bonus to get you started! Every three months, you’ll get a Big Fat Check in the mail or a PayPal payment just for shopping.
• CIT Bank offers high-yield savings accounts that provide a safe, secure way to grow your savings.
• M1 Finance is an easy to use brokerage platform that allows you to invest in Fractional Shares and auto reinvest!
• Budget Templates: Excel budget templates with pre-populated categories and formulas to keep you on track with hitting your financial goals.
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