How to Reverse Lifestyle Creep: Regain Control of Your Finances and Priorities

Consider downsizing if lifestyle creep has led to significant upgrades in your living situation, car, or other high-cost items. Shutterstock

We can all fall victim to lifestyle creep at some point in our lives. Initially, it’s just a few small changes, such as upgrading your phone or treating yourself to a nicer dinner. Small splurges, however, can eventually become consistent expenses that gradually erode your savings.

Eventually, you may live paycheck to paycheck until you gain better control of your finances. Sometimes, you wonder where your money goes every month, regardless of your income increases. As such, lifestyle creep must be identified and reversed for long-term financial stability and freeing up time for what really matters.

So, let’s examine some steps to help identify lifestyle creep and actionable ways to reverse it.

Understanding Lifestyle Creep

When a person’s income rises, so does their discretionary spending. This is known as lifestyle creep, or lifestyle inflation. Usually, such increments are subtle and do not seem excessive. For instance, you might feel entitled to upgrade certain aspects of your lifestyle as your career progresses and your income rises. It could be a newer car, a larger apartment, or a more lavish vacation.