Think about the last time your income increased.
Maybe it was a promotion or a new job.
Perhaps your business grew more than you planned.
What did you do with the extra money?
Did you stick it away in savings?
Did you pay down debt?
Did you invest in yourself or your business?
Did you do what most of us do when they get more money, slowly increase our lifestyles until we need another bump in pay?
Did you know this is so common that it has a name?
It’s called “Lifestyle Creep” and it occurs “when an individual’s standard of living improves as their discretionary income rises and former luxuries become new necessities” (Investopedia).
I’ll be the first to raise my hand and admit that I’ve had lifestyle creep with almost every increase in income I’ve ever had. Early in my adult life, Lifestyle Creep ate up every penny of every raise and promotion.
As I became intentional with our finances, the Lifestyle Creep slowed. We stopped it in its tracks last year when we chose to invest our profits back into our business rather than give ourselves a bonus.
Trust me, it wasn’t a fun decision, but I can’t say our lives are any worse off. We’ve had a great year making lots of fun memories. Our needs and many of our wants are met. And we have options (which, if you don’t know by now, is something I deeply cherish).
Most people I talk to don’t have an income problem. The biggest problem most of us have when it comes to money is that we aren’t intentional with it.
When you aren’t managing your money, an increase in income will inevitably lead to an increase in expenses.
To put it simply, you’ll spend it.
Your new lifestyle will start to feel “normal” and before you know it you’re back to feeling like you don’t make enough money.
And thus the cycle of feeling stuck and without options continues.
You can decide today to stop that cycle.
Are you in?
Drop a comment or emoji below if you’re ready to break the cycle!