The Personal Finance Geek

Lifestyle creep is a slow and gradual increase in your spending habits over time. It can happen to anyone, regardless of their income or financial situation. There are a few reasons why lifestyle creep happens. One reason is that our spending habits tend to rise in line with our income . When we get a raise or promotion, we often feel like we can afford to spend more money. This can lead to us upgrading our lifestyle, buying nicer clothes, taking more expensive vacations, or eating out more often. Another reason for lifestyle creep is that we often compare ourselves to others . We see our friends and family buying new things, and we feel like we need to keep up with them. This can lead to us making impulse purchases that we can't really afford. Lifestyle creep can be financially dangerous because it can lead to debt and financial problems. When we spend more money than we earn, we start to go into debt. This can put a strain on our finances and make it difficult to save fo...