Lifestyle creep is a term to describe the increase in spending upon making more money. It can be easy to do. You never had extra money to buy nice things before and now you do, which can lead to a spiral of poor money management.
A new, higher-paying career can be exciting, but it is important to remember that there are ways to treat yourself without breaking the bank. Here are some suggestions for conquering the lifestyle creep that can appear when you begin your new role.
It is easy to get overwhelmed with your appearance when preparing for a new job. Many new employees get their hair styled bi-weekly and even go get facials more often than ever before, although all of this is not necessary. Instead of spending money to get this done by the fanciest salons in town, consider investing in your own tools to DIY your look every day.
5 Star Restaurants
When you and your co-workers are all making the big bucks, it can be easy to want to go out and eat at the finest restaurants each night. It is okay to treat yourself to a nice meal every once in a while, but it is poor money management to do it nightly. Suggest to your colleagues that you all should hit up some less expensive spots.
Getting an Expensive Item to “Fit In”
It can be very tempting to go out and buy the designer bag that the other people in your office have. While it can be fun to buy one or two designer handbags, it is unnecessary to buy an expensive bag just to “fit in” at work. If you are set on getting a particular item, consider finding it second-hand.
Many workers who begin making the big bucks feel the need to upgrade every aspect of their lives, including their homes. Don’t move to a luxury apartment that will have you living paycheck to paycheck once again. Focus on saving your extra money, rather than spending it all on rent. If you feel the need for a change, consider rearranging your furniture.
Oftentimes, when workers get a new position, they feel as if they need a nice wardrobe. In many cases, this is most likely true. Dressing nice does not equal spending hundreds of dollars on one dress. Don’t max out your credit card on a new wardrobe and instead consider finding like-new workwear secondhand.
If you find yourself getting the lifestyle creep, you are not alone. Try to remember that a high-paying job doesn’t mean limitless money. Keep a great credit profile and plenty of savings to set yourself up for a fantastic financial future. To get more help with your credit profile, contact a professional via CreditRepair.