Decreeping the lifestyle

“I’m afraid it’s creeping lifestyle. Very tough to eradicate.” ~ my friend Robin.

So I’ve been back on my budget for 2022 and already I’m seeing some areas of improvement. The lifestyle creep is real but first, let’s look at what exactly is lifestyle creep and how to manage it.

I like Investopedia’s definition, Lifestyle creep occurs when an individual's standard of living improves as their discretionary income rises and former luxuries become new necessities. The rise in discretionary income can happen either through an increase in income or decrease in costs.

I’ve had more disposable income in the last couple of years because I haven’t gone anywhere. It’s the decrease in costs versus an increase in income.