Lifestyle Creep: The Sneaky Saboteur of Your Savings

It’s fall, y’all, and ghosts and goblins abound! There’s one that lurks around you, though, all year-round – and he is so sneaky, you may not have ever noticed. Let’s have a little chat about that sly little gremlin known as lifestyle creep. You know, that insidious phenomenon where you’re just living your best life, and before you know it, your spending habits have ballooned faster than your last self-care splurge.

Picture this: you land a great promotion, and suddenly your morning coffee isn’t just a simple brew—it’s a triple-shot, almond milk, artisanal creation whose daily habit costs more than a small car. You start buying organic kale instead of the regular stuff, upgrading your wardrobe with pieces that have more designer labels than your Instagram feed has filters. Suddenly, you're wondering why your savings account looks like it went on a permanent vacation.

So, what gives? It’s not that we don’t deserve a few luxuries—we absolutely do! The problem is that we’ve lost control and intention with lifestyle creep, which is the opposite of your goal to being purposeful with your values-based spending efforts. So, let’s kick that creep to the curb where he belongs and take back control – here’s how.

Most people have two types of bank accounts: 1) a checking account for bills and spending and, 2) a savings account for, well, savings. And most people have their paychecks and earnings deposited into the checking account. If they’re really on top of things, they’ve set-up automatic savings transfers from checking to savings on a regular basis.

But therein lies the problem. When you get a raise, that elusive extra paycheck in a month, or a bonus, that checking account balloons…and so does your spending. So, what if you just simply changed things around to having your paychecks and earnings go into your savings account, and then you set-up an automatic transfer to your checking account for the monthly spending you’ve intentionally and thoughtfully determined?

You will notice that after making this change, there doesn’t appear to be any difference. And that’s actually the beauty of it: you won’t even notice…at first. With this change, though, you are now set-up for success in making conscious, purposeful decisions about how much you want to spend, when you want to increase that internal transfer amount, to what extent, and when you can back it down. For example, when I paid off my car loan, I reduced my savings-to-checking transfer by the monthly car payment amount, instantly increasing my savings without ever noticing a change. When you get a promotion, you can decide how you’d like to reward yourself – maybe it’s an extra couple dinners out per month, maybe it’s a one-time shopping trip. The point is you get to decide! And when you’re in the driver’s seat, you’re now the one with power—not that creep.

Have questions? Reach out to me via email at lobrien@xmlfg.com.

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This communication is for informational and educational purposes only. No content or reference is intended to be a recommendation for the sale or investment in any product, strategy or service nor should it be perceived as individual advice.  Please seek the advice of a financial advisor regarding your particular financial situation. Visit xmlfg.com for more information.