The article discusses the phenomenon of lifestyle creep, where increases in income lead to proportional increases in spending, often resulting in little or no change in savings. While indulging in luxuries is normal, unchecked lifestyle creep can adversely affect financial well-being. With examples like frequent takeout or needless subscriptions, the article emphasizes the risks of making superficial changes that lead to an unsustainable lifestyle. Notably, data shows nearly 30% of high earners struggle to meet basic expenses, highlighting the pervasive impact of lifestyle creep on personal finance.
We've all been there. You get a pay rise, and one month later, you find that your bank balance looks no better than before. Welcome to the frustrating world of lifestyle creep.
The problem is that we can be unwittingly sucked in by lifestyle creep in a way that adversely affects our ability to save.
Worryingly, these instances can snowball into an unfulfilling cycle. In fact, Starling Bank data suggests that almost 30% of people earning £100k don't have enough money for essential expenses due to overspending.
It's clear that no matter how much you're earning, lifestyle creep can cause you to struggle when it comes to making ends meet, let alone saving for the future.
Collection
[
|
...
]