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Are you a lifestyle creep?

BE AWARE OF THE LIFESTYLE CREEP – If there is one thing I learned during an entire decade of being in the world of fashion and lifestyle, it’s this: Never buy anything to just show off. Why? Because nobody cares.

Bill Gates bought himself a Porsche 911 during the late 1970s. His first car from his first cash windfall from being the owner of Microsoft. I want to know, what was the first thing you do when your wealth starts growing? Do you upgrade your lifestyle? Are you looking to buy the newest sports car? How about moving in to a brand new home? Adding an expensive Club Membership, a holiday getaway, tailor-fit clothes, or move your children to a top notch private school? I won’t blame you. I mean you worked hard for it, right? You deserve to enjoy the finest things in life once you become wealthy.

There is no stopping you from enjoying your new-found wealth, but if you already own a home, a car and your watch works just fine, why do you need to change it because your salary just increased or you just had a great sales year for your business? I mean, if you love your home, why do you want to upgrade it to a nicer neighborhood when your investment income rises?

The danger comes when you suddenly want to upgrade and want to have the best of everything. It’s called the “lifestyle creep” and it’s when you raise your expenditures and commitments to match your increased salary or business income. Being aware of this lifestyle creep will help you long term.

Lifestyle creep refers to the phenomenon where discretionary consumption increases on non-essential items as the standard of living improves. With lifestyle creep, luxury goods and discretionary spending become perceived awareness as a right to have and not a choice—as a necessity versus a want. Let me give an example of a person who is not aware of a lifestyle creep.

This is why majority of the lottery winners lose ALL of their wealth within a few years. I’m currently coaching a lottery winner (over PHP 150M in winnings) and every time the person wants to buy something significant, I have to make the person think long and hard. To ask what is the purpose and intention of buying so. If it’s too feed the ego or try to look impressive, it’s automatically a no-go. I provide a certain amount of money a month that can be used to spend on things that bring value to the entire family besides the basic necessities. The rest goes into various investments that generates long term income that makes sense.

Your spending choices and lifestyle should not show your wealth and desire to impress others. It should reflect your own NEEDS and VALUES. Know your intentions for buying such thing and it’s longevity. Keep your lifestyle in check by being aware when there’s a lifestyle creep occurring. To give an example, Warren Buffett who is one of the wealthiest people in the world, has not moved houses since 1958. He lives in the same house he bought for $31,500 and currently drives a 2014 Cadillac XTS by himself to work, every single day.

What I can tell you is this, money does not make a person better. It is not a magic pill or a magic wand. It amplifies a person for who they truly are. You give a person who is insecure more money, they become more insecure. You give a person who is charitable more money, they become more charitable. Money will not change a person, nor will it make you instantly happy. I work with clients who deal with depression, low self-esteem and so much emptiness, yet they are so wealthy. It’s not a sure thing. But I’ll leave this topic for another time. Being aware of your own lifestyle creep is all I want to emphasize here.

Do not fall into the trap of spending to cover your insecurities and your low self-esteem. You will definitely lose in the end. Be aware of your own lifestyle creep. We’ll talk about how to put it all together on the next one.

Why do we spend more?
Lifestyle creep

Book your 1-on-1 coaching session with me here: Coach Antonio

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What people talk 2 Comments

January 27, 2021 rhona

You may have heard of this before, but lifestyle creep is something you need to know and understand.

Lifestyle creep or “Lifestyle Inflation” occurs when your standard of living improves with your income rising. And what you might have seen as luxuries in the past are now becoming necessities in your life.

So as you start to generate more income, you actually slowly start spending more without really noticing.

Since you have more income at your disposal, temptations slowly peak your interest or you tend to buy more expensive items because you can afford to

January 29, 2021 Richelle Namora

Very inspirational ❤️❤️❤️

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