How Lifestyle Creep Helped Me Live Better, Not Worse

Have you ever noticed that the more you earn, the more you end up spending?

It’s a pretty common occurrence. Let’s say you’re making $2,000 a month and manage to save $200. Not bad, right? But when your salary jumps to $5,000, you’d think you’d be able to save more, but somehow, it’s harder to even save that same 10% of your income. Why? Because, as your income rises, so do your spending habits. Instead of saving, you might find yourself splurging on new clothes, fancy vacations, or upgrading to a bigger house.

This phenomenon is known as lifestyle creep, where as your income increases, so does your spending. It is also why it often gets a bad rep because the higher pay tends to give people a false sense of financial security.

This happened to me as well. But in my case, I didn’t see lifestyle creep as a bad thing.

You see, when I first started working, I had very little to my name. To stretch my money every month, I bought the cheapest of everything! I lived off instant noodles and mass-produced cream buns, and wore cheap shoes that gave me blisters and would cut into the back of my ankle. I was also living in a run-down rental flat. As the rental there was pretty affordable, many of my neighbours were loud college students who hosted parties that went on until the early hours of the morning. It wasn’t ideal, but it was what I could afford at the time.

But over time, things started to change. As the years passed, my work experience grew, and so did my salary. Though I didn’t notice it immediately, I eventually realised that my lifestyle spending had gradually gone up as well. I was spending more than I used to each month, indulging in what I had once considered unnecessary expenses.

I ditched instant noodles and bought better food, and ate out more often. Instead of the cheap shoes and PVC handbags, I became the proud owner of quality shoes and bags that were made from better materials. I also moved out of that noisy rental flat and bought a place in a quieter neighbourhood. These extra comforts cost more money, as you can imagine, but I felt much happier and healthier.

That said, I didn’t let these upgrades derail my financial habits. I still prioritised saving and investing each month, but I’m also willing to spend a little more for quality and comfort. I think the trick is to find a balance between upgrading my lifestyle but not losing sight of my financial goals.

So, for me, lifestyle creep wasn’t a bad thing. In fact, it allowed me to live a more fulfilling life – and isn’t that what we are ultimately working for in the first place?

This article is part of TSS Confessions, a weekly column where we delve into personal finance topics that are unscripted and genuine real accounts from people.