Have you ever been tempted to trade up to a slightly fancier home? Do you feel the urge to sell your perfectly serviceable car so you can buy something newer and flashier?
If so, you’ve been a victim of lifestyle creep.
This malady strikes when an increase in income causes you to ratchet up your lifestyle and spend more simply because you can. Lifestyle creep might feel like fun in the short run, but it’s one of the deadliest destroyers of long-term wealth.
If you let lifestyle creep run wild for years — or even decades — you can jeopardize any hope of a comfortable retirement. Fortunately, the following steps can stop lifestyle creep in its tracks.