“By closely examining your spending habits, you can ensure that you’re living within your means — and staying on track with your financial goals!”
— Melissa Houston
What’s the most subtle, quiet, and insidious threat to your personal wealth? Lifestyle creep.
Lifestyle creep (also known as creeping consumption) refers to a gradual increase in your standard of living. It doesn’t have to be as drastic as moving to a larger house or condo! Lifestyle creep can include going on shopping sprees, eating out more frequently, indulging in more expensive brands, travelling more often, and more. These “small” regular expenses add up over time, and can sabotage your long-term financial goals.
People often fall into lifestyle creep after receiving a promotion, scaling up their business, or receiving an inheritance, but just as often it is fuelled by credit. As our income and credit limits grow, it can feel easy to justify these additional expenses — but if you’re spending your money (or, worse, creating more debt) on things that aren’t investments, you’re not building your wealth.
There’s nothing wrong with enjoying the fruits of your labour, as long as you’re smart and mindful about it!
In this episode, you’ll discover:
Highlights:
00:50 Intro
01:40 Welcome Daisy!
02:47 Effects of lifestyle creep & my story
04:52 Revenue & expenses
06:35 Reinvesting v. eroding your savings
08:01 Credit card fees & spoiled retirement plans
10:07 Strategies for avoiding lifestyle creep
11:10 Monitor your spending habits
12:03 Save money automatically
12:43 Create a realistic budget
13:18 Mindfulness & money mindset
15:45 Cash reserves & downturns
Links:
5-STEP PROFIT ROADMAP-https://melissahoustoncpa.lpages.co/5-step-biz-finance-roadmap/
She Means Profit - How to Get the Mindset of a Millionaire
She Means Profit - Misconceptions, Manifestation & Money Mindset
She Means Profit - Why Money Mindset Really Matters For Profit And Life Goals
Link to calendar (free 30 min consult call)
Main website 🡪 https://shemeansprofit.com
Offers 🡪 https://shemeansprofit.com/offers
Cash Confident Course 🡪 https://melissahoustoncpa.lpages.co/cash-confident-sales-page
What’s Your Profit Personality? (quiz) 🡪 https://www.tryinteract.com/share/quiz/62ddb2293d71af001892a3a9
Follow me on:
LinkedIn @melissahoustoncpa