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Aaron and his wife earn around $200,000 annually, but they were buried in $785,000 of debt.
How can this happen?
Ramsey summed it up as more of a denial problem than a financial problem.
However, the couple was struggling to make ends meet and was sinking further into debt.
In other words, wealthy, urban households are going broke.
Lifestyle creep is a phenomenon that affects people after their income grows.
Whether its food delivery, home decor or subscription services, those costs will eventually creep up on you.
Aaron reported that after his income suddenly doubled, he and his wife began spending like crazy.
They assumed their new income was disposable and wound up more broke than before.
However, his wife didnt want to sell the property.
Lifestyle creep and denial can easily catch up to even the wealthiest consumers.
To avoid falling into the paycheck-to-paycheck cycle, consider these tips.
Control Your Spending
Theres a simple solution to lifestyle creep: budgeting.
Make amonthly and annual budgetto help keep your spending in check.
This rule applies regardless of how much you earn.
Sell What You Dont Need
Take a look at your households assets.
That includes the big things like your property and cars and smaller things likefurniture, collectibles or appliances.
Dont hold onto assets just because you think you should have them.
Dont Worry About Your Image
Why was Aarons wife reluctant to sell their rental property?
Ramseys co-host explained that it was a pride issue.
Owning multiple properties and cars wasnt just fun for them it showed off their apparent wealth to other people.
Keeping up with impressions is a dangerous game.
Just because you earn a certain income doesnt mean you better act wealthy.
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