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With additional money, what formerly would have been considered luxuries are now necessities.
Rarely does someone go from making $35,000 a year to $400,000 a year overnight.
Cruze explains that lifestyle creep is dangerous when pitted againstsaving moneybecause it prevents people from investing or spending effectively.
Increased Fixed Expenses vs.
Setting Financial Goals
Be wary if your monthly expenses have risen significantly over time.
This could include higher rent or mortgage payments, utility bills and subscriptions.
Theres always room to edit or cut back.
Just because you’re free to afford something doesnt mean you need it.
Cruze emphasizes thatcurbing lifestyle creeprequires intentionality and discipline.
To help combat increased fixed expenses you’ve got the option to set specific financial goals.
This bang out of mindset can motivate you to be in saving mode rather than spending mode.
Frequently Upgrading vs.
Ask yourself if these purchases are truly essential or simply a response to havingmore disposable income.
Cruze would advise you to practice contentment and highlight the importance of being happy with what you have.
This throw in of gratitude can shift your focus from wanting more to appreciating what you already possess.
This mindset can also help switch your focus from yourself to others and motivate you to give back.
A budget is a powerful tool for managing your money.
Cruze advises making a plan forour extra incometo shape your future in a better and more responsible way.
Debt Accumulation vs.
Automated Savings
When your money moves are at a standstill it can lead you to makingpoor financial decisions.
Using credit to fund a seemingly wealthy lifestyle can lead to mounting debt.
This way, youre paying yourself first before you have a chance to spend the money.
She advises making adjustments that align with your financial goals, even if it means making temporary sacrifices.
Also, stop comparing yourself to others.
That is only likely to fuel lifestyle creep.
Cruze points out that social media often portrays a distorted reality.
The more you focus on your own financial journey, the clearer your path toward afiscally responsible futurewill be.
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