Lifestyle Creep Isn't the Problem

Lifestyle creep gets a bad rap...

It's often mentioned in a negative context - as if any increase in spending is irresponsible or something to be embarrassed about. That's not true.

I have clients who started working with me 10-15 years ago when they were just beginning their careers. They were raising young kids, stretching to buy homes, and living on virtually nothing.

Fast forward a decade: their careers have taken off, the kids are heading to college, and yes - they’re spending more.

But it’s not reckless spending.

They’re going on more date nights, taking an extra family trip, and outsourcing things that reduce stress and give them more time back. That's completely reasonable (and wasn't that the goal all along?)

Where lifestyle creep becomes a problem isn't the spending itself.

It's when the financial plan doesn't evolve alongside it.

When money was tight, saving 10% for retirement may have been the best you could do. The life insurance amount you chose may have reflected a very different lifestyle and set of obligations.

Now that you earn more and spend more, those numbers probably need to change because the goalposts have moved.

I get it - I don't want to go back to living the way I did starting out in my 20s, either. My lifestyle has crept, and I want it to stay that way.

Just make sure your financial plan is keeping up.

Linda Rogers, CFP®, EA, MSBAis the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout Virginia Beach and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firmoffering one-time comprehensive financial planning and ongoing impact-focused investment management in Virginia Beach and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.