We have all been a victim of lifestyle creep so how do we avoid it?

We often celebrate when we get a raise. After all, we deserve it after working so hard. 

It’s basically a treat and self-reward. So, it becomes easier for us to forget about being thrifty for a while. We also get a reason to ask ourselves, “Is it want or a need?”

Especially when you see a gorgeous pair of shoes you really want. On rare occasions, this is entirely ok.

However, if you’re getting a pay raise and seeing this as an opportunity to add pricey coffee to your mornings. Eating out more with colleagues even without a special occasion. 

Getting that latest smartphone, then you may be suffering from a trend called lifestyle creep.

You might think that these are small things and don’t really cost much. Yet, if you calculate their overall expense in a month, you might be shocked at how much they’re taking out your income.

Today’s world also has a lot of small temptations with more restaurants, brands and gadgets.

With social media, we’re even more tempted to get all these things because posting what you just bought, shared plates or where you’re at has become a trend and a norm.

However, these habits and lifestyles are detrimental to our income and savings.

 

Here are 5 ways to avoid lifestyle creep snaffling your precious savings:

1. Superannuation Contributions

Employers take charge of submitting contributions for employees. if you are self-employed then you have to make the contributions.

Ensure that you submit and if possible, increase the contribution. It’s also advisable to make this a top priority along with your bills.

That way, you won’t be tempted to spend that money on other lesser important things. So that you will have more funds to retire on a lifestyle that you imagine.

2. Savings Account

Having a special savings account will keep you from spending extra money.

These accumulated savings could also help you in the future if you ever need spare cash or need to pay for something.

It is also advisable to have your account automatically deduct this from your income before you are paid so that you don’t see this money being invested.

3. Budget Planner

Track your expenses so that you know where your money is going and how much you’re spending. Even if you’re using a credit or debit card.

It’s recommended to keep your receipts and bin them at the end of the day. A budget planner like Wallet or Mint will also help you see which items in your daily expenses are consuming much of your money.

Then, you can decide if those items are really needed or if you can cut down on those.

More importantly, you can assign yourself a budget limit for specific daily needs so that you don’t overspend.

4. Avoid Using Your Credit Cards

Indeed, credit cards are convenient especially when you’re out of cash.

Using cash makes us realise how much we are spending. However, we can be more susceptible to spending and swiping small amounts with it especially using Paywave.

Many see the credit card as an unlimited source of money.

However, swipe too much, and you’ll eventually find your card reaches its limit pretty quickly.

5. Saving for a Goal

 One of the ways to encourage yourself from avoiding spending so much is to set up a savings challenge.

You can aim for an amount to achieve for a specific time. You can also set up a goal for a particular item.

However, this goal should be a necessity and justifiable. Really need a new laptop because your old one is not the latest version?

A laptop is a need for work and personal communication so it’s worth saving for and not because you need it.

Other ways to save to reach your goal amount is to conserve electricity by turning off lights and appliances, not in use.

If you’re working on your laptop in your living room, turn off your television.

Call the electricity provider and see what a different deal can save you. Check the phone and data plans to see how much you can save and get a better deal.

Check-in with your social pals and see what they managed to save and how they did it and set up a ‘savings buddy’ to keep you both accountable.

These are just a few ways where we can look at to avoid lifestyle creep into our lives but there are many other measures and options we can look at as well.