Money Coach Shares The 10 Warning Signs The Cost Of Your Lifestyle Is Creeping Up On You
Just because you can afford to spend more, doesn't necessarily mean you should.
Voronaman | Shutterstock.com When you finally get that sought-after promotion or secure a new higher-paying job, it's all too easy to fall into the trap of lifestyle creep, overspending after your income increases. You can afford more but take your spending too far, often without even realizing it — it just creeps up on you. Things that were once luxuries feel like necessities, and all of a sudden, you are drowning in debt.
Vee is a money mindset coach who has been writing about financial topics for two decades and uses her social media to help viewers save, budget, invest, and overhaul their finances. "Lifestyle creep is very interesting because it's not always in your face or blatant," she said in a recent TikTok. "Sometimes it can be very subtle, which is why it can easily fall under your radar." She shared ten indications of lifestyle creep to be aware of.
Here are 10 warning signs the cost of your lifestyle is creeping up on you:
1. You only buy name-brand groceries
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The price of eggs has been a hot-button topic as of late, but it's far from the only grocery item with an outrageous price tag. Inflation and the high cost of living have certainly affected groceries, and it seems nearly impossible to visit a supermarket without spending hundreds of dollars.
If you're only buying name brands, the damage is even worse. According to Nasdaq, "the difference between store-brand versus name-brand groceries averages out to about 40% in total savings." A lot of the time, you're essentially buying the same product either way, only paying more for the big-brand name. So, if you outright refuse to consider generic, you may be experiencing lifestyle creep.
2. You pay full price for clothes
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As of July 2024, the cost of apparel in the U.S. had increased by 7.8% since January 2020, per the Consumer Price Index. Now is not the time to be ditching the sales rack in favor of expensive threads.
This point doesn't just apply to clothes, however. Vee said that if you are paying full price for anything that you would normally wait to go on sale, the cost of your lifestyle may be creeping up on you.
3. You frequently replace your electronics 'just because you can'
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Do you really need to purchase the iPhone 16 if you already own the iPhone 15? Probably not, but, it sure is tempting.
According to a study by Consumer Affairs, the majority of cell phone users upgrade their phones every two to three years. Not everyone, though — just under 12% upgrade their device every year and almost 5% do so every six months. If you fall into the latter two categories, you are probably experiencing lifestyle creep. Remember, just because you can afford something, doesn't mean you have to buy it.
4. You regularly take weekend getaways
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In 2024, 73% of Americans said they were "in desperate need" of a vacation, yet almost half said they could not afford to travel. Weekend getaways are a great way to satiate your need for a vacation without spending the big bucks. However, if you are jetting out of town most Fridays, you may be experiencing lifestyle creep.
5. You spend more on convenient services than what's 'reasonable'
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Maybe you pay for add-free Netflix despite also having Hulu, Prime Video, and Disney Plus. Perhaps you splurge on grocery delivery instead of heading to the store yourself or frequently order Uber Black just because you don't feel like driving.
These are prime examples of "spending leaks," which are small innocuous purchases that add up over time. They seem harmless at the moment, but they have the potential to drain your wallet, especially when many of the "convenient" services also include fees and tips. So, if you find yourself willing to overpay just to save yourself a bit of time or trouble, it's time to take a good look at your spending habits.
6. You don't bring a pre-packed lunch to work
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If you opt to buy lunch every single day, instead of packing food from home, the cost of your lifestyle may be creeping up on you. The Top Dollar blog used data collected by Numbeo and found that the average fast food meal costs about $8 while the average cost of an inexpensive sit-down meal is $15 before tip and without alcoholic beverages.
"By contrast, the average meal prepared at home costs around $4 for groceries," they explained. "Put another way, a $15 restaurant meal is about 325% more expensive than a $4 meal you prepare yourself." If you bring lunch to work, you could save yourself thousands of dollars by the end of the year.
7. You get food delivered often
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If you've started getting food delivered when you would usually go and get it yourself, Vee said you are likely experiencing lifestyle creep. Anyone who has ever ordered UberEats or DoorDash knows how quickly tax, tip, delivery, and fees can add up. Restaurants often hike up the price of the food on these apps, too.
Even a relatively cheap meal can easily become expensive. In fact, The New York Times reported that ordering food on a delivery app can be up to 91% more expensive than if you bought the meal directly from the restaurant.
8. You automatically say yes to expensive outings
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"Lifestyle creep can also sneak into your life," Vee said, "if you start to automatically say yes to expensive outings without really considering if it makes sense for you or if it's something that you would actually enjoy."
Carelessly spending money on outings you don't even care to attend is a glaring red flag for lifestyle creep. Tori Dunlap, founder of Her First $100K, a feminist finance platform, suggested those who may be experiencing lifestyle creep ask themselves a few key questions before swiping their credit cards — "Am I getting more joy out of the item or service? Would I be happier spending this money somewhere else?" Your answers may be telling.
9. You don't think you need a budget
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Just because your income has increased, doesn't mean you should ditch your budget! Rather, you should be adjusting it, because the more money you make, the more money you should save.
"Keep a close eye on your budget and savings goals," Business Insider advised. "Before a raise hits your paycheck, consider increasing your 401(k) contribution or setting up a new automatic transfer from checking to savings for your short-term goals." A budget also helps you keep track of your spending, so those pesky spending leaks don't drain your account.
10. You do no research before spending money
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"You might start ignoring price comparisons and you no longer do your due diligence before buying something," Vee said of those experiencing lifestyle creep.
Speaking to NPR, financial planner Paco de Leon advised creating a "buy list" to avoid impulse spending. "Put the items you desire on a list," he suggested. "Then, after a predetermined time (like a week or a month), if you still want that thing, go ahead and buy it." That gives you plenty of time to conduct the necessary research to ensure you're not overspending.
Still, remember that not all lifestyle creep is bad. Assuming you're saving money — and more than you were pre-raise — you are allowed to treat yourself without feeling guilty. Moderation is key.
Audrey Jaber is a writer and associate editor with a bachelor's degree in journalism.