Lifestyle Creep! (...the silent inflation)

ADHD Money Talk

Lifestyle creep, or lifestyle inflation, is a real issue that can affect anyone - especially those of us with ADHD. When our income goes up, it's natural to want to spend more and enjoy life more. But if we're not careful, we can end up in a situation where we're making more money but have less saved. This can be a real problem when we hit a financial snag or want to retire. Suddenly, all those nice things we've been buying don't seem so worth it.
In this episode, we'll explore the issue of lifestyle creep and how it can affect people with ADHD. We'll also look at some ways to prevent or undo it.
Financial Stability Steps to follow:
1) Track spending
2) Have short-term goals
3) Revisit values
Track spending
To track spending, use a physical notebook to write down your expenses each day or download an app to help keep track. Whichever method you choose, be sure to be consistent in order to get an accurate picture of where your money is going.
In order to have short-term goals that will keep you motivated, it is helpful to tie them to a longer-term goal.
For example, if you want to save up for a down payment on a house, you can break down your goal into smaller increments, such as saving $500 per month. This will make the goal feel more achievable and will help you stay on track.
Finally, it’s important to revisit your values from time to time to make sure that your spending is aligned with what is important to you. If you find money is being spent on things that don't bring you true value, it may be time to cut back in order to save more.
Have short-term goals
Assuming the goal is to save more money and prevent lifestyle creep, one way to do this is to set up a savings system to automatically save a certain percentage of each paycheck into a savings account. This way, you are less likely to spend the money on unnecessary things and will have a cushion to fall back on in case of an emergency.
Another way to prevent lifestyle creep is to track your spending and be aware of where your money is going. This can help identify any dangerous spending patterns and make adjustments accordingly.
Finally, it is important to have short-term and long-term financial goals to keep you motivated and on track. Having specific goals to work towards will help you stay focused and avoid lifestyle creep.
Revisit values
If you're worried about lifestyle creep, one of the best things you can do is track spending. This will help you stay aware of where your money is going and help detect any dangerous or destructive spending patterns. You can also set up a savings system to automatically move savings towards your goals right off the top of your paychecks. This way, whatever hits your checking account is yours to spend.
Finally, remember to revisit your values periodically. What do you want your money to do for you? Provide safety, stability, independence, freedom? Ease your day to day stress? Or do you want to get your Chick-fil-A four times a week? Make sure your spending is aligning with your values.
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