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Original poster

How to resist lifestyle creep?

34 replies

Wplion · 14/08/2023 21:26

What are good ways to resist lifestyle creep?

I am about to embark on a career that could be very lucrative. However, it is also a very stressful career and one which people say others become trapped by the golden handcuffs. For example, they let lifestyle creep take over and need the high paying job to pay for the lifestyle they become accustomed to.

I grew up in a fairly poor household. We never went without but everything was low quality.

Already I can afford nice things, and I am frugal. I like 800 thread count sheets, but buy them second hand on ebay. But how do I stop lifestyle creep? What are measures to ensure I don’t get sucked into keeping up with the Joneses

OP posts:
lovewoola · 14/08/2023 21:27

do you have dc?
are you a homeowner?

Original poster
Wplion · 14/08/2023 21:29

No dc, and we don’t want to buy where we currently live (London).

OP posts:
fivetriangulartrees · 14/08/2023 21:32

Put as much of your salary as possible into your pension so you can't spend too much, but it's still benefitting you.

MissLucyEyelesbarrow · 14/08/2023 21:33

fivetriangulartrees · 14/08/2023 21:32

Put as much of your salary as possible into your pension so you can't spend too much, but it's still benefitting you.

And another big chunk into savings by an automatic transfer each month- so you don't have to think about it. If it's not sitting in your current account, you're much less likely to spend it.

fivetriangulartrees · 14/08/2023 21:33

And if you're eligible, set up a standing order into a LISA for when you are eventually ready to buy. That will keep some of the money unspendable.

CuriousGeorge80 · 14/08/2023 21:34

The key one is not taking on a massive mortgage or big debt (eg car finance). That makes you dependent on the wage. Anything else (clothes, holidays, where you buy groceries etc) is really just a lifestyle choice that you can decide to change any time. Then it’s about willpower!l

64rabbits · 14/08/2023 21:37

It depends what your financial goals are?

isthistoonosy · 14/08/2023 21:39

Buy a buy to let, it used your wage and create an income to free you from the job later on.

Save, save, save - so you can at least know you can retire early if you want to. Something like the FIRE movement can keep you motivated.

daisychain01 · 14/08/2023 21:41

The best way to avoid lifestyle creep is to think carefully before making any expenditure that you wouldn't have made if it wasn't for your new job. I don't think it's necessary to buy cheap low quality everyday items like household items. If anything, being able to make small subtle changes to enhance your QoL is the whole reason you've worked hard to put yourself in this position.

just don't be tempted to start splurging out on big holidays, big extensions, big cars on mega amounts of finance, and certainly not as a knee-jerk reaction to your new-found prosperity. Don't make any big decision, let yourself settle into your new role and see how things go. Give yourself time to process the change iow. Keep your feet on the ground, show gratitude and enjoy the fact you will have a helluva lot more financial security than a significant proportion of this country.

lovewoola · 14/08/2023 22:12

Well no dc & not buying an expensive property will reduce spending. Max your pensions

BarbaraofSeville · 14/08/2023 22:43

What are the expensive things you are concerned about buying? Do you tend to want things that you can't afford?

Definitely not getting trapped into a big mortgage, car payments etc is probably a good start but I'm not sure you're going to suddenly start wanting to spend more, have more expensive things or pay full price for 800 TC sheets if you don't already want to do/buy those things. That seems to be a spender/frugal saver personality trait that's unrelated to how much money you have.

The spenders spend all their money, no matter how much or how little they have, but the savers don't start buying things they've never wanted, more like that their savings just grow faster.

Of course you could put a big chunk of your extra earnings away in savings and investments, and keep back a proportion that you will allow yourself to spend, should you feel the need - you could put an amount in a spending account, and if you want something expensive, you can have it if you have money in the account.

Then with healthy savings, you always have an out, if you decide the big job isn't for you, or you just fancy a change or retire early.

sansou · 15/08/2023 00:13

My tip is to to distribute most of your extra income into ISAs/mortgage overpayment and pension. Feather your financial cushion whilst the sun shines since you never know Same with any bonuses - if most of your extra income is not there to access with ease, you won't spend it. An offset mortgage may well suit your purposes - it definitely suited us to have accessible savings working for us.

ThirtyThrillionThreeTrees · 15/08/2023 01:06

My very first boss told me to never make sure than every payrise I got was split a third to enjoy and two-thirds towards, savings, debt reduction or pension, unless I was under serious pressure re living expenses.

I have broadly stuck to it and think it works well. I don't miss what I don't have and hopefully it gives me greater options later in life. I would flitter it away otherwise.

MikeRafone · 15/08/2023 13:49

when you receive your salary each month - take out what you didn't receive before, put this away in savings account (or add 10% and then put the rest away), investments in stocks, ISA. First though plough some extra into your work pension, as that is tax free and although you may put in £100 extra each month your net pay will only decrease by £70 for example approximately - so worth while with the savings.

Each time you receive a pay increase - halve the pay increase by 50% and place that into savings

Appleblum · 15/08/2023 14:00

I wouldn't necessarily avoid a huge mortgage as I see it as 'forced savings'. As long as the house is sensible (meets your needs), you like it, and the mortgage is affordable, go for it.

Heurgh · 15/08/2023 14:11

Brandalley and TKMaxx sell high thread count bedlinen at a fraction of the original prices. Treating yourself to brand new bedding in the sales won't set you on the slippery slope to the workhouse.

khakitrousers · 15/08/2023 14:19

ThirtyThrillionThreeTrees · 15/08/2023 01:06

My very first boss told me to never make sure than every payrise I got was split a third to enjoy and two-thirds towards, savings, debt reduction or pension, unless I was under serious pressure re living expenses.

I have broadly stuck to it and think it works well. I don't miss what I don't have and hopefully it gives me greater options later in life. I would flitter it away otherwise.

Interesting - I’ve always worked on similar lines. Payrises, bonuses, tax rebates always split 3 way - 1/3 to enjoy, 1/3 to pension/long term savings and 1/3 to mid-term savings (paying down mortgage, house renovations, moving house etc).

Careerdilemma · 15/08/2023 14:26

Accept some lifestyle creep is inevitable in a stressful job with long hours. If you working 60 plus hours a week you are unlikely to have time to hunt down bargains and will need to throw money at problems.

I've been in the City a long time and have a high six figure salary plus a six figure bonus. I couldn't do it without a lot of household help and accepting that I just need to buy stuff in a convenient way. In fact it is doing those things which allows me to hit bonus targets.

Merapi · 15/08/2023 15:05

Do you need an £8 handbag, an £80 one, or will you find that you need one that costs £800 because everyone you work with has a designer bag?

Nobody needs to spend megabucks on a handbag, just so they can keep up with the Joneses.

Keep telling yourself that sort of thing, and you won't go far wrong.

MissLucyEyelesbarrow · 15/08/2023 15:32

I've been in the City a long time and have a high six figure salary plus a six figure bonus. I couldn't do it without a lot of household help and accepting that I just need to buy stuff in a convenient way. In fact it is doing those things which allows me to hit bonus targets.

I agree. There is a balance to be struck. You don't want to spend money like a lottery winner but, equally, what is the point of working hard, if you don't allow yourself some perks, if only to allow you to focus on the job?

Wrapunzel · 15/08/2023 20:11

Have a look at YNAB budgeting software, there's a biggish thread on here about it.
It's envelope budgeting, so you only assign the money you have on hand right now. You assign it on payday/when it comes in and then have a much clearer picture of how much available cash you have and how much you've allocated to bills, future known expenses (Christmas or similar), holiday, long term goals etc.
I've used it for years and it's a great disincentive for spending as you have to take it from another category to fund something if you've not budgeted for it.

BarelyLiterate · 15/08/2023 20:20

Cars are the biggest waste of money ever invented by mankind. And I say that as a car enthusiast & BMW convertible owner.
Nobody needs anything bigger, flashier or faster than a Skoda. They even do 7 seaters for big families.
PCP finance schemes are designed to be a financial trap. Avoid them. Buy something a couple of years old which is still under manufacturers’ warranty and keep it until it becomes uneconomic to repair. Then repeat.

LucifersPain · 15/08/2023 20:32

Remember on average every £1000 you invest in a low cost global index tracker in your ISA typically doubles to £2000 in 7 years, doubles again to £4k in another 7 years etc.

Auto-saving/investing, maxmimise pension and LISA contributions first.

Traceyislivid · 15/08/2023 21:28

Don’t be friends with the Jones’

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