Did you ever get a raise, bonus or tax refund, and at the end of the year you have no idea where it went?
“Lifestyle creep” happens to most of us. It’s so easy to add a bit to your lifestyle every year without even realizing it, especially if your income rises.
Lifetsyle creep is a problem because:
- It eats up your raises and your extra cash.
- You get used to a lifestyle that you can’t sustain, because it is not part of your retirement plan.
- It’s one of the main reasons most people have to make a big cut in their lifestyle when they retire.
There is a solution. Review your cash flow and retirement plan every year. Make a conscious decision to let them both creep up together.
I was recently interviewed by Joel Kranc, who has written an excellent article on this topic. Read it here: