We’ve all been in that situation: you receive a salary increase at work, and you start indulging in minor luxuries: the occasional Uber ride to the office, pilates classes even after exhausting your ClassPass credits, that pricey cleanser you’ve had your eye on for weeks. Whether it be under the pretense of “nurturing our inner child” or giving in to “little treat” culture, many of us have stopped trying to save up for a home deposit in favor of consistently maxing out our paychecks each month. This trend – where your spending rises along with your income – is termed lifestyle creep.
NielsenIQ’s Spend Z report anticipates that Gen Z will experience the most rapid growth in spending power, reaching an estimated $12 trillion by 2030. Ironically, however, we also possess the lowest levels of financial literacy, with approximately 50 percent of us acknowledging that we lack confidence in managing our finances.
No one is exempt from the comparison game, but social media makes the frequently online population increasingly vulnerable. “When we are constantly bombarded with content displaying aspirational lifestyles through consumer purchases, it’s easy to feel as though our current living conditions are insufficient, or that we’d find fulfillment if we had more,” explains author and psychotherapist Eloise Skinner to Dazed.
Although it might seem challenging to reverse lifestyle creep without feeling defeated or diminishing our quality of life, acknowledging that it’s actually happening and realizing we can change our situations is the vital first step. Here are additional recommendations.
Some individuals still opt not to monitor spending or budget, fearing the confrontation with the scale of their extravagance. Nonetheless, go ahead and download that budgeting app. Examine all your bills and receipts while you’re at it. “Review your monthly spending – particularly your subscriptions – and identify which expenses truly align with your values and bring you satisfaction,” advises Alex King, founder of personal finance platform Generation Money, to Dazed.
For example, a fitness club membership may be crucial for our health and wellness objectives. Yet, it’s true that the equipment for a hobby collecting dust in a drawer or the unused items from a ten-step Korean skincare routine can be reduced or even entirely eliminated. The goal isn’t to deprive ourselves of simple pleasures but to evaluate what genuinely enhances the quality of our lives.
What we regard as non-negotiable is sometimes influenced by habit or convenience: we often find ourselves checking out immediately rather than leaving it in the cart for further consideration. “I’d suggest establishing a slow spending practice: allow yourself a 48-hour period prior to making any purchase exceeding a certain amount,” King recommends. He notes that this pause not only ensures all purchases genuinely contribute value but also provides time to explore more affordable options.
FOMO is a significant element that contributes to lifestyle creep, especially if the pending purchase is linked to a fleeting microtrend or a friend’s influence. 26-year-old Basil recognized that his savings had stagnated due to continuously treating his friends at the latest dining establishments. “I used to socialize with them every month, but ever since I recognized how challenging it’s become to sustain my lifestyle, I now only see them once every quarter,” he tells Dazed. “But it boils down to asking yourself, ‘Is your priority to achieve a specific goal by a certain age? Or would you prefer to enjoy life in the present?’ Realizing that you can’t have it all is crucial,”
Impulsive spenders frequently become their own most significant obstacles, conceding to every internal struggle. For such extreme cases, bold actions are often required. “These could involve logging out from all shopping platforms, unsubscribing from email lists, and deactivating autofill payment methods – any barriers you can introduce makes spending more difficult,” advises King.
As many places only accept card payments, bringing cash everywhere could also be a wise choice. This establishes a clear limit on your expenditures and mitigates the risk of incurring debt. “It’s a different experience having to part with cash: if you keep swiping your card for every transaction, you never actually witness the money leaving your wallet. You may end up believing you have more than what you truly possess,” cautions Annie Cole, financial coach and founder of Money Essentials for Women.
Furthermore, keep in mind that external factors don’t always need to define what constitutes a desirable life. Cole advises reclaiming our influence and redirecting our focus: “taking a break from social media, creating a peaceful ambiance, and spending time with friends who don’t pressure you to live beyond your financial means.” Over a third (36 percent) of Gen Z and millennials report having a friend inclined to lead them towards overspending.
This is why it’s been crucial for 24-year-old Sam to ensure that her friends act as her accountability partners in her path towards frugality. “I attempt to organize gatherings in larger groups so I can engage with everyone simultaneously instead of individually, and I favor low-cost activities such as inviting them to my home so none of us have to spend on anything,” she shares with Dazed.
Unwise financial choices driven by fear, insecurity, or guilt can suggest an emotionally complicated relationship with money. It’s possible that this scarcity mindset arises from prior experiences or cultural values. Sam was raised on a very strict budget that didn’t allow her complete financial independence. “Once I started earning a decent wage, I found myself yearning for all the things my younger self desired and deserved. One of the unnecessary purchases I made was a part of a Barbie dream house, which now sits unused in my room. I suppose I just enjoyed the feeling of satisfaction I experienced after the purchase,” she reflects.
In an era where even the most mundane activities can be relabeled as self-care rituals, “we sometimes find ourselves acting in ways that are misaligned with our actual circumstances, as we might feel justified in pursuing a larger, more abstract goal,” Skinner suggests. “It’s essential to evaluate the genuine reasons behind our indulgences and explore ways to fulfill those without unnecessary spending.”