Lifestyle Creep is the #1 thing that will keep you broke and kill your chances of achieving freedom. This is also known as lifestyle inflat...
Lifestyle Creep is the #1 thing that will keep you broke and kill your chances of achieving freedom. This is also known as lifestyle inflation and it's a problem that affects just about everybody in the world because the root of the problem is embedded in our DNA. Our modern consumer society has not helped with this either. It started as "keeping up with the joneses" and now it's like that but on steroids (More like Kepping up with the kardashians at this point). People are spending more on things that they don't need. Movements have been popping up like minimalism, FIRE movement, frugal living etc that employ budgeting, personal finance, essentialism, spending less, making more, saving money investing and much more and people are starting to become aware of the trap that we've gotten ourselves into Millennials specifically are effected by this problem. So I was doing some intense research on how to get people to smash that like button and stumbled upon a survey by careerbuilder that shows that 78% of workers in the US live paycheck to paycheck. This blew my mind, this means that over half of americans that are making more than the median household income in the US are still living paycheck to paycheck. How can this be when the average household income worldwide is less than 20,000 a year? And these stats are even WORSE for millennials. The culprit behind all of this is whats known as lifestyle creep, which put simply is the more you make the more you spend. And this is a trap that almost everyone falls into because it’s actually embedded in our DNA but in this video I’m going to show you exactly how to avoid this And if you dont think you or your family has been affected by lifestyle inflation then I want you to think about it, when you’re in highschool or college you probably don’t make much money so you also don’t spend much. You might go out to eat cheap food once in awhile but that’s about it. Then when you get your first job, let’s say you’re making $40,000 a year, you start to go out for drinks after work with your friends a few times a week, you start buying coffee from starbucks every morning, you start ordering out from uber eats when you get home because you’re too tired to cook. Then after you work hard for a few years you get a promotion and all of a sudden you’re making $65,000 a year You decide to move into a nicer apartment and get a nicer car. And all this time you’re wondering to yourself why do I never have any money left at the end of the month? This is lifestyle inflation and it happens to everyone. And that’s the first thing you need to realize is that it’s not just you, Instant gratification is hardwired into the DNA of every human, even the smartest and most successful ones And if you don’t believe me then look at basketball star dennis rodman who was reported as broke in 2012 after years of extravagance and wild spending. Or look at actor Nicolas Cage who spent money on a haunted mansion, private island, a collection of shrunken heads and a $276,000 TRex skull and went bankrupt in 2009 70% of lottery winners end up bankrupt within 5 years and 78% of retired NFL athletes are either bankrupt or under financial stress within 2 years of retiring. Instant gratification is wired into all of us and it doesn’t help that we are constantly bombarded by different excuses for spending money. Digital marketing experts estimate that we are exposed to 4000 to 10,000 advertisements every day. In our modern consumer society it’s easier than ever to find things to spend our hard earned money on, but if you think this is a problem that affects us in modern times then think again because Thomas Jefferson, founding father, author of the declaration of Independence and third president of the united states and best known as the guy on the $2 bill spent half a million dollars a year on wine that left him penniless when he died. Also consider the fact that the average modern american lives a more lavish lifestyle than louis the 14th So how do you avoid lifestyle creep? Focus on the important things. Get out of debt, save money, achieve goals, master personal finance, avoid making financial mistakes, invest money, get an emergency fund and much more that will be explained in the video. Less
