‘Lifestyle Creep’ Isn’t All Bad: 3 Things I’m Happy to Spend More on Now That I Earn More

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

As my income has gone up, I’ve been happy to increase my spending on a few key purchases. Keep reading to learn how lifestyle creep can be good. 

Over the past few years, my income has increased as I’ve grown my small business.

Many financial experts warn that as you earn more, you’ll spend more so you may not really find yourself improving your long-term financial situation that much.

Spending increases that tend to happen with income increases are often referred to as lifestyle creep. And, it is undoubtedly true that it can be bad to start spending more lavishly because you have more money rather than investing in a brokerage account or other wealth-building assets.

But, I don’t believe lifestyle creep is necessarily bad in all situations. In fact, there are three things I am absolutely delighted to spend more money on now that I’m earning enough to do it.

1. Household help

Hiring someone to clean my house was one of the first things I did when I had disposable cash. And as I’ve begun to earn more, I’ve added hours for my housekeeper. She now comes three mornings a week.

This may seem excessive, but my housekeeper is the world’s most wonderful person who makes my life easier in a thousand ways. She watches my kids while I walk my dog, she turns my car around for me every morning so I can get down my steep driveway easily (I’m not a great driver), and she waters my plants when I travel — in addition to doing all our dishes, laundry, and routine cleaning.

The reality is, hiring help is a great thing to do with your money. You’re buying back your time, which surveys have shown makes a meaningful difference in promoting happiness. You’re also eliminating hassle from your life. Writing my check to my housekeeper each week makes me smile every time because I think of all the extra hours of my life I’ve bought back by doing so.

If you’ve increased your earnings and are considering what to do with some of your extra cash, consider the tasks you really dislike. Whether it’s cleaning, grocery shopping, mowing lawns, or something else, seriously consider whether you should pay someone to do it for you.

2. Vacations

Vacations are another thing I’ve been delighted to spend more on. I take more vacations and costlier trips because I can. I’ve made great memories by increasing my vacation spending and I’ve had some amazing once-in-a-lifetime experiences that will stay with me forever.

Studies have also shown that people end up happier when they buy experiences, not things. You get to enjoy the planning process, enjoy the actual event, and enjoy the memories of it, so you get a triple bang for your buck.

3. Expensive linens

Finally, the last thing I’ve increased my spending on is bed linens. I used to buy whatever sheets and blankets I happened to find on sale. Now, I have a down comforter that costs more than I care to admit as well as linen sheets that are absolute heaven to sleep on.

This may seem silly too, but think about how much of your life you spend in your bed and ask why you wouldn’t want to spend some of your money to make that time more pleasurable.

Be reasonable with your lifestyle creep and you’ll end up better off

Now, my list of things I spend more money on as my income increases may seem strange to you — and you may have many other things you’d rather spend on. And there’s nothing wrong with that.

If you work hard and increase your income, you deserve to get some extra pleasure by doing so. That’s the point of money. You don’t want to let lifestyle creep eat up every penny of your extra earnings, however. Make sure you’re doing all the right things first, like saving for emergencies and saving for retirement.

But once you have those basics taken care of, take the time to consider what splurges will add the most value to your life — then indulge in them if you can afford to. Do so without guilt, because as long as you’re taking care of the essentials first, your money is meant to improve your life.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More