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Lifestyle creep happens when you (pretty much unconsciously) start spending more as your income increases. You start to see things you once considered luxuries as straight-up necessities – like dining out, getting food delivered, upgrading to the latest iPhone, or moving to a more expensive home. It often follows a raise or bonus, or if you’ve cut down expenses significantly, perhaps by paying off debt or downsizing living arrangements. When you’ve been doing it tough for a while, an improved financial situation can easily become the mindset of “I deserve this!” – and careful spending turns into casual indulgence.
