This is going to be one of the hardest topics yet to cover at a very high level and also my first mention of FIRE in my writings (financial independence retire early). My goal is just to inform you of two choices and get you rethinking, especially if you feel like you don’t have choices and are stuck in your current financial position. I am by no means claiming to be an expert on the topic or to get into the HOW in this post. I have just dabbled with both lifestyles mentioned and I feel like there are not enough people (especially women) who are thinking about or providing information on the topic..so looks like you are stuck with me. 😜
The above picture is the best way I could summarize the concept of lifestyle creep. For now, as mentioned, this is just to introduce you to the topic, so I have a few stats and thought provoking questions to hopefully do so.
First..the stats tell an alarming story. I recently read in this USA Today article https://amp.usatoday.com/amp/34378157 that the average household is bringing in around $75,000 annually, and of that, they are spending 90% of it, which equates to $67,500 outgoing and only around $7,500 extra annually. (which the article states a lot of this is going towards interest payments on consumer debt). This breaks down to $5,625 in expenses each month and $625 extra. That doesn’t leave much wiggle room and helps paint a picture as to why people aren’t putting anything or very little towards saving, investing, emergency funds and retirement. 😳
Essentially pointing out that people are living a paycheck to paycheck lifestyle. I don’t know that this was a surprise to any of us, but it may be a surprise that people are making the choice everyday with their actions and spending habits to live this way. Disclaimer that there are people living in poverty, so for the sake of my post, I am referring to the middle class mentioned above.
Now on to the questions. Feel free to answer in comments if you want to share, or just answer to yourself or as an internal conversation or with your significant other. Keep it real because denial is a great way to protect yourself from the truth right now, but long term in fact it just ends up hurting you more.
1) Are you living paycheck to paycheck like the scenario mentioned above?
2) Have you noticed that no matter what you do, you just can’t get ahead?
3) Do you receive regular raises or have you changed jobs to make additional money over the course of your career, yet you aren’t seeing a difference in your monthly budget after expenses because they always seem to match what’s coming in?
4) Do you ever pay attention to how much you spend on conveniences like pre-made food, someone to mow your lawn, someone to clean that big house, someone to wash that new car, someone to groom your dog, someone to do your hair/nails/makeup, etc because you are too busy working to do these things?
5) Have you ever wondered why things are like this for you and probably a lot of people you know, yet it’s still a taboo topic to discuss money, so everyone just keeps working harder and staying in the vicious cycle mentioned above?
6) What will happen if you change nothing and keep following this path?
Please reference the above picture as you are going through these questions to see if lifestyle creep has found a way to creep into your life. Remember..be honest.
Next, know that there is another option. As mentioned above, lifestyle creep is a choice and I’ve said this so many times on purpose. So many think they have no choice unless they make more money and this is far from the truth.
Lifestyle creep is a path that many in our society have walked and not challenged until recent years. Here are some questions to ask yourself and see if you’re one of those ready to challenge the traditional path and choose a different way.
1) What upsets you the most about always being broke and living paycheck to paycheck?
2) How has constantly feeling stressed from working so much and not having any money to show for it affected you?
3) What are your values and what are you spending your money on? Do they line up?
4) What are your passions and what do you dream about doing?
5) What could change if you have an open mind and put in the work, I mean really put in the work, to change your current financial path and mindset? Think of one quick and easy way you can change today.
6) What will happen if you start to live a lifestyle designed by you instead of others?
As mentioned, a lot of people have started looking at the above stats and questions, and are starting to make the decision to customize their lifestyle based on their own unique values, not what society tells them to value. Spoiler alert..it’s not through making more money as mentioned above..it has never been about that. It’s about a lifestyle of being content with only those things that bring you value. Luckily, it usually don’t cost anything at all, just the basics needed like food, shelter, experiences and none of the extra crap. 😊
Don’t get this lifestyle design twisted with a life of going without, because it’s actually the opposite of that. You have room for so much more when you let go of stupid shit.
Well..shocker..I have lots more to say but I’ve said enough for one day. What are your thoughts or questions on the two different paths mentioned above?