Watch out for lifestyle creep. As we start earning more, most of the time, we start spending more. Then that becomes our new normal (or baseline spending). We expect to always be able to afford this new and “improved” lifestyle.
But what if when you earned more, you kept your same lifestyle and saved the difference? You’re already used to living on your existing paycheck, so why not continue to do so and invest the extra income? If you’re able to do this, you will become much wealthier, much more quickly than you expect.
Buying “things” won’t make you happier. Going on spending sprees gives you a temporary satisfaction, but it is fleeting. Soon you’ll become used to whatever object you purchased and it will no longer give you joy. Why spend extra to try to fill whatever void you feel that is lacking?
Let’s try a thought exercise for a minute…Remember the first big boy/big girl job you had? I remember when I came out of college and made $35k at my first job. I thought I was rich! It’s funny to think about, but it’s true. And the thing is, I was happy making that much (or little) money. It proved that I can be happy with far less than I make now.
Times and circumstances have changed, but your mindset regarding money and material objects should not. Don’t fall into lifestyle creep. Be content with what you have. Understand the difference between a need and a want. Be smart with your earnings – make sure that you’re always investing some (make that money work for you), giving some to others (tithing/charity), and enjoying some for yourself (spending on experiences with loved ones). Focus on living a great life surrounded by those you love, and who love you, and don’t worry about buying “things.” Because it is not the things that make you happy…happiness comes from within. And if you are able to find it, you will live a great life.