You’ve finally gotten a well-deserved promotion. Congrats! Now, you buy more expensive stuff, eat out more instead of bringing your baon, and have more out-of-town trips.
Pero kahit may pay raise ka na, you feel like it's only just enough to cover your monthly expenses. ‘Anyare?
Hello to lifestyle creep. This is when higher income meets higher but uncontrolled expenditures. Yung dating akala mo ay luxury, ngayon casually afford mo na.
Lifestyle creep can erode your finances if left unchecked. Kahit mas malaki ang sweldo, mas nahihirapan kang mag-budget, lalo na ang mag-save. What drives it are lack of budgeting habits and spending discipline.
What can worsen the effects of lifestyle creep is having a reward mentality—yung feeling na you deserve to spend on better things. This is not necessarily bad as long as may natitira pa rin para sa ipon and other financial and life goals mo.
Pwedeng hindi ka fully aware na you’ve been spending more kahit malaki ang kinikita mo. You can try these few steps to help you control your urges and start becoming better with your hard-earned money:
Spend more, save more – Match how much you spend with how much you can save. Kung gumastos ka ng PHP 10,000 on a new wristwatch, then maglagay ka rin ng same amount sa savings account mo.
Automate your savings – Kapag payday, let your bank automatically put money into your savings account. Whatever is left is what you will be using to spend. This reduces time and effort to manage your money.
Invest in financial products – Maraming investment products, lalo na sa banks, na pwedeng paglagyan ng extra income mo. These include time deposits and bonds. Read this article, “How to make your money work for you”, to learn more about investing.
Make it a social project – Pwede mo ring i-promote sa iba ang money-saving concepts mo! For instance, encourage your family members to bring home-cooked meals for gatherings.
Regularly check your financial health – Build habit of checking your financial health every so often. Ito’y para malaman mo kung may kailangang i-adjust sa spending and saving goals mo.
It’s not wrong to spend more if you are earning more. Ang mahalaga ay you are managing money thoughtfully para magkaroon ka ng peace of mind at ma-enjoy mo lalo ang pinaghirapan mong raise!
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Disclaimer: This article is for general information purposes and does not constitute formal financial advice. Always do further research before making financial decisions and seek professional advice from a certified personal finance counselor. For more information, read the Earnest disclaimer here.