Lifestyle Creep or Lifestyle Growth? How to Tell the Difference
When your income goes up, it’s natural to loosen the reins—upgrading your seat, booking the nicer hotel, splurging on that dinner out. You’re working hard, and you deserve to enjoy the payoff. But at a certain point, it’s worth asking: am I spending in a way that supports my life—or just because I can?
That’s where the difference between lifestyle creep and lifestyle growth comes in.
Lifestyle creep is subtle. It’s when your spending increases automatically with your income, without much thought. It often shows up in convenience-based decisions or “why not?” upgrades that fall into the discretionary or luxurious category. Over time, this kind of spending can dilute your financial progress and leave you wondering why things still feel tight—even with a higher paycheck.
Lifestyle growth, on the other hand, is intentional. It’s when your money starts flowing toward things that truly improve your quality of life—experiences that bring you joy and purpose, purchases that align with your values, help that frees up your time, or investments that support long-term financial goals. It’s not about restriction; it’s about awareness. You’re choosing what to upgrade because it fits your bigger picture—not just because it’s possible.
July is a great time to pause and take stock. With summer spending in full swing and the second half of the year ahead, it’s the perfect moment to revisit your budget, reflect on how your habits are evolving, and reset your plan if needed. A simple mid-year check-in—especially after travel, events, or bigger expenses that oftentimes coincide with the summertime—can bring clarity and help you feel more confident about how you’re using your resources going forward.
If you’ve been earning more this year, recently received a pay increase, or are seeing income from another source, take a moment to check in: are your financial habits evolving with purpose, or drifting on autopilot? Are you directing that extra income toward what actually matters to you—whether that’s travel, flexibility, retirement, emergency fund? With this next pay increase, you may be interested in raising your 401(K) contribution and also adding to your travel fund– sit down and plan it out! Revisit your budget along with your cash inflows and outflows to ensure you are identifying any surpluses or deficits that may exist in your budget.
There’s no “right” way to spend your money—but there is a right way for you and your financial situation. And if you’re not sure where the line falls between enjoying more and overcommitting yourself, that’s where a good financial partner comes in, such as a financial professional. Let us know if you’d like to talk it through and build a plan that supports both your lifestyle and financial goals. Schedule a call here or reach out anytime at info@shermanwealth.com.