đź“Š LifestyleCreep
Why Your Raise Didn’t Make You Richer
Meet Alex. 🧑‍💼
It was a sunny Tuesday when Alex got the email: “Subject: Promotion.” The salary bump was huge—20%. Champagne was popped 🍾. Alex imagined a savings account overflowing with cash.
But six months later, Alex checked the bank app. It wasn’t overflowing. In fact, the balance was exactly the same as before the promotion.
“I make more money now,” Alex thought, confused. “Where did it all go?”
Alex’s “Necessary” Upgrades
The “Reliable” Car
Old one was fine, but this one has heated seats.
The “Spacious” Flat
Needed a home office (that is rarely used).
“Treat Yourself” Dining
Cooking is for people who aren’t managers.
The Invisible Thief: Lifestyle Creep
Lifestyle creep is the phenomenon where expenses rise to match income. It’s not usually one big purchase; it’s a hundred small upgrades that suddenly feel like “needs.”
When Alex got a raise, the brain said, “We have extra money!” But instead of saving it, the standard of living inflated to fill the void.
- Subscription services stack up.
- Brands shift from Generic to Premium.
- “Happy Hour” becomes a weekly ritual.
Where the Raise Actually Went
Visualizing the distribution of new income.
Income vs. Spending Over Time
Without a plan, spending hugs the income line tightly.
The “Zero Gap” Problem
Look at the chart. Notice how the red line (Spending) follows the blue line (Income) almost perfectly?
This is why high-earners can still feel “broke.”
As long as the gap between what you earn and what you spend remains zero, your wealth cannot grow. You are running faster on a treadmill just to stay in the same place. To get rich, you don’t just need a raise—you need a wedge.
The Solution: The 50/50 Rule
You don’t have to live like a monk. You just need a system.
Calculate the Raise
Figure out your new net monthly income increase. Let’s say it’s $500.
The 50% Save
Automatically route half ($250) to investments or savings immediately.
The 50% Spend
Guilt-free spending ($250) on that better car or nicer apartment.
Visualizing the Rule
This chart compares the “Typical” approach (spending it all) versus the “50/50 Rule.”
Notice that you still get to improve your lifestyle (the purple section), but you are also building a safety net (the teal section) that didn’t exist before.
The Millionaire Difference
It doesn’t look like much in month one. But let’s fast forward 10 years. Here is the difference between Alex (who spends the whole raise) and Sam (who uses the 50/50 rule), assuming they both invest their savings at a standard 7% return.
Ready to stop the creep?
The next time you get a raise, don’t just upgrade your phone. Upgrade your freedom. Remember the rule: $50 for you today, $50 for you tomorrow.
Start Your Plan Today