Do you find yourself throwing your savings plans out the window when a night out comes up or when an influencer showcases the latest “must-have”? If your income isn’t keeping up with your spending, you might be experiencing something called “lifestyle creep.”
Lora Rowley, a personal finance expert at Starling Bank, suggests that while it’s great to treat yourself occasionally, those little splurges can really add up. Here are some useful tips from Rowley to help you manage lifestyle creep and save more in the long run:
1. Recognize FOMO (Fear of Missing Out)
It’s easy to feel like everyone else is having the time of their lives. However, remember that social media often shows just the highlight reel. Rowley reminds us, “No one shares the boring meals or quiet nights in.” If you notice you’re spending more with certain friends, suggest more budget-friendly hangouts or consider low-cost activities like a nice walk. Be honest with your friends about your savings goals; they might want to cut back too.
2. Track Your Spending
Start observing where your money goes. Most banking apps show your spending habits by category. Look for direct debits and subscriptions you no longer use. Question whether you’re enjoying value from things like streaming services. Also, pay attention to emotional spending; if you shop to feel better after a tough day, think about healthier ways to cope.
3. Categorize Your Spending
Try sorting your expenses into “traffic light” categories. Think “green” for essentials, “yellow” for occasional treats, and “red” for areas where you shouldn’t spend. If possible, create separate savings to budget for small indulgences. Remember to be kind to yourself; if you overspend, view it as a chance to reset, not as a failure.
4. Consider a No-Buy Period
Some people benefit from a no-buy period where they refrain from non-essential purchases. While a no-buy year might seem daunting, you could start with a no-buy day each week. Make a plan that feels manageable for you. This can help you redefine what you truly need versus what you want.
5. Add Some Friction to Spending
Make it harder to spend without thinking. For instance, remove your card details from online shops. Paying with cash instead of card can help you pause and consider whether you really want to make the purchase.
These simple yet effective strategies can help you regain control over your finances. The goal is to enjoy life without compromising your financial health.
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Finance,UK,Budgeting,Consumer Behaviour,Mental health,Personal finance,Savings,Spending,Spending Habits
