Why Lifestyle Creep is Mostly a Myth
Do you ever feel like you’re constantly being warned about the dangers of lifestyle creep? The idea that if you start earning more, you’ll inevitably spend more, and before you know it, you’ll be trapped in a cycle of overspending and financial stress. You may have also heard it referred to as the “hedonistic treadmill” because even though you get more money, you’re always in the same spot. It’s a prevalent theme in personal finance, with many experts advising against raising your spending after an increase in income. But is lifestyle creep truly a significant threat to your financial health, or is this concern exaggerated? If you’ve ever wondered how much you should worry about lifestyle creep, then this article is for you.
I got my hands on a data source that records the income and spending of the same set of households over time. So instead of looking at income/spending snapshots at one point in time, I can see how households change their income/spending over time. I can see how much U.S. households increase (or decrease) their spending after an increase in income.
~Nick Maggiulli, Of Dollars and Data
In this article, Nick Maggiulli explores the real impact of increased income on household spending by analyzing data from the Panel Study of Income Dynamics (PSID). The data reveals that for most households, spending doesn’t skyrocket with higher income. Only a small percentage of households significantly increase their spending after their income rises. Maggiulli’s analysis shows that the majority either maintain their spending levels or increase them only slightly, debunking the exaggerated fears of lifestyle creep. The article provides a data-driven perspective on why lifestyle creep is less of a problem than commonly thought, encouraging readers to understand the nuances and actual risks involved. By highlighting the realities and myths surrounding lifestyle creep, Maggiulli offers a refreshing and reassuring take on managing personal finances.
So You Failed in Your Monthly Budget, Now What?
Are you tired of feeling defeated every time your monthly budget falls apart? It’s a common struggle that many of us face, especially when unexpected expenses crop up or we give in to the temptation of spending beyond our means. But instead of letting financial missteps derail your progress, imagine turning those setbacks into powerful learning experiences that propel you toward your financial goals. If you’ve recently been struggling with self-doubt after missing your budget, you might want to check out this article that provides practical steps to help you bounce back from budget failures and get back on track with confidence.
f you’ve failed in your budget and are feeling guilty – step 1 to making it better is giving yourself some grace. Remember: it’s a learning process. Just like a toddler taking their first steps, you are also taking your first steps toward a better financial life for you and your family. It won’t happen perfectly, you’ll make mistakes along the way, but it’s what you do after those mistakes that really matters.
~Sarah Brumley, Lemon Blessings
In this article,Sarah Brumley offers a compassionate and practical guide for overcoming the disappointment of budget failures. Through a blend of personal anecdotes and actionable advice, Brumley emphasizes the importance of giving yourself grace, identifying the reasons behind the budget breakdown, and implementing strategies to prevent future mishaps. She encourages people to learn from their financial mistakes and persistently pursue their goals. Key points include understanding the root causes of overspending, making necessary adjustments, and staying committed to long-term financial objectives. By sharing her own experiences and lessons learned, Brumley provides a relatable and motivating perspective on navigating the ups and downs of personal finance.
Long-Term Disability Insurance Is a Necessity… and a Scam
Have you ever wondered if your financial safety net is truly as secure as you think? Imagine facing a sudden disability and realizing the long-term disability insurance you counted on might not be as reliable as promised. For many, this scenario is a harsh reality. Long-term disability insurance is often touted as a critical safeguard, but what if it’s more of a myth than a safety net? If you have an “open season” coming up at work and need to make a decision about long-term disability insurance you’ll definitely want to check out this article.
Of all the catastrophes we insure against, disability is the most statistically certain. A human body is magnitudes more likely to become disabled than a California home to burn up in wildfires, or a Florida home to be swept away by hurricanes.
~Lauren Torres (aka Kitty of Bitches Get Riches)
In her detailed and impassioned article, Lauren Torres (aka Kitty of Bitches Get Riches) delves into the murky world of long-term disability insurance, revealing both its necessity and its significant flaws. She explains the concept and importance of long-term disability insurance, only to highlight how many policies fall short in providing adequate coverage. Through a blend of personal anecdotes and hard-hitting facts, Kitty exposes the limited and often misleading nature of these policies, especially when juxtaposed with government-provided Social Security Disability Insurance (SSDI). The article underscores the high denial rates, the substantial reduction in benefits, and the eventual cutoff of coverage, painting a bleak picture of private long-term disability insurance. While acknowledging that these policies might still be beneficial in some cases, Kitty ultimately argues that for many, they are a costly and unreliable safety net.