Lifestyle Creep
Beware of Lifestyle Creep
My grandfather always told me to “live on last year’s income” – basically saying if your income increases, it doesn’t mean that your expenses should as well.
Today this phenomenon is defined as lifestyle creep.
Lifestyle creep happens when expenses rise in step with income. You get a raise, a bonus, or access to liquidity from your HELOC through The Shred Method™, and suddenly, the little luxuries—nicer restaurants, upgraded cars, more vacations—become the new normal. While these purchases may feel deserved, they quietly erode your ability to build real wealth.
More Money, Same Happiness?
Research backs this up. A study by Daniel Kahneman and Angus Deaton found that happiness levels plateau around an annual income of $75,000 (adjusted for inflation). Beyond that, more money doesn’t necessarily mean more happiness—it just means bigger expenses. Even a newer study by Matthew Killingsworth suggests that while happiness can continue rising with income, the increase is marginal compared to the financial security that disciplined spending brings.
How to Avoid Lifestyle Creep
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Define Your Financial Freedom Number – Set a clear goal for what real financial security looks like for you, not just what you can afford today. For Shredders, we look at that based on two numbers: 1.) how much do you need to live comfortably each month? and 2.) How much passive income do you currently generate?
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Automate Your Wealth Building – Instead of letting extra income disappear into lifestyle upgrades, direct it toward investments, savings, and debt payoff. These could be Phase 2 and Phase 3 type investments within The Shred Method™ framework.
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Delay Gratification – Before upgrading your lifestyle, ask yourself: Does this bring long-term fulfillment, or just temporary comfort? Remember, you’re playing the long game here. We can create really quick results, but the magic comes when you follow this consistently for years.
Your ability to control lifestyle creep is what will separate you from those who look wealthy and those who are wealthy. Stay disciplined, stay shredded, and let your money work for you—not against you.
We want to let you know that we have implemented office hours for some of The Shred Method™ Team members. You now have the opportunity to join a Zoom room with one of us and have your questions answered during the week without having to wait for a meeting or the next Q&A.
Here's the official schedule for office hours, along with the links to join the Zoom rooms:
Adam Carroll: Monday 4-5 pm CT
Nathan Buchheit: Wednesday 12:30 pm CT - 1:30 pm CT
Gerardo Viana: Friday 12-1 pm CT
We also want to ask you a favor, we're currently trying to build a database of HELOC providers to help new members find a lender wherever they may be based. We would greatly appreciate it if you could fill out this form based on your HELOC provider.
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