September 2025
Tune in if you’re interested in…
• Understanding how lifestyle creep sneaks into your finances
• Learning strategies to enjoy more without overspending
• Spotting the trade-offs between short-term upgrades and long-term goals
• Building habits that keep wealth growing with your income
Watch previous episodes here:
Ep. 154 Financial Advisors React to Rich Dad Poor Dad
Ep. 153 Fed Meetings: Do They Really Matter?
Stacey, I'm excited to talk to you about lifestyle creep a little because it's coming up a lot in terms of how unaffordable life seems to be for so many people today. And, you know, they're picking on lifestyle creep as a big reason why, people start making more money and they start upgrading the things that they do.
Maybe they switch from ramen to sushi or from, you know, hamburgers. My mom was a phenomenal cook, so I never had to eat ramen in college.
Oh, you had to backtrack?
Oh, I had to backtrack.
So, like, how do you feel about lifestyle creep?
Well, it's so funny because I think that sometimes, like, lifestyle creep gets discussed in a negative connotation, meaning there should be shame around lifestyle creep. Oh, you should hold yourself back from kind of elevating your lifestyle as your life changes, as your compensation changes, as your job changes. And while I think that that can get out of control, I also think that there's a part of it that's kind of rewarding, right?
Like, we work so hard, we put so much energy and effort into our careers and making a positive impact on the people around us that, like, there's a little bit of lifestyle creep that I think is like a nice little bonus of, okay, I can actually go to that restaurant that, you know, I could only go to once a year, and now I can go twice a year or three times a year.
I feel like those types of things are very rewarding, especially when you're working hard in your career.
I agree. I mean, you and I laugh all the time about the financial advisors saying, you know, what's keeping you back from succeeding at your financial goals is that $6, you know, coffee that you go by.
It's not the $6.
Oh yeah. How about investing in yourself? And then you can have as many $6 coffees as you'd like.
Exactly. And, you know, even in that name, like sometimes what happens with lifestyle creep is you make more money and then you can start giving to charity in a way that you weren't able to before, and you're able to spend on other things. And so I don't know that we should feel shame around our coffee habits or our dining out habits, but I think it should be an empowering process.
Now, let me back up for one moment, though. I will say that where I think lifestyle creep is dangerous is when it is paired with keeping up with the Joneses. So like when you're looking at your neighbors or your friends and you're saying, oh, they got to go on that trip, or they got to buy that car, or they did these upgrades to their house, I should do it too.
I think that's where it gets dangerous. So lifestyle creep as a reward for your hard work is, I think, okay; lifestyle creep when it's trying to keep up with others is not.
That's too dangerous. Yeah, yeah. I mean, what's your opinion on this? How has it impacted your life?
I mean, lifestyle creep is real. As you start to make more money, you do upgrade from, you know, those dinners out to, like, vacation—weekend vacations with your family. But there was a time in my life, early on in my career, where I had to use that money to invest in myself. You know, your appearance and how you show up is extremely important in the financial services world.
I couldn't show up to a meeting in a shirt with holes in it or a worn-down jacket. I had to invest in my appearance, and I didn't feel like it was to keep up or to misrepresent myself. I think we often get judged in first impressions by how you show up and whether or not you're capable, you know.
Are their nails nicely manicured? Do they chew their nails? Wear your shoes polished. And so I felt early on that, you know, just as a steward of, I am responsible for somebody else's money, I had to be a steward of my own personal self—my health, my fitness, and the way that I looked.
So making sure that my car was clean. I mean, I drove a Ford Fusion for a long time. It was paid off. It wasn't a fancy car, but it was always clean, and I felt the same way about my appearance. So lifestyle creep for me early was about investing in myself and skill sets—not, you know, other material things.
You know, I love that you shared that and kind of authentically shared that, because I do think it's important—we are stewards of our clients' money and we must represent that in the best way possible. I think taking good care of yourself is like when you are on a sports team and you get dressed for the game; that gets you in the mindset that you're in the game.
There's a part of me that thinks making sure that we are representing in the right way is like getting into the game. So I think that's probably a good lifestyle-creep checkbox as well.
I had this whole thing back when I was competing: you had to look good to play good.
What tactics have you used to prevent lifestyle creep in your life? So the number-one thing that's important to me is automation. My 401(k) is automatic. My health savings account (HSA) is automatic. When I was first starting my career, I automatically put $1,000 a month into my savings account. Those things were incredibly important to me to make sure I was making the right decisions.
And then now in my career, something that's important to me is I try not to ever spend my bonuses or partner distributions. You know, we're both partners here at Morton. For me, it's living a lifestyle to my salary but not to bonuses or partner distributions. That being said, maybe for some of that extra income I would make different investments—I'll invest into my house or something like that.
Like, I just redid the driveway. That's not as fun, by the way, as an activity.
Investing in a driveway is not quite at the top of the list of house investments like a kitchen, but I always think to myself, if I can just live off my salary, then that keeps me in a place where I'm both investing into the now and the future. I feel like that's an important aspect to consider in today's society.
We tend to be a little bit more YOLO, you know—you only live once.
And I feel that like Granny Stacey deserves a little attention too, so I gotta make sure there's a little allocation to Granny Stacey.
Never heard you use that term, Stacey—that's going to stick with me. I feel very similar. You and I have always talked about this. I try to live similarly in terms of not living off my salary; I try to save bonuses or make other investments. There is that reality that you only live once and you have to do some things to enjoy your life today.
Like, I can't climb the Alps at 70 years old—well, not climbing the Alps anyway—but at 45 I'm rewarded with health and fitness, and there are certain activities that I can do today with my kids that I can't do 25 years from now. I try to be cognizant of that and space them out. That way I know throughout my life we're having different, unique experiences while also saving for later.
You don't have to do everything today. With social media and the travel-obsessed world we live in, it can be tempting to say, I have to do everything right now. What if something happens and I won't have it later? I think we can spread out our trips—spread out our experiences.
Something I was thinking about in our conversation is what happens if you don't allow lifestyle creep and you restrict yourself.
What I found is that sometimes when people work really hard their entire lives and then they turn 65 and they retire, it's actually very difficult for them to allow for lifestyle creep because saving was their value system. It almost feels bad to spend. How do you help clients through that dynamic?
We have some clients that fit that mold very well, and you have to hand it to them. They've done a great job avoiding lifestyle creep—saving and accumulating dollars. But if they don't fly first class, their kids will. That's a reality. You have to recognize that at a certain point you are in a place where it's okay to spend a little bit of money—don't just wake up and buy a Lamborghini.
But if you go on a vacation and want to spend an extra $6 on a hot chocolate or an ice cream, that should be okay. That is not being frivolous—spending when you're on vacation. You just have to be mindful of that.
I think it's the same principle I shared at the beginning: you have to see it as a reward, not as something bad. You've made a lot of good decisions to have the money you have today. The fact that it's a blessing and you can utilize it in ways where little joys are available is an important mindset shift, especially in retirement.
Yeah, I do commend the people who have been able to avoid lifestyle creep and hold that as a strong value, and those trying to pass that on to future generations. Just be careful because your kids might have a much more fun lifestyle—they're going to use it, you know.
What about people who are really struggling to save? It is more difficult these days, but you and I believe in a few things in particular. What advice do you have for people struggling to save a little right now?
Well, like I shared earlier, automation is the number-one advice I have: make sure it happens without you thinking about it. Sometimes I'll have conversations with friends or family who are struggling with saving, and one challenge they face is the decision to save. It's not that they don't want to—they feel the need to be responsible—but they worry about next month or unexpected bills.
Saving doesn't mean putting your money somewhere you can't access. A retirement account might be that way, but you can put money in a savings account and then, if you need it, take it back out.
It's surprising how much people will give a financial plan a chance when they have a wake-up call. But I think automation and small goals work.
I agree. Even setting a recurring transfer of $50 can build habit and momentum.
We often talk about buckets for cash—short-, medium-, and long-term—and that structure helps prevent lifestyle creep by making choices explicit.
Yeah. When people see that money going to specific goals—vacation, home improvement, retirement—it feels less like deprivation and more like intentionality.
Right. And the other piece is the social element: if your peer group is upgrading constantly, that pressure can be real. That's why we try to talk about values with clients, not just numbers.
Exactly. Values drive behavior. If you can articulate what's important—family time, travel, giving—then you can design your spending around that.
And remember, there are ways to enjoy life now while still building the future you want. It's about balance.
Sometimes allocating a bit for enjoyment actually makes the plan stick better. If everything feels like sacrifice, people abandon plans. If there are regular rewards built in, they stay committed.
Great point. Before we wrap, anything you want listeners to take away?
Be intentional. Automate the important things. Let yourself enjoy the rewards, but make sure you're investing in your future too.
Couldn't agree more. One last quick thought: time is an asset too—spending to save time can be a great use of money.
Absolutely. Sometimes spending to free up time—for family, for health, for growth—is worth it and not lifestyle creep.
She saves me six hours of time. Yeah. She's amazing.
And that's worth it to me. To me that's not lifestyle creep because that allows me to have that six hours for so many other things.
Yeah, I think that's actually really important. Sometimes we try to save and don't realize we aren't saving our own time. If we allocate time elsewhere, it can allow for much more growth than just hoarding every dollar.
I didn't do my driveway myself, as I'm saying.
You've got to have the skill to be able to do it. Exactly. All right—want to play a game? Optimist or pessimist. Okay, ready? The national savings rate is currently 4 to 5%. Will it rise back to its historical norm of 7 to 8% in the next five years or so?
Yes, but I have to say that I unfortunately think a recession is the thing that's going to cause that. One of the challenges with lifestyle creep is that it's almost been two decades without a proper recession, which means we've all lived in a world where money feels abundant and spending is abundant.
I think if we go through another experience like 2000 or 2008, it might reset us to, okay—saving matters.
It helps you address needs versus wants because at a certain point everything becomes a need.
Yeah. So was I just optimistic in a pessimistic way?
Yeah. But that's the reality of it. You need a catalyst for change for people to start saving more—and that might be a catalyst.
Okay, well, question back to you. We've talked a lot and in recent episodes you've talked about financial education and how California is starting to do it in schools. Do you think that will help or hurt people with lifestyle creep?
Can I say maybe? I do think financial literacy and education will help—it's a need. My biggest fear is social media; that being able to prevent people from keeping up with the Joneses. Some local school districts have now banned phones in all grades: you put it in a bag and it's locked, and when you walk out of school you tap it and then you can use it. I think stuff like that can help kids focus and learn without distractions.
Hopefully that can create better financial literacy in the future.
I think you're 100% correct—if that stuff's not in your face all the time, you won't be tempted by the keeping-up mentality.
Stacey, thank you so much for this—it's fun.
