Lifestyle Creep – Are You Making This HUGE Financial Mistake? | Money Mistakes to Avoid

I would argue that one of if not the biggest
financial issue the majority of people will face in their lifetime is something that is
rarely every talked about in traditional financial media. And no, the issue is not debt, it is not the
stock market crashing, it is not even something like getting laid off from your job. Those issues all can be very difficult to
deal with, but I would argue that there is another issue that may be even more damaging
to our financial futures. I’m talking about the phenomenon known as
lifestyle creep. Today I’m going to be talking about what
lifestyle creep is, why it occurs, what issues it can lead to if not properly managed, and
how to properly manage it in our lives. Hey everyone Daniel here and welcome to Next
Level Life a channel where you can learn about investing, debt, retirement, and many other
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or you can smash that like button if you haven’t already, share this video with a friend, and
leave a comment below letting me know what topics you’d like me to cover in future
videos. Lifestyle creep is something that most of
us experience throughout our lives to varying degrees and it is often one of the main causes
of some of those other financial issues I mentioned a moment ago. Lifestyle creep is defined in many ways, but
for the purposes of this video, I will be defining it as “A situation where people’s
lifestyle costs or standard of living improves as their discretionary income rises. Lifestyle creep occurs for a couple of reasons,
the first is because of inflation. Inflation, of course, is the phenomenon that
explains why $1 today doesn’t buy you as much as $1 did 30 years ago. So an apartment for rent for $900 today, may
be renting for $930 a year from now and as a result, the cost of raising (or even maintaining)
your lifestyle creeps upward over time. The second reason lifestyle creep occurs,
and the one that is less commonly talked about is when we willingly choose to increase our
standard of living by bringing more luxury into our lives. Often we’ll find that as lifestyle creep
occurs, former luxuries soon become considered necessities. As a result, it can be difficult (though not
impossible) to bring ourselves back to a standard of living that we previously had after we’ve
been introduced to the new, and higher, standard of living. And lifestyle creep can happen with just about
anything. It can happen on small things like the clothes
we wear, the food we buy, or our choice of drink at dinner to much larger things like
our furniture, homes, cars, and other potentially expenses luxuries or hobbies. So as you can imagine, lifestyle creep is
considered sinister for a few reasons, foremost among them is that it is so very subtle. As I said, most of us have experienced some
lifestyle creep in our lives, but since it usually happens so slowly over a long period
of time that we may not notice just how much of an effect it is having on our present financial
situations or our financial futures. Let me show you how this works. Say John is going to school year-round, full
time, and has a part-time job to try to pay for this educational and living expenses. He works about 20 hours a week at $12 an hour,
meaning that he earns roughly $12,500. As you can imagine he is living on an extremely
tight budget. He doesn’t own a car, he lives at home to
save money, and he still can’t afford to have many luxuries on that level of income. Maybe he goes out to eat with friends once
a month as his reward for doing so well in school, but to save money he never goes to
fancy restaurants and always orders water for his drink since it’s usually free. Then John graduates and gets his first full-time
job, where he now makes $15 an hour. That’s approximately $2,600 a month or $31,200
a year which to him probably feels like a ton of money after living on $12,500 a year
while in school. Even after considering taxes he’d be doing
better than before by pulling in about $2,300 a month. And for his hard work, he rewards himself
with a new, or at least new to him, car to get to and from his job with maybe some nights
out thrown in for good measure. The car costs him $10,000, but he doesn’t
have $10,000 so he has to finance it. The 5-year loan with a 4.5% interest rate
costs him a little over $185 a month. On its own, that’s not backbreaking. He’s got the money now after all and the
busing system where he lives is not good, so he needed some form of reliable transportation. However, the car loan is not the only new
cost that would have to be considered in his case. Since he didn’t have a car while in school
he will now have totally new bills relating to the gas, insurance, and potentially maintenance
on the car for a start. These costs will vary depending on a number
of factors but let’s assume, just for the sake of this example, that between all of
that he is spending an additional $250 a month on transportation costs. But that’s not all because living at home
with his parent’s, or roommates is a drag and now that he has a job, he has the ability
to get his own place so he looks around and rents an apartment which costs him roughly
$800 a month once we add in all the utilities, insurance and other expenses associated with
apartments. Looking at his lifestyle before, John was
living on a shoestring budget of $12,500 a year or a little under $1,050 a month while
in school. He was living at home in order to save money,
just as many of us did by living with multiple roommates to save money in college and the
luxury end of his lifestyle was basically going out to dinner once a month. Since getting out of school he has added monthly
expenses of $185 for his car, $250 for other transportation expenses, and $800 for his
apartment for a total monthly budget of about $2,285 on a $2,300 after-tax income. In other words, John has officially entered
the rat race and is living paycheck to paycheck. And mind you, his standard of living hasn’t
really even gone up that much, no seriously, because he has a total of $15 a month or $0.50
a day to actually go out and enjoy life after covering his expenses. That isn’t going to get you much nowadays. Sure he’s living on his own, and I don’t
know maybe his parents were cramping his style, so that’s certainly changed. He’s able to drive now, except not really
because he can’t afford the gas and extra wear and tear on his car that, that would
create without plunging himself in even deeper debt and living on an even tighter budget
down the road. So maybe not that, but maybe he’s able to
go out to dinner twice a month now instead of once a month. But that’s about it as far as improved standard
of living goes. And that’s an unfortunate reality that many
Americans are facing today, they’ve worked hard, put themselves through school (if they’re
lucky it’ll have been done debt-free like John managed to do but statistically speaking
that isn’t usually the case), they get their job (hopefully), and a couple of expenses
(sometimes even the necessary ones) increase but they increase beyond what’s necessary
like we saw in John’s case and suddenly they’re living paycheck to paycheck. So what’s the solution? One might think that his future raises will
enable him to escape the rat race and that might be true depending on what career he
choose and how well he does, but if he’s in a career that only gets him 3%-4% raises
each year, it’s going to be quite a while before that happens (especially when we consider
that inflation has averaged about 2%-3% per year historically) and eventually he’ll
be hard pressed to save enough money for his eventual retirement. The solution, as I hinted at in past videos
is that we need to learn how to properly manage lifestyle creep. Because, contrary to what it might seem like
so far, I don’t believe that lifestyle creep is inherently a bad thing. It, like most things in life, is fine so long
as it isn’t used in excess. Cars are not bad, too much car is bad. Extravagant vacations are perfectly fine,
but too much too soon can be damaging to your financial present and future. There’s nothing wrong with lifestyle creep,
but too much of it is dangerous. Like I said in last week’s video, it isn’t
really about how much you make or even about how much you spend, it the difference between
the two that matters. So how could John have better managed his
lifestyle creep from before? Well, as always he has several options at
his disposal. First, he could’ve spaced out his lifestyle
creep instead of trying to take it on all at once. Assuming he wasn’t able to carpool with
someone, take advantage of some other form of ride sharing, or bike to and from work
for a little bit in order to save up money for better transportation he could’ve stayed
at home for a little while longer in order to pay off his car loan. Judging by the numbers from the previous example
he would’ve had $1,050 a month in living expenses due to living at home plus the $185
car payment and the $250 for other associated transportation costs for a total monthly expense
of $1,485. This means that he would’ve had about $815
a month to put toward that car loan and would have it paid off, in full, in 11 months and
he would’ve saved about $1,000 in interest over that time as well which is a nice bonus. Another thing he could’ve done was find
some roommates that were willing to rent an apartment near his work which would lower
the cost of John’s transportation costs, if not eliminating them altogether and help
save him some money on rent. Say if John found an apartment within biking
distance of his work and got two roommates. The total cost of the apartment was $1,500
a month with utilities and the three split the costs evenly. That means John is paying $500 a month for
housing and, beyond possibly the initial purchase of a bike if he didn’t have one, or any
costs that may be associated with a bike ride sharing program he transportation costs would
be virtually nothing. This would leave John with monthly expenses
somewhere in the neighborhood of $1,550 a month, meaning he would have $750 a month
left over after taxes and expenses in order to invest for his future and have fun. Say if John wanted to retire at 65 and was
23 after graduating college. He wanted to live on $24,000 a year in today’s
dollars when he retires. Assuming a 3% rate of inflation that means
his retirement nest egg would have to be about $2,075,000 once he’s 65 if we’re following
the 4% rule. At an 8% average annual rate of return, John
would need to invest about $550 a month in order to reach his goal. Yet another thing John could do is to start
a side hustle to bring in a little extra money. Say John starts flipping things that he finds
in his local discount stores for a profit online which allows him to take home an extra
$500 a month on average. Assuming that John still went and financed
his car as well as moving out on his own he would at least have some breathing room this
time thanks to his $2,800 a month take home pay compared to his $2,285 a month in expenses. He could, as I suggested in last week’s
video play his financial strategy both offensively and defensively by rent hacking with the help
of his roommates and starting his e-commerce side hustle. This would end up giving him $1,250 a month
left over after taxes and expenses to put towards his investments and his current enjoyment. Assuming his investment goals stayed the same,
he would have roughly $700 left a month to let his lifestyle creep up a little without
derailing his present or future financial situations. Maybe he can start going out to dinner once
a week with family and friends and get something other than water with his meal. Maybe he could go to the movies, on vacation,
or take part in some recreational activities like rock climbing or zip lining. Maybe a bit of both or he could decide to
put a little extra toward his investments. This would give him the possibility of becoming
financially independent earlier in life than normal without sacrificing his current happiness,
not to mention that over time those investments would gain interest which would give him some
small form of security in case something unfortunate happens with his living situation, job or
side hustle. Another thing that I feel John, could and
should do in any of these scenarios is to consciously pay attention to figuring out
what he truly enjoys spending money on in life because as time goes along he may find
some things that he is currently spending money on just don’t bring him that much
enjoyment and he can then start trying to figure out how to reduce or eliminate those
expenses, essentially reversing lifestyle creep! And those are just a few examples of what
John could do to better manage his lifestyle creep, but it’s by no means an exhaustive
list, so here’s where you come in. In the comments section below I want you to
leave some examples of where you have experienced lifestyle creep and how you can (or did as
the case may be) manage it. I’m looking forward to seeing your examples
and ideas. But that’ll do it for me today once again
if you enjoyed this video be sure to smash that like button if you haven’t already,
subscribe, and hit that Bell next to my name so that you’ll be notified of all my future
uploads. I generally upload every single Monday, and
if you have a friend that would be interested in this kind of content be sure to share it
with them and let’s really get this information out there and start our own Financial revolution.

88 thoughts on “Lifestyle Creep – Are You Making This HUGE Financial Mistake? | Money Mistakes to Avoid

  • Great video. Thank you.
    I didn't take a close look, but have you reviewed any budgeting apps? I would like to see your take on things like Mint, Personal Capital or Ask Zeta. (There are others, but I can't think of the names right now.)

  • Just a got a significant raise and I was so tempted to upgrade my living situation. Seeing my bank account grow is much more worth it.

  • We trick our selves in believing we "need" a vacation or we "need" to remodel the kitchen. What we "NEED" Is to pay off all our debt and save + invest so we can retire with dignity and not have to work untill we take our last breath !

  • My relationship ended soon after I was becoming financially educated and ended back at home with my parents. This was huge In terms of experience because her reason of why it ended was that "we have little in common". So as I always seen I had been enlightened to investing saving & growing every dollar, while she was a heavy consumer stuck within a rat race. I'm forsure now experiences(also limited to time) matter more than how much MONEY(Unlimited) you may ever have.

  • My home was a lifestyle creep for sure. But then we got on Dave Ramsey and cut back most other luxuries like cable and going out to eat. Still drive the cars we had when we got married and we are debt free other than our mortgage!

  • You make great videos, very informative. I want to learn how to make cartoon videos like this, any Ressources?

  • I know this isn’t related but you had a video about the effect of different saving rates on the time needed to hit total retirement savings but I can’t seem to find it. If you see this could you comment what video it was cus I wanna watch it again

  • Lifestyle creep is real. We have decided to dial our lifestyle back by simply keeping the cars we paid off years ago and not buying new ones. We are saving cash in Baby Step 3, and once these cars are worn out, then we will buy inexpensive cars with cash. We will be retirement investing the amount we used to pay in car notes each month! Roth IRAs here we come!

  • I just got a promotion on my job last week, increasing my salary by 10.5%. My plans at the moment is to add 4% to my 401k to max out my company's match and maintain it that way. Next is do $200 per month on a robinhood account to growth and value stocks. The rest is a mixture of new baby expenses, inflation expense changes, saving back my 3 months of wage, and miscellaneous family time adventures.

  • Im currently in baby step 4, i started last year April 1st with over 60k in debt, fast forward today I'm now debt free with 17k in the Emergency fund and starting to invest for my retirement 😀

  • I realized I was watching more YouTube than actual television. So I cancelled my cable television service, which ended up saving me $840/year. I cancelled Netflix too. I'm also in the process of trying to sell my condo so I can buy a cheaper house. The HOA fees for the condo have gotten ridiculously expensive, and I don't use most of the amenities in my community anyways. I'm still pretty bad about buying cars too often, but this time around I bought a used car to save some money.

  • My example of lifestyle creep:
    Playing video games for 10+ hours a week, as a time filler.
    Nothing wrong with playing video games from time to time, especially if it's for constructive or educational purposes, but if it's used regularly as a way just get away from the day to day, then it's non productive for the mind and finances, unless you get paid to do it.
    I've cut down my gaming time to less than 5 hours a week now and have been more focused on bettering myself in life. :^)

  • Lifestyle creep is so real. I just spent $45 yesterday on tequila and whiskey for a camping trip! I would never have done this 3 years ago when i was making $8.50. Now i make around $65K a year with bennies included and it is so tempting to just spend all my money. Keep your expenses low! Pay YOURSELF first!

  • Got a small annual increase, and 30% of it, I added a maintenance plan for the important household items (hvac, water heater, etc), added Hulu service, and put the rest towards the principal in my mortgage. So, less than 10% of it was for fun while the rest is a saving-type of expense.

  • So if John were to have not increased his lifestyle and instead invested all of his money toward retirement, when would he have been able to retire?

  • was in a relationship where we would go out eating every week, (would spend around 30$ per date) after that started going out clubbing which wasnt that good, fix this thing by starting to read books, now my time is full so i go out less and when i do I do it with good company and go to bars that are not that expensive.

  • Another great video! The example of lifestyle creep I'll give is transportation expenses (which went up significantly) after my oldest son got his driver's license. The way we manage it is we didn't go out and buy a 3rd car, since we already had 2 cars. We also communicate our transportation needs and plan accordingly. In addition, we track and minimize all our other expenses to off-set transportation costs creeping up. I also bike to work pretty regularly.

  • I liked your comment near the end about taking some time to think about things that you spend money on that you don't truly enjoy. My wife and I choose to take the bus to work and to have a single car that's 14 years old that we hardly drive. We also chose to buy a house that cost about a third of what we could have gotten a mortgage for, and prior to that lived for 3 years in an apartment that was far less expensive than we could have afforded. These choices have allowed us to build healthy 401ks and IRAs, to work on paying our mortgage down early, and to take part in the luxuries that we do enjoy. We get a lot more enjoyment out of trying new foods and traveling than out of having a house with extra rooms in it that we don't need or driving a shiny high-tech vehicle, so those are the luxuries we choose to partake in. In the same vein, we don't have cable or even a TV at all, our phones are several years old, and so is our computer. Taking the time to think about the optional things that you spend money on by default, but don't really bring you fulfillment can really help you reach your financial goals.

  • Every time I get a raise, starting with my first new check, I have my entire raise automatically deposited into my retirement account. I'm not maxed on my contributions, so I can do this. Prevents me from lifestyle creep since my take home pay doesn't change.

  • food… not too many years ago i would spend 50-75$ wek eat lots of sandwichs/fozen pizza, rice,beans……slowly ,slowly,, i spend a lot more on hummus,cheese,prepared salads,fish.– once in awhile cheese cake or fajita meat… i think i spend now 150-200$ week on food..

  • PLEASE PLEASE PLEASE PLEASE do a video on perpetual accounts. I've watched ALL your video and am better for them 💲

  • Looks like the math is incorrect. On the 2nd example when he gets a job he makes 2300/month. His new expenses are a car 185, house 800, car maintenance 250. That equals 1235. Not 2285 like the example shows. Thanks

  • I almost got caught in a creep. I was approved for a mortgage at 330k but that would have bankrupted me on day to day expenses living on my own. Despite having that much, I went sensible and bought at 200k (I'm in the south, small city, prices are super cheap) with a VA loan to cover the down payment. Instead of being house rich and pocket poor, I'm still house rich in my new construction dream home (it's all about perspective) and saving tons to finally get to start investing in my future or emergencies.

  • I started accumulating a better wardrobe for work. I've been careful to keep latte purchase few and far between so that it remains special. I do treat myself to a meal out per week, but I need to keep the $ amount to $15. I want to fight lifestyle creep.

  • I was living on 25-30k a year. Got a new position making 52k a year. First thing I did was keep my living arrangements the same way and increase my 401k withholding to max my 401k every year. Don't see a difference on my paycheck but my net worth is thanking me.

  • Alright you fricken lost me completely at 6:00 to 6:12 HOW IN THE HELL does 185 + 250 + 800 = $2,285.00 ??????? I can't be that stupid that equation equals $1,235/mo according to my math what the freezing nutsack am I missing?

  • I got rid of cable television and a land line quite a while ago. I have a great income, but I have a 2007 Toyota Camry with 218,000. It looks and runs great, and I intend on getting the full value out of it. The best car is one that is paid for. 👍🏿👍🏿

  • you can't outearn overspending, but an increase of income would greatly assist this situation. I think being intentional in what you'd want to spend is important.

  • I don't know where you got the $24,000 using the 4% rule for the hypothetical retirement. Using $2,075,000 as you did in the example and assuming his stocks produce dividends at a conservative 3% rate that would still equal $62,250 a year in dividend payments. That's before taxes, but is ~2.5x what is goal going into retirement would be so in that instance the guy could retire early or retire on schedule but with a lot more income than planned, which is a very good 'problem' to have.

  • 800 a month including utilities!?!?! that's what it cost here in Orlando without utilities but even then you wouldn't qualify because 30k a year is too much to get that government assisted apartment at 800/month… smh

  • if you graduate from college and only make $15/hr your degree of choice sucked. Many college grads start at around $50K. That would have been a better number to start out with.

  • I’ve cut back on eating out and noticed that I enjoy cooking at home and making new meals! So this was an example of reducing lifestyle creep while maintaining happiness. I also just paid off my car and have no desire for a new one yet as I love my car even more now that I have the title to it. $433 a month back in my pocket. 🙂

  • I got a 120% income increase after leaving college. My new job was hours away so I moved from the suburbs into the city. Here is some of the creep I experienced.

    3br/2ba : $750 then $1150
    Food: increased 20%
    Utilities Increased 40%
    Transportation decreased 50%
    Doing things in the city went from $0 to $200
    Eating out increased from $50 to $200
    All in all it was about $1200 increase in living expenses.

    We did a few things to address this.
    1) We started discriminating between what we did in the city and using public transport instead of driving. This saved us $50-$150.
    2) We stopped buying drinks when we went out and only went out once a month.
    3) We put blankets over our drafty windows when it was very hot or cold.
    This saved use about $500 a month. The problem came when they raised our rent from $1150 to $1250. Then, $1675.

    Our final cost cutting measure was to stop renting. We got a 1st time home buyer FHA loan with high interest (bad credit and 3% down). On the outskirts of the city, with only 10 more minutes drive. This changed our rent/mortgage from $1675 to $656.

    We took out a 30 year loan. I know it is a sin so I will explain. The 30 year has allowed us the cash flow to build a 3 month emergency fund (still growing), contribute 15% to my Roth 401k, and take 2 days trips with the family a month. We have a maintenance fund and an semi-annual trip fund, $10/wk and $20/wk respectively. With all of that handled we are over paying the mortgage. Once the emergency fund is at 6 months we will be making double payments on the house, effectively turning it into a 10 year. Please, please, don't hammer me too hard about the 30 years loan.

  • One way I avoid lifestyle creep is to only buy what I can pay for. Meaning I will not take out a loan for a new car, instead I will save money and only buy what I can pay cash for. Yes, most people are pre approved and can finance some insane amount for a new car ($60-80,000) but if I can only scrounge up $13,000 then guess what, I’m buying a $13,000 car.

  • I'm new to this investing world, but I've always been a saver at heart. For the past decade, I've managed to keep my living expenses at 10% below of my income. I'm due for a raise this year, and I'm slowly learning how to invest. Thank you for your channel!

  • Hi, can you please make a video about cash value life insurance?
    A financial advisor convicted us to set up one to save for our sons' college. At the time I was not as financially educated as I am now and did not question much. But still now I can put my head around it.
    Also, can you make a video in general about saving for college? Thank you! Love the content you make!

  • After my first year of living on my own I defientely experienced lifestyle creep. I got a brand new big apartment. All the fancy furnishings and I was constantly eating out. I saved about 15% of my first years income. After a year or so I cut back drastically. I now have a roommate so rent is half. I cut cable, I only eat out once a week, I shop at ALDI and stick to my grocery list, and I was really aggressive and paid off my new car.

    I made it my goal to save 50% of my take home pay for 2019. Right now I’m on pace for 60%. The sacrifices now will definitely pay dividends in the future.

  • Where do you always get 8% rate of return? O.o mutual funds after expense charges are lower than that, right? Or maybe I’m choosing a mutual fun that performs poorly…

  • I went back to college in my 30s for a second degree, which immediately doubled my annual income. I kept my lifestyle the same as it was before the new degree/career, however.  After a few years, I had paid off all student loans, paid off the mortgage, and was able to start maxing out my 401k and Roth IRA every year. Every time I get a pay increase, it goes to saving/ investing. My lifestyle may not be glamorous, but oh does it feel good to be financially secure!

  • Don't grow old or die with regrets. Taste life while you can truly enjoy it…. just be reasonable and moderate your spending according to your earning capacity and income.

  • I'm glad I came across this video. I'm starting a new job next week and I'll be making 20k yearly more than my previous job. Lifestyle creep is something I needed to be aware of and work to avoid!

  • This is real. Me and my wife have increased our income by about 50% but I noticed something was wrong because we were still living paycheck to paycheck

  • My girlfriend and I love to go to spas, which is not always the cheapest thing to do as you can imagine. So we went to a massage and sauna course and we took part-time jobs at spas (between 4-8 hours a week). The country we live in spas give the workers discount from ticket prices. If you work long enough at a place (6-12 months) sometimes you get free entrances too. We make some extra money, at places we always loved to be to begin with, and we have to pay less if we go there in our free-time. Win-win-win.

  • I think there's another and may be better solution if John bought a house first to rent instead of the car while staying with his family. He could continue to use public transportation or cycle to work which cuts the car payments, gas, maintenance and insurance.
    Please redo this video assuming that his rental income property increased at say 5% per year.

  • Society brainwashes to spend more as earn more – kept in debt. Prefer to earn more, save more – gives peace of mind options.

  • This was my situation back in 2015. I even resorted to living in my car to save money. However, as time progressed and received a few promotions and bonuses… money started adding up. I never really changed my lifestyle outside of maybe having excess money to attend sporting venues and whatnot. There's really No need to here in Los Angeles. Not too cold. Not too hot. 24 hour fitness open 24 hours (workout and shower). Don't have to fight traffic everyday. Money accumulates real fast when one doesn't have to pay rent. 😆😆😆

  • 10:35 think you made a mistake if he wants to retire and needs 24k a year to do so 800k is more than enough as that money will continue to earn you a yeild when you retire it does not stop earning interest just as you start taking 24k out a year. as even on a 3% yeild that would net 24k a year and 3% is incredible conservative property even after expenses is usually 7%+ in most regions i mean 3% is just a savings account.

    p.s im not familiar with usa law maybe im missing something great video though totally agree with lifestyle creep im very minimalistic in my expenses

  • When i went from being a student to employment i tooked the increased income and put it towards savings.

    I have a monthly income of $3,200 before taxes and $200 in side incomes. It gives me about $2,500 after tax. I have a student loan of $30,000 (with interest of 0.45%) and doing repayments of $105 a month.

    Every or every other month I look at my expenses, espacially my subscriptions and insurances, aiming at lowering the cost via renegotiation of the agreements that can be renegotiated. Last time I did this, I reduced my monthly costs by $ 55 ($ 660 a year or $ 6600 in 10 years). By not allowing the monthly costs to increase without control, I have doubled my monthly savings in two years (from $400 to $800) and expect to increase this by 50% (from $800 to $1200) from today's level within a couple of years. I have already hit $950.

    The problem I have is a loan of $23000 that costs me $280 every month in rent and repayment. But everything I put towards repaying this loan can be viewed and savings as well, as I am paying to myself in a way. With that point of view I do "save" about $1230 or 49.2% of my income after taxes.

    I wished I could save more!

  • Good advice but keep it in perspective. I went from a cheap one bedroom apt to a slightly more expensive but much nicer apt. In hindsight, best decision I ever made. Don’t cheap out on the things that give you real quality of life.

  • Simple solution. Have house mates that dont pay their bills and destroy your credit when your in your 20s. Then no bank will loan you money. Your now debt free amd have to pay cash for everything.

  • Where are these 800 apartments everything for rent is 1200 and up. Also why didnt you include taxes being taken out 15/hr after a 40/hr week does not yeiled s 2300 a month after taxes. At least not in my neck of the woods

  • All these numbers don't include marriage (wedding), children (hospitals, food, education). Life's not a youtube video. But the whole idea is absolutely correct. Just be moderate in your spendings and assess your budget with care.

  • My lifestyle creep is getting into a relationship, not that I'm out of it and single, would love to enter 1, but afraid of how much it'll change my finances, since I'm living with a pretty humble income right now.

  • I'm a paramedic and I see this all the time: an EMT (Basic) finally completes paramedic school, so they immediately run out and buy a fancy new vehicle (usually more than they can afford). Suddenly they are right back to square-one, and sometimes even worse off than they were before. I see this constantly.

  • Life style creep is so true. Glad my mindset and views on things are more mature compared coming out from college.

  • If you are going to live on $24K/yr in retirement, you only need $600,000 if you withdraw 4%(and keep investing the principal). How the heck did you get $2M??? A 4%withdrawal on $2M is $80k/yr.

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