How To Deal With Lifestyle Creep (Save More Without Sacrificing Enjoyment)
00:00:00.000 | - I think something a lot of people struggle with is
00:00:01.700 | what's a reasonable amount?
00:00:02.900 | How do you know that you're saving a reasonable amount
00:00:05.640 | and not spending too much?
00:00:07.200 | - This is the hard part with retirement planning in general
00:00:09.760 | because you don't know what inflation is going to be
00:00:11.340 | in the future, what financial market returns are gonna be,
00:00:13.320 | what interest rates are going to be,
00:00:15.040 | how your income is going to change over time,
00:00:17.240 | if any other life events are going to impact you.
00:00:19.680 | You have this savings rate you think
00:00:20.880 | is going to be there forever,
00:00:21.720 | but then you need to take those savings
00:00:23.640 | and use them for something 'cause life gets in the way.
00:00:26.080 | I think then you kind of turn the dials up
00:00:27.560 | depending on how well things are going for you.
00:00:29.800 | Personal finance, people always talk about lifestyle creep.
00:00:32.600 | This is the biggest enemy is lifestyle creep.
00:00:34.320 | As you make more money and your career progresses,
00:00:36.920 | I think you should introduce a little lifestyle creep,
00:00:39.440 | but have the savings creep up too, right?
00:00:41.960 | So have it be a certain percentage of your income.
00:00:44.240 | So if your income goes up
00:00:45.920 | and you're still saving a similar percentage,
00:00:47.920 | your savings will go up as well, right?
00:00:49.660 | So your spending and your savings
00:00:50.800 | should both go up commensurately.
00:00:52.480 | I think that's a good way to give yourself some benefits
00:00:54.960 | of your fruits of your labor,
00:00:56.080 | but also increasing the savings over time.