First of all I want to explain what I mean by life style creep, lets say you currently earn £30000 per year and your salary increases by £2500 life style creep would be you spending this £2500 on liabilities.
increases in income that can do this might also be side hustles for me any money I make from these are reinvested or invested into stocks or saved towards a rental down payment.
Im not against giving yourself more money to spend and you earn more i’ve found its hard to not spend any of a pay rise but I always at least invest 50% of any pay rise or bonus I get.Buying more liabilities just slows down your wealth building as all your doing is taking money out of your pocket every month or year not adding more money to your pocket like assets do.
Ive found looking at money as time helps me to put more money away as lets say you make £20 every £20 you save is an hour you don’t have to work one day, however the joy of investing is that every £20 you invest could be days or even weeks you don’t have to work in the future depending on time invested and rate of return. Alternatively I look at every £20 I spend is another hour I have to work some things are worth it but looking at spending like this really put into perspective on how much time you can waste buying stuff you don’t need or even want.
So as you get another pay rise don’t just buy liabilities also buy time (by investing in something you know)this time can be spent with your family, on holiday or working on that project you always wanted to start this way of looking at things really helped me and I hope It can help you invest more.