Lifestyle creep is everywhere. As the phrase suggests, this means that when your income increases or your portfolio grows, your spending also increases.
A nicer car, that fashionable watch, upgraded holidays. What were once luxuries become affordable and the affordable becomes must-haves.
Lifestyle creep is one reason why some people who appear to earn very large incomes still live pay cheque to pay cheque.
Some call it “moving the goalposts” because once we reach a particular milestone in our lives, we then push our wants even further.
A recent study by financial services company Schwab reveals that more than one third of those polled confessed to spending more than they could afford.
They also admitted that their spending was often influenced by their friends’ images or experiences shared on social media.
Lifestyle creep has big consequences. First, it diminishes the joy we feel when we get to the next level. You’ve worked hard for that raise or bonus and invested wisely to grow your portfolio.
But it’s hard to savour those accomplishments when you’ve quickly moved on to the next thing.
A second cost is that it sets us up for a lifetime of always chasing the next thing, what psychologists refer to as the “hedonic treadmill”.
As the financial writer Morgan Housel observes in The Psychology of Money, the hardest financial skill is getting the goalposts to stop moving.
Let’s look at a couple of important factors.
Firstly, many people will choose to add, instead of subtract. Why? Because our minds tend to add before taking away. Subtraction feels less satisfying because our instinct is to grow and build. It’s hard to resist more.
The second factor is social comparison. This is deeply wired into who we are. We humans have always closely looked at what others around us are doing. We frequently imitate others, especially when we admire or envy them.
And in the era of social media? This impulse has been triggered more than ever.
Moving the goalposts, it seems, is very natural. So, what can be done about lifestyle creep? There are plenty of strategies.
First, know your situation. Having a clear grasp on your finances is not easy, but once we do, we can begin to answer a basic question: Can I afford it?
Be aware here that expenses are harder to spot when they involve lots of smaller regular payments such as membership fees, leases or maintenance costs – versus one very large purchase.
But ensuring we have clarity here means we can communicate better with our partners and families and make better decisions.
Second, upgrade with intention.
Upgrades, indulgences and just having fun are good things. A big reason we accumulate wealth is to do the things that we want to do.
Perhaps, though, we can be a bit more deliberate in our spending. Having a sense of where the latest upgrade fits into your official financial plan begs the question: Do you have a written-down financial plan? Most people don’t.
For those who do, we can easily think about how a raise, bonus or windfall fits into our long-term objectives and dreams. If the luxury holiday or lavish new car fits into the plan, go for it. If not, give it a second thought.
Third, check in on your values.
So much of success in our money lives is anchored on knowing what’s truly important to us. When our money is aligned with our values, true wealth is much more achievable.
We should ask ourselves: Is moving the goalposts further out about keeping up with the Joneses? Or is it in sync with the way you want to live your life and model your values?
Next: Pause. In these noisy times, it’s often hard to stop, breathe and reflect on what we have, need, and want.
Research suggests that a source of unhappiness among the rich is that the ability to afford almost anything makes it harder to savour the things they already have.
We can also recognise and even appreciate that the discipline of not spending, even when we can afford it, can be a meaningful exercise.
Lastly, be clever. With your partner or your financial adviser, find ways to understand where lifestyle creep happens and then identify some tactics to avoid or minimise it.
Perhaps you can commit before you’ve obtained a bonus or windfall that you will put a certain percentage aside and then indulge with the balance. Maybe you can tweak your savings rate. The devil is in the details.
Lifestyle creep can undermine our attempts to lead a wealthy life. While we can accept that the push for more is natural, there are many ways to address it.
Sam Instone is co-chief executive of wealth management company AES
Ticket prices
General admission Dh295 (under-three free)
Buy a four-person Family & Friends ticket and pay for only three tickets, so the fourth family member is free
Buy tickets at: wbworldabudhabi.com/en/tickets
Bangladesh tour of Pakistan
January 24 – First T20, Lahore
January 25 – Second T20, Lahore
January 27 – Third T20, Lahore
February 7-11 – First Test, Rawalpindi
April 3 – One-off ODI, Karachi
April 5-9 – Second Test, Karachi
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
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The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
The essentials
What: Emirates Airline Festival of Literature
When: Friday until March 9
Where: All main sessions are held in the InterContinental Dubai Festival City
Price: Sessions range from free entry to Dh125 tickets, with the exception of special events.
Hot Tip: If waiting for your book to be signed looks like it will be timeconsuming, ask the festival’s bookstore if they have pre-signed copies of the book you’re looking for. They should have a bunch from some of the festival’s biggest guest authors.
Information: www.emirateslitfest.com
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
UAE currency: the story behind the money in your pockets
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
UAE currency: the story behind the money in your pockets
Changing visa rules
For decades the UAE has granted two and three year visas to foreign workers, tied to their current employer. Now that's changing.
Last year, the UAE cabinet also approved providing 10-year visas to foreigners with investments in the UAE of at least Dh10 million, if non-real estate assets account for at least 60 per cent of the total. Investors can bring their spouses and children into the country.
It also approved five-year residency to owners of UAE real estate worth at least 5 million dirhams.
The government also said that leading academics, medical doctors, scientists, engineers and star students would be eligible for similar long-term visas, without the need for financial investments in the country.
The first batch - 20 finalists for the Mohammed bin Rashid Medal for Scientific Distinction.- were awarded in January and more are expected to follow.
Company%20profile
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The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
McIlroy's struggles in 2016/17
European Tour: 6 events, 16 rounds, 5 cuts, 0 wins, 3 top-10s, 4 top-25s, 72,5567 points, ranked 16th
PGA Tour: 8 events, 26 rounds, 6 cuts, 0 wins, 4 top-10s, 5 top-25s, 526 points, ranked 71st
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
European arms
Known EU weapons transfers to Ukraine since the war began: Germany 1,000 anti-tank weapons and 500 Stinger surface-to-air missiles. Luxembourg 100 NLAW anti-tank weapons, jeeps and 15 military tents as well as air transport capacity. Belgium 2,000 machine guns, 3,800 tons of fuel. Netherlands 200 Stinger missiles. Poland 100 mortars, 8 drones, Javelin anti-tank weapons, Grot assault rifles, munitions. Slovakia 12,000 pieces of artillery ammunition, 10 million litres of fuel, 2.4 million litres of aviation fuel and 2 Bozena de-mining systems. Estonia Javelin anti-tank weapons. Latvia Stinger surface to air missiles. Czech Republic machine guns, assault rifles, other light weapons and ammunition worth $8.57 million.
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
The five pillars of Islam
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The specs: Rolls-Royce Cullinan
Price, base: Dh1 million (estimate)
Engine: 6.75-litre twin-turbo V12
Transmission: Eight-speed automatic
Power: 563hp @ 5,000rpm
Torque: 850Nm @ 1,600rpm
Fuel economy, combined: 15L / 100km
Company%20profile
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The bio
Studied up to grade 12 in Vatanappally, a village in India’s southern Thrissur district
Was a middle distance state athletics champion in school
Enjoys driving to Fujairah and Ras Al Khaimah with family
His dream is to continue working as a social worker and help people
Has seven diaries in which he has jotted down notes about his work and money he earned
Keeps the diaries in his car to remember his journey in the Emirates
ICC Women's T20 World Cup Asia Qualifier 2025, Thailand
UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
