Lifestyle creep, also known as lifestyle inflation, keeps many high-income professionals from obtaining the wealth they deserve given all the sacrifices and hard work involved in their careers.
Today, follow along as we discuss the rule that allowed my family to increase our net worth by $254,000 in just one year after training. It is the same rule that allowed us to pay off $200,000 in student loans in 19 months.
There are going to be multiple times in life where you receive a bump in pay. This may be due to a large (or small) promotion. This may be due to a quarterly or annual bonus.
I anticipate many asking how I decided to apply The 10% Rule after I finished training? Well, let the truth be told, I did one of the most financially unintelligent things possible.
I think that a little bit of lifestyle creep after training is warranted, but we have to put some guard rails on what can become a dangerous habit. And I suggest using 10% of any bonus or increase in pay to do just that.