Hello Grasshoppa,

Let’s have a real talk today—about something sneaky that’s draining your wallet without you even realizing it. It’s called lifestyle creep. You may not have heard the term, but I bet you’ve felt it. It’s that slow upgrade in your lifestyle every time you get a raise or make a little more money… and suddenly, you’re still broke.

You used to be fine with RM10 chicken rice, but now it’s RM30 cafe brunches every weekend. You drove a trusty Myvi, but now you’re eyeing that BMW because “I’ve worked hard for it.” I get it. I’ve been there. But here’s the thing: lifestyle creep is one of the biggest reasons people stay poor, even when they make more money.

1. The Pay Raise Trap

Every time you get a pay raise or a bonus, you feel like you deserve a reward. And you do—but not in the way you think. Most people take that extra income and immediately upgrade their lifestyle. Bigger house, flashier car, expensive holidays. Before they know it, their expenses have caught up to their income, leaving them in the same financial stress, just with nicer stuff. I can relate to this in the past when I just got a new job more than 10 years ago with a higher pay. Despite not having started the job, I decided to reward myself with a new Tissot watch that cost me RM4500 & guess how I paid for it? By credit card with monthly installments. That was not the smartest decision that I’ve made in the past. If you earn RM10,000 and spend RM10,000, you’re just as broke as someone earning RM2,000 and spending RM2,000. It’s not about how much you make. It’s about how much you keep.

2. The “I Deserve It” Mindset

Lifestyle creep often comes from the belief that because you work hard, you deserve to spend more. That’s dangerous thinking. You deserve financial freedom. You deserve peace of mind. You don’t deserve a car loan that drains your cash flow or a wardrobe that costs half your salary. Think about it: would you rather look rich or be rich?

3. The Silent Killer of Wealth Building

Every ringgit that goes into maintaining a higher lifestyle is a ringgit that doesn’t go into investments. And investments are what build real wealth. While you’re busy upgrading your life, someone else is investing their “extra” income, letting their money grow quietly in the background. Five years later, they’ve got a fat portfolio and passive income streams. You? You’ve got nice shoes… and debt.

4. How to Fight Lifestyle Creep?

First, pay yourself first. Every time your income goes up, set a rule: at least 50% of any new income goes straight into savings or investments before you upgrade anything. Second, upgrade slowly and mindfully. Want a better car? Fine—but can you pay for it in cash or at least without breaking your budget? Want that luxury watch? Great—buy it when your passive income pays for it, not your active income. Third, remember why you started. Is your goal to look successful… or to be financially free? Keep your eye on the prize.

5. The Simple Life Is Still a Rich Life

You don’t need to live like a monk, but keeping life simple has its advantages. Warren Buffett still lives in the same house he bought in 1958. Mark Zuckerberg wears the same grey T-shirt every day. The richest people often live the simplest lives—not because they have to, but because they understand that happiness doesn’t come from things. True wealth comes from freedom. Freedom to choose how you spend your time, who you spend it with, and what you do with your life.

Conclusion: 

Lifestyle creep is a silent thief. It steals your future in exchange for short-term upgrades. Don’t let it happen. Be smarter with every ringgit you earn. Use your pay raises to buy assets, not liabilities. Let your lifestyle grow after your investments do the heavy lifting—not before. When you finally get there, when your investments pay for your lifestyle, then you can flex all you want. You’ve earned it the right way.

OSS!