WEBVTT
00:00:19.920 --> 00:00:21.120
You make six figures.
00:00:21.280 --> 00:00:22.320
You have a good career.
00:00:22.480 --> 00:00:23.600
You live in a nice place.
00:00:23.760 --> 00:00:24.640
You go out to dinner.
00:00:24.800 --> 00:00:25.280
You travel.
00:00:25.440 --> 00:00:26.640
You buy the things you want.
00:00:26.800 --> 00:00:29.440
From the outside, you look like you're doing really well.
00:00:29.760 --> 00:00:37.920
But then you look at your savings account or your credit card balance or payday is coming Friday and you're already mentally spending that check.
00:00:38.079 --> 00:00:41.680
And you think, how am I making this much money and I still feel broke?
00:00:41.840 --> 00:00:45.600
Today I want to talk about one reason this happens that I don't think we're talking about enough.
00:00:45.680 --> 00:00:49.840
And that is lifestyle inflation or lifestyle creep.
00:00:50.000 --> 00:00:52.800
Your salary grew, so did the cost of being you.
00:00:52.880 --> 00:00:57.039
And at some point, your lifestyle quietly caught up with your paycheck.
00:00:57.200 --> 00:00:59.520
The lifestyle isn't necessarily the problem.
00:00:59.600 --> 00:01:08.800
And now, before you think that I'm going to tell you that you need to cancel everything, stop traveling, move to a cheaper apartment, never order DoorDash again, I'm not.
00:01:09.039 --> 00:01:13.520
I'm a money coach, but I also believe that you are allowed to enjoy your money.
00:01:13.680 --> 00:01:14.640
You worked for it.
00:01:14.800 --> 00:01:18.079
The question isn't automatically, how am I spending too much?
00:01:18.319 --> 00:01:25.040
I think the better question that we could be asking is what I'm spending my money on worth what it is costing me.
00:01:25.200 --> 00:01:36.079
Maybe you have an apartment you love, the luxury gym, the hair, the nails, the travel, the brunch, the conveniences, a nice car, and none of that automatically on its own is a problem.
00:01:36.320 --> 00:01:39.920
The problem is they're all competing for the same dollar.
00:01:40.159 --> 00:01:42.960
And that's the part that I think we sometimes forget.
00:01:43.200 --> 00:01:47.439
Every yes in your lifestyle is a no somewhere else.
00:01:47.680 --> 00:01:50.000
Every dollar can only do one job.
00:01:50.159 --> 00:01:57.200
And so when you say yes to something with your money, you're also saying no, or at least not yet, to something else.
00:01:57.439 --> 00:02:00.480
And that's not actually a bad thing on its own.
00:02:00.719 --> 00:02:04.560
The question is whether you're consciously making that trade-off.
00:02:04.719 --> 00:02:08.400
Maybe you value living in the beautiful apartment in the middle of the city.
00:02:08.560 --> 00:02:09.040
Great.
00:02:09.280 --> 00:02:20.159
Maybe you're willing to spend an extra$700 on where you live because you love the neighborhood and you love walking everywhere and you're close to your friends and you're willing to drive an older car for that trade-off.
00:02:20.319 --> 00:02:21.439
That's a choice.
00:02:21.680 --> 00:02:32.480
But maybe you're spending the extra$700 on the fancy apartment because somewhere along the way, you decided that because I make this much money, I should be living somewhere nicer.
00:02:32.720 --> 00:02:36.560
That is different because now we're not talking about what you value.
00:02:36.720 --> 00:02:42.000
We're talking about what you think your life is supposed to look like at your income level, at your age.
00:02:42.160 --> 00:02:45.040
The invisible pressure to look like your salary.
00:02:45.199 --> 00:02:49.360
Something happens professionally and socially when your income increases.
00:02:49.600 --> 00:02:55.360
Sometimes your spending starts to match your new identity of being successful.
00:02:55.600 --> 00:02:59.280
You start thinking, I make six figures, I should be driving a nicer car.
00:02:59.439 --> 00:03:02.399
I'm a director now, I should be living somewhere nicer.
00:03:02.639 --> 00:03:05.120
Everybody I work with takes these vacations.
00:03:05.280 --> 00:03:06.800
I work too hard to cook.
00:03:06.959 --> 00:03:08.399
I can afford these payments.
00:03:08.480 --> 00:03:13.360
And slowly I can afford this becomes this is just what my life costs.
00:03:13.519 --> 00:03:15.439
That's the six-figure trap.
00:03:15.600 --> 00:03:22.319
Because being able to make the payments is not necessarily the same thing as being able to afford the lifestyle.
00:03:22.480 --> 00:03:29.759
You might technically be able to afford a$900 car payment, but can you pay that$900 car payment and build your emergency fund?
00:03:29.920 --> 00:03:32.319
Can you do it and still invest for your future?
00:03:32.560 --> 00:03:34.720
Can you do it and pay off the credit cards?
00:03:34.879 --> 00:03:39.759
Can you do it and make that trip that you have been thinking about for the last two years?
00:03:40.000 --> 00:03:43.600
Can you do it and still have breathing room in your budget?
00:03:43.839 --> 00:03:48.639
Because your bills getting paid should not be the only thing that your money does for you.
00:03:48.879 --> 00:03:51.360
Your money also needs to fund your future.
00:03:51.439 --> 00:04:00.959
And if maintaining your current lifestyle means that there is constantly nothing left for the things that you say matter to you, then that's worth taking a look at.
00:04:01.199 --> 00:04:05.600
All right, friends, here's your homework for today, because y'all know I love to give you homework.
00:04:05.839 --> 00:04:11.199
I want you to identify the three most expensive lifestyle categories in your budget.
00:04:11.360 --> 00:04:13.280
We're not talking individual purchases here.
00:04:13.360 --> 00:04:20.240
I want categories: housing, transportation, food, travel, beauty, shopping, conveniences, entertainment, whatever they are for you.
00:04:20.399 --> 00:04:27.680
And there's a very good chance that at least one of those is going to be what I call the big three: housing, transportation, or food.
00:04:27.839 --> 00:04:31.280
Those tend to be the three largest expenses in most people's budget.
00:04:31.439 --> 00:04:34.399
Then I want you to ask yourself these three questions.
00:04:34.639 --> 00:04:37.920
Number one, do I genuinely value this thing?
00:04:38.160 --> 00:04:42.480
Number two, what I consciously choose to spend this money again.
00:04:42.720 --> 00:04:44.960
And number three, this is the big one.
00:04:45.280 --> 00:04:48.560
What is the spending preventing me from doing with my money?
00:04:48.720 --> 00:04:50.800
Now that third question, that's the kicker.
00:04:51.040 --> 00:04:55.840
Because maybe you'll do this exercise and you'll realize I absolutely love traveling.
00:04:56.000 --> 00:04:59.600
I spent$8,000 on travel last year and I do it again.
00:04:59.759 --> 00:05:00.240
Perfect.
00:05:00.400 --> 00:05:02.080
We're not going to eliminate that.
00:05:02.319 --> 00:05:03.439
Keep traveling.
00:05:03.600 --> 00:05:09.759
But maybe you looked at your numbers and you realized, damn, I'm spending$900 a month on eating out and ordering food.
00:05:09.920 --> 00:05:13.439
And honestly, I don't even care about restaurants that much.
00:05:13.680 --> 00:05:14.960
That's information.
00:05:15.120 --> 00:05:19.600
Now we found money that's being spent by default instead of intentionally.
00:05:19.759 --> 00:05:22.720
Now, what do you actually want that money to do?
00:05:22.960 --> 00:05:27.920
This is why I spend so much time talking about values and goals with my clients.
00:05:28.080 --> 00:05:32.400
I have one client and her goal is literally to be the rich aunt.
00:05:32.560 --> 00:05:42.720
And I love that because financial goals don't have to sound like I want to max out my 401k, I want to max out my retirement account by the time I'm 42.
00:05:42.879 --> 00:05:55.199
Your goal can be traveling, your goal can be buying a house, your goal can be taking care of family, your goal can be building a business, and your goal can absolutely be the rich aunt who spoils your nieces and nephews.
00:05:55.439 --> 00:05:59.199
There isn't one correct version of a good financial life.
00:05:59.360 --> 00:06:04.800
But your spending today has to leave room for the life that you want tomorrow.
00:06:04.960 --> 00:06:14.800
Otherwise, you're spending all of your money maintaining a life you built by default, all the while wondering why you can't afford the life you actually want.
00:06:15.199 --> 00:06:19.439
So this week, I don't want you asking, where can I cut back?
00:06:19.680 --> 00:06:25.439
Instead, I want you to ask, is the lifestyle I'm paying for actually the life I want?
00:06:25.759 --> 00:06:28.080
Because those are two very different questions.
00:06:28.240 --> 00:06:39.520
And if you're making good money, but you feel like there's never enough left for the things that actually matter to you, this is exactly the work that we do in my 12-week private coaching program.
00:06:39.840 --> 00:06:42.000
We start with your actual numbers.
00:06:42.160 --> 00:06:44.879
We look at where your money is going today.
00:06:45.120 --> 00:06:50.080
And then we figure out what you value and what you want your money to make possible.
00:06:50.240 --> 00:06:55.199
And from there, we build a plan that starts moving your money towards these things.
00:06:55.360 --> 00:06:58.240
Not my version of a good financial life, yours.
00:06:58.480 --> 00:07:06.240
If you're ready to stop wondering where your money went and start deciding where you want it to go, the first step is a consultation call.
00:07:06.480 --> 00:07:10.000
All right, I hope that was helpful and I'll see you in the next episode.
00:00:19.920 --> 00:00:21.120
You make six figures.
00:00:21.280 --> 00:00:22.320
You have a good career.
00:00:22.480 --> 00:00:23.600
You live in a nice place.
00:00:23.760 --> 00:00:24.640
You go out to dinner.
00:00:24.800 --> 00:00:25.280
You travel.
00:00:25.440 --> 00:00:26.640
You buy the things you want.
00:00:26.800 --> 00:00:29.440
From the outside, you look like you're doing really well.
00:00:29.760 --> 00:00:37.920
But then you look at your savings account or your credit card balance or payday is coming Friday and you're already mentally spending that check.
00:00:38.079 --> 00:00:41.680
And you think, how am I making this much money and I still feel broke?
00:00:41.840 --> 00:00:45.600
Today I want to talk about one reason this happens that I don't think we're talking about enough.
00:00:45.680 --> 00:00:49.840
And that is lifestyle inflation or lifestyle creep.
00:00:50.000 --> 00:00:52.800
Your salary grew, so did the cost of being you.
00:00:52.880 --> 00:00:57.039
And at some point, your lifestyle quietly caught up with your paycheck.
00:00:57.200 --> 00:00:59.520
The lifestyle isn't necessarily the problem.
00:00:59.600 --> 00:01:08.800
And now, before you think that I'm going to tell you that you need to cancel everything, stop traveling, move to a cheaper apartment, never order DoorDash again, I'm not.
00:01:09.039 --> 00:01:13.520
I'm a money coach, but I also believe that you are allowed to enjoy your money.
00:01:13.680 --> 00:01:14.640
You worked for it.
00:01:14.800 --> 00:01:18.079
The question isn't automatically, how am I spending too much?
00:01:18.319 --> 00:01:25.040
I think the better question that we could be asking is what I'm spending my money on worth what it is costing me.
00:01:25.200 --> 00:01:36.079
Maybe you have an apartment you love, the luxury gym, the hair, the nails, the travel, the brunch, the conveniences, a nice car, and none of that automatically on its own is a problem.
00:01:36.320 --> 00:01:39.920
The problem is they're all competing for the same dollar.
00:01:40.159 --> 00:01:42.960
And that's the part that I think we sometimes forget.
00:01:43.200 --> 00:01:47.439
Every yes in your lifestyle is a no somewhere else.
00:01:47.680 --> 00:01:50.000
Every dollar can only do one job.
00:01:50.159 --> 00:01:57.200
And so when you say yes to something with your money, you're also saying no, or at least not yet, to something else.
00:01:57.439 --> 00:02:00.480
And that's not actually a bad thing on its own.
00:02:00.719 --> 00:02:04.560
The question is whether you're consciously making that trade-off.
00:02:04.719 --> 00:02:08.400
Maybe you value living in the beautiful apartment in the middle of the city.
00:02:08.560 --> 00:02:09.040
Great.
00:02:09.280 --> 00:02:20.159
Maybe you're willing to spend an extra$700 on where you live because you love the neighborhood and you love walking everywhere and you're close to your friends and you're willing to drive an older car for that trade-off.
00:02:20.319 --> 00:02:21.439
That's a choice.
00:02:21.680 --> 00:02:32.480
But maybe you're spending the extra$700 on the fancy apartment because somewhere along the way, you decided that because I make this much money, I should be living somewhere nicer.
00:02:32.720 --> 00:02:36.560
That is different because now we're not talking about what you value.
00:02:36.720 --> 00:02:42.000
We're talking about what you think your life is supposed to look like at your income level, at your age.
00:02:42.160 --> 00:02:45.040
The invisible pressure to look like your salary.
00:02:45.199 --> 00:02:49.360
Something happens professionally and socially when your income increases.
00:02:49.600 --> 00:02:55.360
Sometimes your spending starts to match your new identity of being successful.
00:02:55.600 --> 00:02:59.280
You start thinking, I make six figures, I should be driving a nicer car.
00:02:59.439 --> 00:03:02.399
I'm a director now, I should be living somewhere nicer.
00:03:02.639 --> 00:03:05.120
Everybody I work with takes these vacations.
00:03:05.280 --> 00:03:06.800
I work too hard to cook.
00:03:06.959 --> 00:03:08.399
I can afford these payments.
00:03:08.480 --> 00:03:13.360
And slowly I can afford this becomes this is just what my life costs.
00:03:13.519 --> 00:03:15.439
That's the six-figure trap.
00:03:15.600 --> 00:03:22.319
Because being able to make the payments is not necessarily the same thing as being able to afford the lifestyle.
00:03:22.480 --> 00:03:29.759
You might technically be able to afford a$900 car payment, but can you pay that$900 car payment and build your emergency fund?
00:03:29.920 --> 00:03:32.319
Can you do it and still invest for your future?
00:03:32.560 --> 00:03:34.720
Can you do it and pay off the credit cards?
00:03:34.879 --> 00:03:39.759
Can you do it and make that trip that you have been thinking about for the last two years?
00:03:40.000 --> 00:03:43.600
Can you do it and still have breathing room in your budget?
00:03:43.839 --> 00:03:48.639
Because your bills getting paid should not be the only thing that your money does for you.
00:03:48.879 --> 00:03:51.360
Your money also needs to fund your future.
00:03:51.439 --> 00:04:00.959
And if maintaining your current lifestyle means that there is constantly nothing left for the things that you say matter to you, then that's worth taking a look at.
00:04:01.199 --> 00:04:05.600
All right, friends, here's your homework for today, because y'all know I love to give you homework.
00:04:05.839 --> 00:04:11.199
I want you to identify the three most expensive lifestyle categories in your budget.
00:04:11.360 --> 00:04:13.280
We're not talking individual purchases here.
00:04:13.360 --> 00:04:20.240
I want categories: housing, transportation, food, travel, beauty, shopping, conveniences, entertainment, whatever they are for you.
00:04:20.399 --> 00:04:27.680
And there's a very good chance that at least one of those is going to be what I call the big three: housing, transportation, or food.
00:04:27.839 --> 00:04:31.280
Those tend to be the three largest expenses in most people's budget.
00:04:31.439 --> 00:04:34.399
Then I want you to ask yourself these three questions.
00:04:34.639 --> 00:04:37.920
Number one, do I genuinely value this thing?
00:04:38.160 --> 00:04:42.480
Number two, what I consciously choose to spend this money again.
00:04:42.720 --> 00:04:44.960
And number three, this is the big one.
00:04:45.280 --> 00:04:48.560
What is the spending preventing me from doing with my money?
00:04:48.720 --> 00:04:50.800
Now that third question, that's the kicker.
00:04:51.040 --> 00:04:55.840
Because maybe you'll do this exercise and you'll realize I absolutely love traveling.
00:04:56.000 --> 00:04:59.600
I spent$8,000 on travel last year and I do it again.
00:04:59.759 --> 00:05:00.240
Perfect.
00:05:00.400 --> 00:05:02.080
We're not going to eliminate that.
00:05:02.319 --> 00:05:03.439
Keep traveling.
00:05:03.600 --> 00:05:09.759
But maybe you looked at your numbers and you realized, damn, I'm spending$900 a month on eating out and ordering food.
00:05:09.920 --> 00:05:13.439
And honestly, I don't even care about restaurants that much.
00:05:13.680 --> 00:05:14.960
That's information.
00:05:15.120 --> 00:05:19.600
Now we found money that's being spent by default instead of intentionally.
00:05:19.759 --> 00:05:22.720
Now, what do you actually want that money to do?
00:05:22.960 --> 00:05:27.920
This is why I spend so much time talking about values and goals with my clients.
00:05:28.080 --> 00:05:32.400
I have one client and her goal is literally to be the rich aunt.
00:05:32.560 --> 00:05:42.720
And I love that because financial goals don't have to sound like I want to max out my 401k, I want to max out my retirement account by the time I'm 42.
00:05:42.879 --> 00:05:55.199
Your goal can be traveling, your goal can be buying a house, your goal can be taking care of family, your goal can be building a business, and your goal can absolutely be the rich aunt who spoils your nieces and nephews.
00:05:55.439 --> 00:05:59.199
There isn't one correct version of a good financial life.
00:05:59.360 --> 00:06:04.800
But your spending today has to leave room for the life that you want tomorrow.
00:06:04.960 --> 00:06:14.800
Otherwise, you're spending all of your money maintaining a life you built by default, all the while wondering why you can't afford the life you actually want.
00:06:15.199 --> 00:06:19.439
So this week, I don't want you asking, where can I cut back?
00:06:19.680 --> 00:06:25.439
Instead, I want you to ask, is the lifestyle I'm paying for actually the life I want?
00:06:25.759 --> 00:06:28.080
Because those are two very different questions.
00:06:28.240 --> 00:06:39.520
And if you're making good money, but you feel like there's never enough left for the things that actually matter to you, this is exactly the work that we do in my 12-week private coaching program.
00:06:39.840 --> 00:06:42.000
We start with your actual numbers.
00:06:42.160 --> 00:06:44.879
We look at where your money is going today.
00:06:45.120 --> 00:06:50.080
And then we figure out what you value and what you want your money to make possible.
00:06:50.240 --> 00:06:55.199
And from there, we build a plan that starts moving your money towards these things.
00:06:55.360 --> 00:06:58.240
Not my version of a good financial life, yours.
00:06:58.480 --> 00:07:06.240
If you're ready to stop wondering where your money went and start deciding where you want it to go, the first step is a consultation call.
00:07:06.480 --> 00:07:10.000
All right, I hope that was helpful and I'll see you in the next episode.
