EP 89: Avoid Lifestyle Creep through Tiny Living
How Lifestyle Creep is Stealing Your Freedom—and How Tiny Living Can Help
If you’ve ever wondered why your expenses keep creeping up, even when you make more money, you’re not alone. Lifestyle creep is sneaky. It happens when former luxuries turn into everyday necessities, and before you know it, you’re working harder just to keep up with a lifestyle you didn’t intentionally choose.
What is Lifestyle Creep?
Lifestyle creep occurs when an increase in income leads to an increase in discretionary spending. The problem? Much of that spending doesn’t actually add joy or fulfillment—it just becomes the new norm.
Take the 2024 holiday season, for example. Americans spent a record-breaking $994 billion, averaging $3,792 per adult. That’s a massive increase from non-holiday months, where retail spending per adult is around $2,705. And much of that holiday spending ended up on high-interest credit cards and buy-now-pay-later programs. People are literally working now to pay off last year’s purchases.
Signs That Lifestyle Creep is Taking Over
Eating out so often that it no longer feels like a treat
Accumulating so many clothes that your closet overwhelms you
Buying or renting more house than you actually need or use
Subscribing to multiple streaming services but only watching a few
Taking on home renovation projects just to “keep up” with trends
If any of this sounds familiar, don’t worry—you’re not alone. The good news? There are ways to escape the cycle.
Why Tiny Living is the Ultimate Lifestyle Creep Hack
Downsizing to a tiny house on wheels or adopting a minimalist lifestyle isn’t just about saving money—it’s about reclaiming your time, energy, and financial freedom.
When you intentionally reduce your living space, you naturally limit the temptation to accumulate unnecessary stuff. There’s simply no room for clutter! A small space living mindset shifts your focus from keeping up with consumer trends to truly enjoying what you have.
Take it from me—moving into a tiny home helped me break free from the pressure of constant home upgrades. When we bought our American Dream house in 2018, I felt an obligation to renovate it to match the latest trends: granite countertops, open floor plans, the whole Instagram-worthy package. But in reality, the house was perfectly functional as it was.
Fast forward to tiny house living, and I no longer feel that pressure. My home is exactly what I need—nothing more, nothing less. And the best part? I’m not sinking money into unnecessary upgrades or excessive square footage.
How to Keep Lifestyle Creep in Check (Even If You’re Not Ready for a Tiny House Yet)
If you’re not quite ready to downsize completely, here are a few ways to resist lifestyle creep while still maintaining financial freedom:
Limit Your Square Footage: Even if you don’t move into a tiny home, consider downsizing your living space. A smaller home means fewer things to upgrade and lower maintenance costs.
Spend with Intention: Before making a purchase, ask yourself—does this truly bring me joy, or am I just trying to keep up?
Reevaluate Wants vs. Needs: Growing up, holiday gifts often included essentials like coats and boots. Today, we buy everything we “need” instantly, making holiday gifting an exercise in excess. What if we rethought our approach?
Invest in Experiences Over Stuff: Instead of buying the latest gadgets, consider spending money on activities that create lasting memories.
Are You Living According to Your Values?
One of the biggest challenges in avoiding lifestyle creep is knowing what truly matters to you. If you want to make sure your spending aligns with your real priorities, take the Unconventional Values Quiz over at thetinyhouseadviser.com. It’s a great way to reflect on what you actually want out of life—rather than just following the script society hands you.
Final Thoughts
Lifestyle creep is a real challenge, but by being intentional with your spending and considering alternative living options, you can reclaim control over your finances and your time. Whether you downsize to a tiny home or simply start questioning your purchases more mindfully, every step toward financial independence is a step toward freedom.
Want to figure out if alternative living is right for you? Take the Unconventional Values Quiz today and start living life on your own terms.
Takeaways from the episode
“Consumer spending is often driven by societal pressures.”
“Lifestyle creep is when our standard of living rises with income.”
“Lifestyle creep steals away our income”
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