TPC Gold | Is Lifestyle Creep Holding You Back?

This snippet is from one of our previous episodes: Seven Tips to Trap Your Surplus Cash 

They say “success leaves clues” – but so does a bank balance that never seems to grow, no matter how much your income increases.  

In this bonus TPC Gold snippet, Bryce and Ben unpack one of the most common (and quietest) traps that can sabotage your financial freedom: lifestyle creep. 

If you’ve ever found yourself upgrading from budget wine to boutique wine… or wondering where your surplus went after a pay rise… this one’s for you. 

Tune in as the boys break down: 

• What lifestyle creep really looks like (and how to spot it in your own spending) 
• The difference between conscious lifestyle upgrades and unconscious spending 
• Real-life examples from Bryce, Ben and some of the wealthiest people we all know 

Because it’s not about depriving yourself. It’s about being intentional with your money – so you can spend more on what really matters, and less on what doesn’t. 

The Silent Killer of Your Wealth Plan

Lifestyle creep is sneaky—but you don’t have to let it win. 

Moorr is our smart money platform designed to help you build wealth on your terms. Powered by the MoneySMARTS system, it’s perfect for everyday Aussies who want more control and clarity over their finances. 

Achieve more with Moorr >>

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If You Enjoyed TPC Gold | Is Lifestyle Creep Holding You Back? You Might Also Like:

• TPC Gold | What’s the “Magic Pill” to Wealth? 
• TPC Gold | Types of Wealth – What Type of “Rich” Are You? 
• TPC Gold | Why High Earners Stay Broke (And How to Fix It) 

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Transcript

Bryce Holdaway
So number one, stop checking out the Joneses. Number two, stop and consider before you tap and go. Number three is get Money SMART. Number four is have difficult conversations early, Ben. Number five… this is a big one.  

Ben Kingsley
What’s number five? 

Bryce Holdaway
Avoid lifestyle creep. So what does that mean? It means that when you are a uni student on casual wages, Ben, you went and got down to the bottle shop and you got the really cheap wine. And then as you get your advanced roles, you might start to… I don’t drink so I’m going to sound like a nut to you, but Dom Perignon or some fancy bottle of…  

Ben Kingsley
…Penfolds? 

Bryce Holdaway
There you go, thanks for rescuing me there. But does this $27 bottle of wine really taste any better than the $9 bottle? Now, I’m not qualified to answer, but people who do drink a lot, they tell me that there’s not a lot of difference right? …Ivise is not agreeing with that.  

Ben Kingsley
She’s a single malt whiskey drinker. But this is my point. The point is, if that is what you want to have, then don’t neglect yourself from the things you enjoy… just in moderation. And a lot of people might be thinking, how’s that different from keeping up with the Joneses? Well, here’s the deal. I drive a 2012 Volkswagen Golf. I could afford to drive a better car and a newer car. And the area that I live, it’s full of new Mercs and new Audis. I don’t have new cars, right? So that to me is like, if you judge me on my car, you don’t know who I am, right? But coming down to this one about the lifestyle creep… it’s going from the budget beer to the boutique beer to the craft beer to the imported beer, whatever it looks like.  

Bryce Holdaway
It’s the tickets in the outer to the tickets in the medallion club. And so the point here is to just be aware that just because your income’s increased doesn’t mean your lifestyle has to increase, if it doesn’t add any extra happiness to your life. If you love a really expensive bottle of red, knock yourself out. Again, I’m not qualified to talk about that. But the point is it’s a cup size. And be aware that you have a cup and you’ve got to consciously expand that cup. By cup size I mean the difference between what your income is and your expenses is your cup. Now if your income rises, your cup size remains the same. It’s gonna drag your expenses with you. What’s ideal is the income increasing and your expenses not tracking up at the same rate. It means you get more surplus, you get to trap that and you get to put more into what you want to do.  

Ben Kingsley
And you can have more experiences. So what’s a good example of that? Let’s say you love live music, and let’s say you have your favourite two live concerts that you will do anything to get to. They’re your favourite bands in the world. Coldplay might be one. They do amazing concerts, right? So if Coldplay was coming out again, I’d probably want to get on the floor. I’d probably want to immerse myself; be close to the band. But if, you know, I went to Pink when she came out, I didn’t care where I sat. I was still happy for the experience.  

Bryce Holdaway
Well, she came to you. 

Ben Kingsley
Yeah, she flew all around but that’s the point isn’t it? I chose to pay less for that ticket but more for the ones that meant more to me. You know… Australia are playing the US in basketball (and) basketball is the game that I grew up with and I played for all my life. So it’s like: okay well am I ready to get that really ultimate experience? Can I afford to… because I’ve made some sacrifices in the past to be in the position that I’m in today and they’re the types of things that are going to fill my bucket? It’s not so much about how many material things I’ve got, that’s the thing. They’re the decisions we make. But we bring it down to day to day, because that’s what we’re talking about, trapping more surplus. If we bring it down to those day-to-day things, it is a choice of that $14 bottle of wine (and you find a really nice one) versus the $25 bottle of wine. Because chances are if it’s any good, it’ll go to $25 next year. So hook into it early.  

Bryce Holdaway
There’s a tip for ya!  

Ben Kingsley
Buy a dozen bottles of it. But it is things like that, in terms of being conscious about that. Because it’s amazing what $10 here, $50 there, $100 there does over the course. Because that money sitting either in a savings account or sitting in an offset account… it’s making your money work harder for you.  

Bryce Holdaway
Yeah, I’m with you Ben. Jan Somers drives around in a 2004 320 BMW. That’s what I drive around in a 2004 320.  

Ben Kingsley
Go to bigger than that. Go to Warren Buffett. He drove around in a middle class, standard American car and I think he’s upgraded to a Toyota Camry.  

Bryce Holdaway
And he gets his $3.20 that he gives to McDonald’s in the morning. 

Ben Kingsley
And that’s a good market day. 

Bryce Holdaway
But success leaves clues. 

Ben Kingsley
It does. 

Bryce Holdaway
Jan Somers… she hasn’t got lifestyle creep. She can afford whatever she wants.  

Ben Kingsley
Gerry Harvey’s another one; flies cattle class, so doesn’t go up the front of the bus. Doesn’t see the need to go up the front of the bus. Doesn’t see that that warrants the money, the experience, the value for a short period of time. 

Bryce Holdaway
And so for the avoidance of doubt, just to make sure I haven’t said anything that upsets anyone…. Do what you want with your money, just the overarching principle here is (to) be conscious of the cup. Be conscious of the lifestyle creep. And be aware of: do you actually need it or you just doing it because you’ve got more income? 

Ben Kingsley
Can I summarise that? Money has consequences. You make a decision and there’s a consequence. There’s an opportunity cost in every dollar that you spend.  

Bryce Holdaway
Love it.