Over recent years, my spouse and I have taken firm control over our finances. We were fed up with spending recklessly and having nothing to show for it. However, our financial circumstances transformed when our daughter arrived four years ago. Sharing a mutual financial goal, we want to provide her with a secure future, and this united us even more.
We recognized the need for an immediate lifestyle change, and hopefully, if you are in a similar situation, you can take some lessons from our experience to break free from lifestyle inflation.
ELIMINATE CONSUMER DEBT
We decided to rid ourselves of car loans by paying off our vehicles promptly. Fortunately, we had stopped buying brand new cars which meant our loans were manageable, yet we still had to settle the remaining balance for our used cars.
To us, what matters is having a reliable form of transport that’s safe. We aimed to get the most value from our vehicles by using them until they are no longer serviceable. We now proudly own a couple of Toyotas, both over 100,000 miles and running efficiently.
Paying off our cars taught us the value of economizing, even as others around us maintained a preference for new models. We stayed focused on our goal, even when faced with unkind comments about our practical choices.
ARE YOU AFFECTED BY LIFESTYLE INFLATION? HERE’S HOW TO TACKLE IT!
TWEET
APPRECIATE WHAT YOU HAVE
Now that we no longer have car payments, we recognize that even modest-looking cars can belong to wise investors who could have large savings or investments, preferring to keep their wealth out of depreciating assets.
After freeing ourselves from car loans, our next aim was to rid ourselves of all debt. We sold our boat, breaking even in the process. Our sights were then set on paying off our mortgage as fast as we could.
SAVE MONEY AND TIME BY GETTING RID OF CABLE TV
I’d always known we could make savings by canceling our cable TV subscription. We were essentially paying double – monthly fees, plus our time spent watching endless commercials. Breaking free from this cycle has been liberating, with my newfound time directed towards my freelance writing.
SCALE BACK ON BEAUTY EXPENSES
I used to dye my hair frequently and use a lot of makeup due to personal insecurities. However, I realized this was not only expensive, but it was also damaging to my hair and skin. Giving up on these beauty rituals completely has left me with healthier hair, improved skin, and significant savings. It’s gratifying to feel secure in my natural look and shrug off societal pressure.
PRIORITIZING HOMEMADE MEALS OVER DINING OUT
Cooking at home and reducing our visits to restaurants was a challenging transition in the beginning but was well-worth the effort. Weekly grocery shopping and quick-to-prepare recipes became our routine, which was healthier and more economical despite the occasional splurge on steak.
Our dining experienes were limited to weekends and special occasions, reducing those impulsive dines-outs. Although daunting at first, we now rejoice in the delicious meals we craft together at home.
DID LIFESTYLE INFLATION SNEAK UP ON YOU? HERE’S YOUR PLAN B!
TWEET
DOWNSIZING OUR HOME
The most significant decision we made to curb our lifestyle inflation was downsizing our home. Even though our previous home wasn’t enormous at 1,900 square feet, it significantly exceeded our requirements. Not only did downsizing reduce clutter and monthly bills, but it also enabled us to pay off our mortgage in just a few years.
REVERTING TO SIMPLER TIMES
Reversing lifestyle inflation is a challenging endeavor. However, reflecting on my contentment when I was a broke college student reminds me that abundance doesn’t solely equate to happiness. True satisfaction isn’t about an enormous income, but about allocating your money wisely. In the end, it was absolutely worth the effort.
Have you trimmed certain aspects of your lifestyle? Are there some areas you wouldn’t want to compromise on?
