The Best Way for Dual-Income Couples To Beat Lifestyle Creep
In a recent Reddit post shared to r/povertyfinance, the original poster expressed high hopes for new financial horizons as his wife finally scored a career-worthy job after a long period of unemployment and education. And while the OP was overjoyed at the prospect of having more discretionary income after a prolonged dry spell, concerns around lifestyle creep reared their head in his post.
Many Americans are in the exact same position, with lifestyle creep being a major cause of anxiety for those who might have experience in living frugally – but no longer. What steps can couples take to cut down on the dangers tied to lifestyle creep?
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Be Patient and Determine How Much Your (or Your Partner’s) New Income Is Actually Worth
It’s very good practice to let the shine wear off on the new job before diving into any unnecessary new expenditures – not only because job fit hasn’t properly been addressed, but also because you have to see how this additional income might look after taxes, potential transportation or childcare costs, and other considerations.
Also, the IRS suggests that it’s wise to review federal tax withholding after landing a new position. Doing so could help you avoid a very unpleasant tax bill!
Ensure You’re on the Same Financial Page as Your Significant Other (and Not Hiding Any Money Secrets!)
Recent data from Fidelity Investments’ 2026 Couples & Money study shows that nearly half – an alarming 49% -- of people dodge money discussions with their romantic partner. Further, nearly one-quarter of respondents admitted to “hiding a financial secret from their partner.”
Don’t be these people, particularly when a new income stream enters the mix. Fidelity suggests setting aside at least one period of time a month to sit down and have a casual “money date” where your fiscal present and future are gone over with a bit of a positive spin. Low-stakes conversations were also advised over bigger-picture items, with the latter coming into play after you both become more comfortable talking on the topic of money.
Automate Future Savings, Investments and Payments Around Paydays
Set your savings contributions and retirement plan contributions to be automated just after paydays, Fidelity also advised. A goal of 15% in pre-tax income is the bar, and employer match situations call for the maximum comfortable contribution to be made whenever possible. This ensures that you’re guaranteeing your future, relatively speaking, versus blowing the fast (and new) cash now.
Necessary bill payments should follow a similar, if not the same, cadence. When your funds hit your account, shortly thereafter the essential living expenses (rent, mortgage, utilities, etc.) should be taken out. This prevents you from entering a debt spiral, while also showing you exactly how much fun money there actually is, left sitting in your account.
Enjoy the Little Things New Income Brings, but Avoid Permanent Expenses
It’s important – much like when discussing any act of moderation, whether we’re talking about junk food or partying – to note the distinction between temporary or one-off expenditures made in the name of fun, and more permanent costs added to the monthly or annual budget.
For example, this new income could afford you the ability to take that dream vacation you’d always wanted, or to dine out once a week. Should misfortune strike, you’re not buried in unnecessary debt.
On the other hand, using the new income stream to fund obligations such as new car payments, a pricey new property, or other escalation in recurring expenses could prove very dangerous – particularly if job loss strikes, or assets take a big downturn.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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