June 2025 - High Point FCU

What I Wish I Learned in School 6 of 12: Avoiding Lifestyle Creep

Most people assume that they’ll start saving and investing a lot more money if their income were to increase. But, what actually happens after that raise is that their savings percent doesn’t budge and they have no idea where the extra money is going. This is usually due to lifestyle creep. Let’s take a look at this phenomenon, why it happens and how you can avoid it to maintain a life of financial fitness.

What is lifestyle creep?

Lifestyle creep, also known as lifestyle inflation, is when people’s monthly expenses increase along with their income. Unchecked lifestyle creep can ruin long-term financial goals, leaving people in a cycle where higher earnings don’t translate to increased savings or financial security.

Recognizing the signs

Here are some signs that you may be caught in lifestyle creep:

Stagnant savings. Despite earning more, your savings or investment accounts aren’t growing.
Increased debt. You’re consistently taking on more debt to finance a more lavish lifestyle.
Frequent upgrades. You’re constantly upgrading things even though the current model is fully functional.
Tight budget. You’re always running low on money by the end of the month despite an increase in income.

Strategies to avoid lifestyle creep

Follow these tips to stay financially fit under any circumstance:

Establish clear financial goals. Long- and short-term financial goals will help keep you on track.
Create and stick to a budget. Develop a detailed monthly budget that assigns a dollar amount for each spending category. Review and adjust your budget regularly.
Limit your revolving credit. It’s best to keep your credit limit down, even with an increase in your income.
Automate savings and investments. Set up automatic monthly transfers to your savings account.
Mindful spending. To avoid buyer’s remorse, implement a waiting period for significant purchases, such as a 48-hour rule, to determine if the expense is really necessary.
Regular financial audits. It’s a good idea to review your financial statements on a regular basis to see where you may be overspending.
Resist social pressures. Instead of trying to match or outdo online personalities, create your own personal and financial goals, a realistic plan for achieving them and then go and get ‘em!
Live below your means. Even with a higher income, it’s best to spend less than you earn.

Use these tips for active steps you can take to prevent and avoid lifestyle inflation.

High Point Federal Credit Union Awards Scholarships to Collegebound Seniors

Olean, NY – High Point Federal Credit Union has granted $2,500 in college scholarships to five high school seniors to assist them in funding their higher education.

The recipients, who are members of High Point FCU, were selected based on their exceptional academic and extracurricular accomplishments.

Richard Yeager, CEO, spoke about how meaningful it is each year to meet the scholarship recipients and celebrate their hard work and potential. He shared that these moments truly reflect the credit union philosophy of ‘people helping people’, a reminder of the impact that comes from supporting one another and investing in our communities.

The high school seniors who were honored with the scholarships include Sullivan Hoffman and Molly DeRose from Olean High School, Ipshita Patra from Allegany-Limestone High School, Cloey Larabee from Cuba-Rushford High School, and Christopher Osgood from Portville High School.

High Point FCU is the second largest credit union in Western New York, with assets over $400 million. The credit union currently serves over 21,000 members with four locations, 1201 Wayne Street and 206 North Clark Street in Olean, 180 West Main Street in Allegany, 160 S. Main Street in Portville, and 1035 East Main Street in Bradford.