If you have experienced lifestyle creep yourself or perhaps seen it happen to your clients, you know that this phenomenon can sneak up on people, and controlling lifestyle creep is necessary.
Lifestyle creep, also known as lifestyle inflation, is when a person’s discretionary spending increases as their income rises. This is often due to an increase in lifestyle spending.
So, lifestyle creep can prevent you from building an emergency fund or properly saving for retirement. Also, it can end up causing people to fall into debt, with no savings to rely on.Â
Free, Shareable Resources For Borrowers
So, educate your borrowers on controlling lifestyle creep so that they are prepared when they get their next bonus or pay increase.
The Mortgage Update is a free, shareable resource that you can send to customers.
After all, it is your job as a loan officer to be your client’s guide. So, make sure your borrowers know that they are not alone.Â
So, share this borrower-friendly blog post with clients to help them understand controlling lifestyle creep and how to find balance with their financial circumstances. Also, consider posting this on social media to interact with your customers in a more personal way.Â
Read the Article on Controlling Lifestyle Creep Now:
Bottom Line
It’s entirely okay for your borrowers to reward themselves. Also, it is necessary to start planning for their financial future by controlling lifestyle creep.Â
After all, it is financial slips and excessive spending that has people falling into debt. So, this hurts their future. So, educate your clients on controlling lifestyle creep and the benefits of doing so! Â
