Lifestyle creep is everywhere. As the phrase suggests, this means that when your income increases or your portfolio grows, your spending also increases.
A nicer car, that fashionable watch, upgraded holidays. What were once luxuries become affordable and the affordable becomes must-haves.
Lifestyle creep is one reason why some people who appear to earn very large incomes still live pay cheque to pay cheque.
Some call it “moving the goalposts” because once we reach a particular milestone in our lives, we then push our wants even further.
A recent study by financial services company Schwab reveals that more than one third of those polled confessed to spending more than they could afford.
They also admitted that their spending was often influenced by their friends’ images or experiences shared on social media.
Lifestyle creep has big consequences. First, it diminishes the joy we feel when we get to the next level. You’ve worked hard for that raise or bonus and invested wisely to grow your portfolio.
But it’s hard to savour those accomplishments when you’ve quickly moved on to the next thing.
A second cost is that it sets us up for a lifetime of always chasing the next thing, what psychologists refer to as the “hedonic treadmill”.
As the financial writer Morgan Housel observes in The Psychology of Money, the hardest financial skill is getting the goalposts to stop moving.
Let’s look at a couple of important factors.
Firstly, many people will choose to add, instead of subtract. Why? Because our minds tend to add before taking away. Subtraction feels less satisfying because our instinct is to grow and build. It’s hard to resist more.
The second factor is social comparison. This is deeply wired into who we are. We humans have always closely looked at what others around us are doing. We frequently imitate others, especially when we admire or envy them.
And in the era of social media? This impulse has been triggered more than ever.
Moving the goalposts, it seems, is very natural. So, what can be done about lifestyle creep? There are plenty of strategies.
First, know your situation. Having a clear grasp on your finances is not easy, but once we do, we can begin to answer a basic question: Can I afford it?
Be aware here that expenses are harder to spot when they involve lots of smaller regular payments such as membership fees, leases or maintenance costs – versus one very large purchase.
But ensuring we have clarity here means we can communicate better with our partners and families and make better decisions.
Second, upgrade with intention.
Upgrades, indulgences and just having fun are good things. A big reason we accumulate wealth is to do the things that we want to do.
Perhaps, though, we can be a bit more deliberate in our spending. Having a sense of where the latest upgrade fits into your official financial plan begs the question: Do you have a written-down financial plan? Most people don’t.
For those who do, we can easily think about how a raise, bonus or windfall fits into our long-term objectives and dreams. If the luxury holiday or lavish new car fits into the plan, go for it. If not, give it a second thought.
Third, check in on your values.
So much of success in our money lives is anchored on knowing what’s truly important to us. When our money is aligned with our values, true wealth is much more achievable.
We should ask ourselves: Is moving the goalposts further out about keeping up with the Joneses? Or is it in sync with the way you want to live your life and model your values?
Next: Pause. In these noisy times, it’s often hard to stop, breathe and reflect on what we have, need, and want.
Research suggests that a source of unhappiness among the rich is that the ability to afford almost anything makes it harder to savour the things they already have.
We can also recognise and even appreciate that the discipline of not spending, even when we can afford it, can be a meaningful exercise.
Lastly, be clever. With your partner or your financial adviser, find ways to understand where lifestyle creep happens and then identify some tactics to avoid or minimise it.
Perhaps you can commit before you’ve obtained a bonus or windfall that you will put a certain percentage aside and then indulge with the balance. Maybe you can tweak your savings rate. The devil is in the details.
Lifestyle creep can undermine our attempts to lead a wealthy life. While we can accept that the push for more is natural, there are many ways to address it.
Sam Instone is co-chief executive of wealth management company AES
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
US PGA Championship in numbers
1 Joost Luiten produced a memorable hole in one at the par-three fourth in the first round.
2 To date, the only two players to win the PGA Championship after winning the week before are Rory McIlroy (2014 WGC-Bridgestone Invitational) and Tiger Woods (2007, WGC-Bridgestone Invitational). Hideki Matsuyama or Chris Stroud could have made it three.
3 Number of seasons without a major for McIlroy, who finished in a tie for 22nd.
4 Louis Oosthuizen has now finished second in all four of the game's major championships.
5 In the fifth hole of the final round, McIlroy holed his longest putt of the week - from 16ft 8in - for birdie.
6 For the sixth successive year, play was disrupted by bad weather with a delay of one hour and 43 minutes on Friday.
7 Seven under par (64) was the best round of the week, shot by Matsuyama and Francesco Molinari on Day 2.
8 Number of shots taken by Jason Day on the 18th hole in round three after a risky recovery shot backfired.
9 Jon Rahm's age in months the last time Phil Mickelson missed the cut in the US PGA, in 1995.
10 Jimmy Walker's opening round as defending champion was a 10-over-par 81.
11 The par-four 11th coincidentally ranked as the 11th hardest hole overall with a scoring average of 4.192.
12 Paul Casey was a combined 12 under par for his first round in this year's majors.
13 The average world ranking of the last 13 PGA winners before this week was 25. Kevin Kisner began the week ranked 25th.
14 The world ranking of Justin Thomas before his victory.
15 Of the top 15 players after 54 holes, only Oosthuizen had previously won a major.
16 The par-four 16th marks the start of Quail Hollow's so-called "Green Mile" of finishing holes, some of the toughest in golf.
17 The first round scoring average of the last 17 major champions was 67.2. Kisner and Thorbjorn Olesen shot 67 on day one at Quail Hollow.
18 For the first time in 18 majors, the eventual winner was over par after round one (Thomas shot 73).
