The Money with Katie Show #12: MY TOP 3 FINANCIAL LESSONS OF 2021: Earning More, Lifestyle Creep, and the Truth About Alignment
Dec 22, 2021
A reflection on three key financial takeaways from 2021. Short thoughts on when small purchases truly add happiness. A warning about creeping lifestyle upgrades and their lasting impact. A look at how pursuing work that fits your strengths can make money feel easier.
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Buy Incremental Joy When It Matters
- Do buy small things that reliably boost your happiness when you can afford them.
- Katie realized after making six figures that a $5 coffee on a Saturday often improved her whole day and wasn't worth skipping.
Lifestyle Creep Is Hard To Reverse
- Recognize lifestyle creep is real and is easiest to accept when intentional.
- Katie warns that upsizing (like nicer housing) changes expectations and is hard to reverse once normalized.
Doubling Rent Changed Her Expectations
- Example: Katie doubled housing cost moving from Dallas to Fort Collins and found it hard to imagine returning to apartment life.
- She moved from a 1,100 sq ft two-bedroom at $1,700 to a nicer home at $3,000 monthly and felt the standard change.