Michael and Brady discuss the concept of lifestyle inflation, where increased income leads to increased spending, often hindering long-term financial goals. They explore how lifestyle creep happens, how to recognize it, and strategies to spend with purpose. By focusing on aligning spending with what truly matters, they propose a shift towards automation and disciplined financial planning. They highlight real-life examples, emphasize the importance of financial literacy, and offer practical solutions for maintaining financial health while enjoying life. This episode is essential for high earners, families, and business owners looking to strengthen their financial fortitude.

Key Takeaways:

• How does lifestyle creep happen?

• What are the strategies for aligning purpose with spending?

• What are the impacts of lifestyle inflation?

• How can we automate savings?

Key Timestamps:

(00:00) - Lifestyle Inflation

(01:33) - Defining Lifestyle Creep

(02:35) - Real-Life Examples of Lifestyle Inflation

(08:54) - Behavioral Aspects of Lifestyle Inflation

(13:04) - Traditional Approaches to Curbing Lifestyle Creep

(16:48) - Reengineering Spending Pathways

(20:51) - Importance of Paying Yourself First

(21:45) - Setting Up a Wealth Building Account (WBA)

(22:51) - Automating Your Savings for Success

(26:40) - Case Study: The Impact of Lifestyle Creep

(29:38) - Purpose-Driven Financial Planning

(35:27) - Power of Accountability

Key Topics Discussed:

Financial Fortitude, Genesis Wealth Planning, Brady Hemmerle, Michael Acosta, Financial Wellness, Wealth Building, Financial Psychology, Financial Advisor, Finance Coach, Student Loan Debt, Finance Guidance for High Earners, Business Owner Finances, Hiring a Financial Advisor, Student Loan Forgiveness, Tax Strategies, Retirement Planning, Investing Strategies, Stock Market Crashes, Millennial Financial Planning, Gen Z Money Struggles, Overcoming Financial Stress, Building Financial Confidence, Modern Financial Goals Strategy, lifestyle inflation, lifestyle creep

Mentions:

Website: https://www.genesiswealthplanning.com/

Michael’s LinkedIn: https://www.linkedin.com/in/michaelracosta/

Brady’s LinkedIn: https://www.linkedin.com/in/brady-hemmerle-cfp%C2%AE-75043013a/

Financial Health Checkup: https://www.livingbalancesheet.com/lbsVision/lite/michaelracosta

This podcast is for informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. Guest speakers and their firms are not affiliated with or endorsed by PAS, Guardian, or (INSERT DBA or AGENCY NAME) and opinions stated are their own. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. All investments and investment strategies contain risk and may lose value.

Michael Acosta is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 6115 PARK SOUTH DRIVE, SUITE 200, CHARLOTTE NC, 28210, 704-5528507. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. (INSERT DBA or AGENCY NAME) is not an affiliate or subsidiary of PAS or Guardian. CA Insurance License # 0M50974. 7237198.1 Expiration 11/26.