00:00The richest people I know are keeping their expenses pretty close to what it was when
00:04they were making $60,000 or $80,000 a year, and now they're making $250,000.
00:10When you go from $40,000 per year to $60,000 per year, you technically should be able to
00:15pocket that extra $20,000 per year.
00:19Instead, we tell ourselves things like, I work so hard, I deserve a new car, or I can
00:24afford to get a bigger place to live in.
00:26So now, even though you make $20,000 more per year, you actually still have zero extra
00:31dollars per year to actually go work for you in the stock market.
00:36Had you taken the $20,000 per year and put it in the S&P 500 that returns 10% each year,
00:42within 10 years that would have grown to over $318,000.
00:47Lifestyle creep is where you start to buy things that you technically can afford, but maybe
00:52you shouldn't be buying because now your expenses are rising with how much money you're making.
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