How To Protect Your Budget Against Lifestyle Inflation

March 24, 2025

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One theme that comes up ad nauseam here at TFD is the importance of increasing your income. It is, of course, much easier said than done, but often it’s the only real solution when trying to boost your savings. The trick, though, is to not let a boost to your income boost your non-essential spending so much that you forget why you wanted to earn more in the first place. A little lifestyle inflation can be a good thing, especially if you’re used to only buying the bare minimum and living on a shoestring. But where do you draw the line between finally getting the chance to treat yourself, and accidentally going overboard to the detriment of your budget?

In the first episode of our newest YouTube series, The Budget Fix, we tackle this exact question! Together with financial educator, hypewoman, and all-around rockstar Berna Anat, we’re sifting through the budget of Padma, a millennial woman living in an East Coast city who is figuring out how to budget after more than doubling her income in the last year. Padma is balancing a lot at once: taking care of herself as a first-gen child of immigrants, planning for her mother’s financial future, and finally getting to relax and enjoy herself, all while avoiding lifestyle creep and the lures of overconsumption. Check out the full episode here, or watch it below!

We have two more episodes of The Budget Fix coming up — tune in on Thursdays to check them out, and spread the word! And, if you’re interested in having your own budget (anonymously!) analyzed in the future, we would love to hear from you. Submit your budget here!

Welcome to our weekly series, Ask A Financial Advisor with Kellen Thayer of ​Advisor.com​! Dozens of members of the TFD community love and trust Advisor to help them on financial journeys. Get $500 off your first year with Advisor by signing up through TFD! ​Click here​ to take our short quiz and schedule a FREE consultation call with Advisor today and never make another financial decision alone!

Q: How much money should I have saved if we’re planning to have a child and raise a family?

A: Planning for a child involves both upfront and long-term costs. On average, the first year of a child’s life can cost upwards of $15,000, including medical bills, childcare, and baby supplies. Start by building a separate “baby fund” to cover these initial expenses.

Beyond the first year, factor in ongoing costs like daycare, school supplies, and extracurricular activities. Financially, it’s wise to have at least 3–6 months of living expenses saved in an emergency fund before starting a family. If you don’t have health insurance, secure a plan to mitigate hospital delivery costs.

Eventually you’ll need to consider saving towards future expenses for your child, such as. opening  a 529 education savings account to start saving for college expenses. Having children is a big financial commitment, but with planning and prioritization, you can set your family up for success.

Get $500 off your first year with Advisor by signing up through TFD! ​Click here​ to take our short quiz and schedule a FREE consultation call with Advisor today and never make another financial decision alone!

Advisor.com provides clients with a top notch advising team for a fixed, flat annual fee. Their team of advisors work for you, not commissions, and help you to achieve your smart financial goals through planning, investing, and more.

About Kellen Thayer

Kellen has dedicated his career to helping clients achieve their financial goals through comprehensive financial planning and wealth management. He holds an MBA with a concentration in Finance from the University of Pittsburgh. Before joining Advisor Wealth Management, Kellen worked as an investment advisor at Goldman Sachs partnering with clients with $25mm plus in investable assets and later advised high-net-worth clients at Raymond James. His expertise spans a wide range of financial strategies, always with a focus on empowering clients from all backgrounds to build and sustain their wealth.

I love finding silly, unusual things to do when I visit new cities. A couple years ago I discovered Atlas Obscura, a site that gives you a list of obscure things to see/do in tons of different places. So far I've visited a Salt & Pepper Shaker Museum, I've seen the world's largest cast iron skillet, and this weekend I'll be going to see the inventor of Crocs' personal dinosaur garden. 

If you're a dog parent like me, you know how expensive good quality natural dog chews can be. My boyfriend and I have 3 big dogs so we go through chews like nobody's business around here. I recently found a company called Value Pet Supplies and I couldn't be more thrilled. They have bulk boxes of natural chews at a reasonable price, and incredible customer service. As an added plus, they're a local company to me (I live in Nashville!)

I'd like to shout out another of my favorite local companies, The Green Room. They hand pour the most unique candles right here in Franklin, TN. I have the Heirloom Tomato candle and I love how it makes my house smell like a fresh summer garden. 

As a longtime fan of Dr Bronner's biodegradable soap, I finally tried the almond scent and man I am hooked. It smells exactly like Amaretto, it's so delectable.  

And even though it's only March, I've already found my song of the summer- Relationships by HAIM. I think I have listened to this 6 times a day since it came out. 

🎥 Our March video essay, You’re Being Gaslit By Generational Wealth, drops tomorrow at noon ET over on YouTube. Join us in the live chat during the premiere! And a reminder that $4.99 and up members of the ​Society at TFD​ get the ad-free extended version, available right now!

✨Reminder to join us for our March Society workshop, Your Money Under Trump, happening next Monday, March 31st, hosted by friend of TFD and investing expert, Amanda Holden! This event will cover investing strategy, “ethical” investing, understanding investment markets, as well as social security and financial planning, specifically in these chaotic times. Amanda will answer all of your biggest questions including: Should you invest right now?, How should your portfolio be positioned?, What else can you do to protect yourself financially?, What is going on with Social Security?, How can we use personal privilege and power to build something better for all? and more! Join The Society Premium to register!

🎙️Make sure to check out our latest podcast capsule series, LOVE IS BLIND, BUT MONEY TALKS. This 5-part series is co-hosted by Holly & TFD’s Content & Production Manager (and overall amazing person), Alexa. The entire series is now available for Society Premium members! In this series, they’re deep diving into Love Is Blind season 8 as well as previous seasons, who we adored, who we may need to warm up to, why money and political conversations should be featured more in (and out of!) the pods, and how the show has proven that love really isn’t blind. Our next podcast capsule series is dropping in May. Stay tuned for more deets!

📉Check out Chelsea’s latest political rant over on our YouTube channel. She’s sharing her personal thoughts about the current political chaos and her thoughts on the recent headlines about a potential recession over on our YouTube channel. This candid video, it’s lowkey giving recession, I fear, is a must-watch!

🎬And in company news, we’re thrilled to share a new YouTube series we’re ~producing~ with our friends at Edelman Financial Engines. The series, Ask The Planners, is exciting for us because it’s the first time we’re in producer-mode for a brand other than ourselves, and we’re thrilled to be working with them on it! With the new year in full swing, we know financial goals are top of mind. But are you setting yourself up properly? This series is packed with expert insights from their financial planners to help you build a solid financial future. New episodes drop every Thursday! We’d love if you would check it out.

🎥And don’t forget to check out our latest YouTube capsule series, Asked & Answered, cohosted by Chelsea & Erin Lowry of Broke Millennial. This is a 6-part series dedicated to answering your personal money questions, from budgeting and investing basics, to navigating the financial headlines of our current political climate. , The first 3 episodes are already available to watch on YouTube, with new episodes dropping on Sundays!

The Society at TFD is our members-only community with access available on both YouTube and Patreon. Joining The Society is the best way to directly support TFD! The Society offers the exact same things on both platforms, so choose whichever one you prefer!

We offer 3 tier options:

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The Society at TFD: $4.99/month — includes everything in the $2.99 tier plus:

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