Lifestyle Creep: How to Avoid Overspending as Your Income Grows – A Conversation in Dubai
Introduction:
It’s a Friday afternoon in Dubai. Two friends—Amit, a pragmatic and financially conscious engineer originally from India, and Ryan, a British marketing professional who enjoys the finer things in life—are catching up over coffee in Downtown Dubai. They’re both in their early thirties, living the expat life, enjoying career growth, and... dealing with very different approaches to money.
Amit (sipping his Americano):
“Man, I’ve been thinking—this city really tests your willpower. Every time I get a raise, it’s like I want to upgrade something. New watch, weekend staycation, fancy gym membership…”
Ryan (laughs while checking his Apple Watch):
“That’s the point, bro! We’re in Dubai. You’ve gotta enjoy it. What’s the point of hustling if you’re still living like a student?”
Amit:
“I hear you. But ever heard of lifestyle creep?”
Ryan:
“Sounds like a horror movie. What is it?”
What Is Lifestyle Creep?
Amit (grinning):
“Not a horror movie, but financially, it can be. Lifestyle creep is when your expenses increase as your income increases—so instead of saving more, you just spend more. And before you know it, your bank account looks the same despite making double.”
Ryan:
“Okay, maybe I’m guilty of that... I upgraded to a nicer flat and I eat out way more now. But isn’t that normal?”
Amit:
“Totally normal. But not always healthy. Morgan Housel, in his book ‘The Psychology of Money’, says, ‘Wealth is what you don’t see.’ The fancy apartment, gadgets, travel—those aren’t signs of wealth. Saving is.”
Ryan:
“That’s deep. But I’m not trying to be cheap either.”
The Fine Line Between Enjoyment and Excess
Amit:
“It’s not about being cheap—it’s about being intentional. Think of money like calories. If you’re not tracking what you consume, you can slowly gain weight without realizing. Same with money.”
Ryan:
“So, what’s your plan? Live in a box and eat lentils forever?”
Amit (laughing):
“Not quite. But I do something called Zero-Based Budgeting. Every dirham I earn has a job—whether it’s saving, investing, or spending. That way, I can enjoy my money, but I won’t be broke at 40.”
Ryan:
“You sound like an app.”
Tech & AI Tools to Beat Lifestyle Creep
Amit:
“Speaking of apps—tech helps a lot. I use You Need A Budget (YNAB). It follows zero-based budgeting. There’s also PocketGuard that alerts you when you overspend.”
Ryan:
“Sounds intense.”
Amit:
“Not really. These tools are smarter now. Even AI-powered assistants like Cleo or ChatGPT can track habits and suggest cost-cutting ideas. If you tell Cleo your spending limit, it’ll literally roast you if you overspend.”
Ryan (laughs):
“AI roast master? I might try that.”
Amit:
“Seriously though, you can automate savings with tools like Qapital. It rounds up your purchases and saves the difference. Or set rules like ‘save AED 100 whenever I order food online.’ That’s gamification for saving.”
How to Defend Against Lifestyle Creep in Dubai
Ryan:
“Okay, say I want to get smarter. What do I actually do?”
Amit:
“Start with these money management tips:
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Cap lifestyle upgrades to 50% of your raise—save or invest the rest.
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Audit your subscriptions—Dubai gyms and streaming services stack up fast.
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Delay upgrades—give yourself 30 days before making big purchases.
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Track net worth, not income. Use tools like Personal Capital or Monarch Money.
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Invest regularly—even AED 1000 a month into ETFs makes a difference long-term.”
Ryan:
“Right... That’s the part I always skip. I think short-term, you think long-term.”
Amit:
“And that’s okay. But as Housel says, ‘Saving is the gap between your ego and your income.’ You don’t have to impress anyone.”
Conclusion:
As the sun sets behind the Burj Khalifa, the conversation shifts to lighter topics. But something’s changed. Ryan seems thoughtful.
Ryan (finishing his coffee):
“You know what? I’ll start with Cleo and do a spending audit this weekend. No promises, but… maybe I won’t get that AED 800 brunch package.”
Amit (smiling):
“Progress, my friend. One dirham at a time.”
Final Thoughts for Readers:
Lifestyle creep is subtle but powerful. In a high-income city like Dubai, it’s easy to let rising earnings lead to unchecked spending. But intentionality, tech tools, and a shift in mindset can help you build real wealth while still enjoying life.
Books to Read:
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The Psychology of Money by Morgan Housel
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Your Money or Your Life by Vicki Robin & Joe Dominguez
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I Will Teach You to Be Rich by Ramit Sethi
AI Tools to Explore:
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Cleo (budget assistant with personality)
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ChatGPT (ask for financial planning prompts)
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YNAB, Qapital, PocketGuard (automated budget & savings tools)
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