Latest news with #lifestylecreep
Yahoo
a day ago
- Entertainment
- Yahoo
'I Pretty Much Spent Everything I Earned,' Admits 'Harry Potter' Star Jason Isaacs on His Money Habits
"I pretty much spent everything I earned," actor Jason Isaacs recently admitted, acknowledging that decades of Hollywood paychecks never swelled his savings. The 62‑year‑old, who played Lucius Malfoy in the "Harry Potter" film series and Timothy Ratliff in HBO's "The White Lotus," spoke candidly in an interview with New York magazine about how he matched each raise with equal spending. His candor throws fresh light on lifestyle creep—the silent budget siphon now dogging households even as wages climb and prices cool. Lifestyle Creep Bites Even Wizards Isaacs told New York magazine he earned about $40,000 for every "White Lotus" episode—modest by prestige‑TV standards—yet still "expanded my outgoings to match my incomings." Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab $100k+ in investable assets? – no cost, no obligation. Producer David Bernad told The Hollywood Reporter that the cast is paid one equal rate. That flat structure, according to Bernad, values art over earnings and keeps budgets trim. Isaacs' confession echoes past stars who vaulted from indie stages to franchise fame only to watch wealth slip away. "Many feel as though they have to spend more as they progress through career milestones," certified financial planner Matt Saneholtz of Tobias Financial Advisors told CNBC for a story on Isaacs' habits, warning the approach "goes against everything" he teaches about building lasting wealth. Saneholtz says that what begins with a few upgraded purchases—like nicer hotels or premium subscriptions—can quietly grow into a steady habit of overspending. Trending: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Planner Urges Automatic Investing Saneholtz advises routing a slice of every raise straight into an investment account before it reaches checking. "You won't miss what you don't see," he said, urging quarterly budget reviews and subscription audits. Fellow planner Robert Persichitte expanded the point, telling Business Insider that high‑ticket items like larger homes lock people into lifestyles that are hard to unwind, making it crucial to distinguish between being rich and being wealthy. Both advisers frame investing as an antidote: every dollar diverted to index funds today can snowball through compounding rather than vanish on fleeting luxuries. Automatic transfers also blunt decision fatigue, Saneholtz said, because savings grow untouched while discretionary funds remain visible for daily needs. Persichitte added that visibility matters: "If your net pay doesn't go up, you don't feel rich, and you don't feel the need to spend." Their shared blueprint—save first, spend later—mirrors guidance in Vanguard's long‑running "pay yourself first" Show Thin Safety Nets Federal Reserve data underline the stakes. Its latest Survey of Household Economics and Decisionmaking found just 63 % of adults could cover a $400 emergency with cash, matching 2024 levels yet below the pandemic peak. The Fed has noted rising living‑cost worries despite steady employment gains. Meanwhile a Bankrate poll released last month showed 26% of U.S. adults believe they must earn at least $150,000 a year to feel financially secure, up from 25 % last year. Saneholtz links the numbers, saying lifestyle creep quietly widens the gap between perceived comfort and real financial cushions. Once higher paychecks become the norm, cutting back can feel like failure. He urges clients to automate raises toward retirement goals before lifestyle inflation takes hold. Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 'I Pretty Much Spent Everything I Earned,' Admits 'Harry Potter' Star Jason Isaacs on His Money Habits originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
CBS News
5 days ago
- Business
- CBS News
4 credit card debt relief options high earners can pursue now
Think a high six-figure salary protects you from racking up credit card debt? You may want to think again. While it's easy to assume that earning more results in wealth accumulation, not debt accumulation, it turns out that credit card debt can be an issue for nearly every type of earner. Case in point? A recent BHG study shows that 62% of high earners — categorized in this case as those earning $300,000 per year or more — still struggle to keep their balances under control, defying the myth that a high income equals financial security. So, why do even top earners get stuck in the debt cycle? Well, there are numerous reasons for it, but in large part, the issue boils down to two words: lifestyle creep. For many high earners, as paychecks grow, so do the expenses, from bigger homes and luxury cars to private school tuition and lavish vacations. Add in other factors, like higher tax brackets and sticky inflation, and suddenly that hefty paycheck doesn't stretch nearly as far as you'd expect. And, without strategic planning, large financial obligations and easy access to credit can leave even high earners living paycheck to paycheck. That doesn't have to be the case, though. If you're earning a high salary, there are targeted debt relief strategies you can use to crush your credit card debt for good. Find out what credit card debt relief options are available to you today. The following credit card debt relief options may be worth considering if you're earning a high salary: Debt consolidation lets you roll multiple high-rate credit card balances into one fixed-rate loan, and pursuing this path now could help the right borrower save significant amounts on interest charges. After all, the average credit card rate is closing in on 22%, just under a record high, meaning that the compound interest charges can rack up quickly, but the average personal loan rate is closer to 12%. So, swapping out your high-rate card debt for a loan with a rate that's 10 points lower can be a good move. And, because the average high-income earner has both a hefty spending capacity and a credit score of 774, which is categorized as "very good," they can generally qualify for loans with top rates that are large enough to cover six-figure balances. That makes debt consolidation worth serious consideration if you're a high earner, as this move can translate into hundreds or thousands of dollars in saved interest per year. Learn how the right strategy could help you get out of debt for good. If you qualify for a 0% APR balance transfer offer, you can move your high-rate debt to a single card and focus on paying off what's owed without being charged interest for a period of 12 to 21 months or more. And, because high earners are often given access to higher credit limits due to their higher salaries, this route can be a great way to get rid of your debt without more interest charges accruing. Given today's high average credit card APR, taking advantage of the opportunity to wipe out interest may be particularly compelling. Doing so could save you thousands of dollars worth of interest charges, provided that you pay off what's owed during the promotional period. Just remember that once the promotion expires, the full rate kicks in, so paying off the balance during the initial period is key. Another way to get some relief from your credit card debt is to simply pick up the phone and ask your issuer for a lower APR. High earners with strong payment histories often have more leverage in these conversations than they realize. Card issuers want to retain reliable, profitable customers, after all, and if you're carrying a large balance, they may agree to reduce your rate to keep you from moving your debt to a competitor. While a lower rate won't erase your credit card debt, it can significantly reduce the cost of carrying it as you work toward paying it off faster. For example, if you're currently paying 22% interest on a $50,000 balance, negotiating even a modest reduction to 16% could save you hundreds of dollars each month on interest charges. High earners often juggle complex financial situations between bonuses, stock options, equity compensation and income taxes. But a good advisor can parse through that complexity to create a tailored debt-payoff plan. For example, redirecting a bonus or stock sale toward high-rate debt can deliver huge returns if done strategically. Working with a debt coach can help curb lifestyle creep by keeping you accountable and adjusting habits so rising income doesn't mean rising spending. This route may not result in the same types of savings as you'd get from other approaches, but it's an extra layer of protection for your finances, and right now, with economic pressure rising, that guidance can turn good intentions into real progress. Being a high earner doesn't make you immune to the challenges of credit card debt. Despite having more resources, more than half of high earners still struggle to keep up with their monthly payments according to a recent study, so if you're facing this type of issue, you aren't the only one — and more importantly, you have options to pursue. Whether through balance transfers, debt consolidation or direct negotiation, you may be able to reduce your interest costs while creating a sustainable path to debt freedom. Whatever option you pursue, though, it's equally important to address the underlying spending habits that created the debt to ensure these relief strategies lead to lasting relief rather than a temporary fix.
Yahoo
7 days ago
- Business
- Yahoo
Common pay rise mistake costing Aussies $1 million: 'Going backwards'
It often seems like it doesn't matter how much you earn, you don't seem to get ahead. This is the trap of lifestyle creep, the silent wealth killer that's killing the progress of most Aussies trying to get ahead. And it's not just about buying a fancy car or lux overseas holidays. Lifestyle creep is the subtle, almost invisible rise in your spending that comes with an increasing income. And it's the reason so many people feel like they're going backwards, even when their income is higher than it's ever been. The illusion of more The average salary across Australia today is $102,731 p.a., which sounds like a big number - but it doesn't always feel that way. The issue isn't that you're doing something wrong, it's that your expenses keep going up without you noticing. RELATED Aussie couple on $330,000 reveal 'trap' that saw them in $151,000 debt CBA, NAB, ANZ reveal $200,000 move borrowers making after RBA interest rate cuts Commonwealth Bank, Westpac reveal major payment change for millions of customers You get a pay bump and move a little closer to work, or into a home with a little more space. You want to provide decent care and schooling for your kids. You add a second car because you need to. And maybe there's just a little bit more of enjoying the nicer things because you see people in your circle doing it too. None of these things are irresponsible. But that's exactly how lifestyle creep works… It turns things that used to feel like luxuries into your new normal. Whether it's school fees, home upgrades, or just a bit more spending on eating out, the effect is the same - you earn more but don't build more. A recent survey from Compare Club found that more than one-third of Aussies earning $200,000 plus live paycheck to paycheck - with 50 per cent of their income going straight to bills. That's not a luxury problem, it's a structure problem. The real cost of creeping expenses To put this in perspective, I wanted to give an example. Let's just say you get a pay rise of $200 each month. It's not nothing, but it feels small and it's easy for this extra cash to be absorbed into your spending. But if you'd invested the money instead, over ten years you'd see the money grow to $39,558. This isn't life changing, but keep this going and things escalate quickly - over the next 10 years, the money would grow to $140,310. Another ten years would see the money grow to over $396,000 - and ten years more would see the money grow to a cool $1.05 million. This is based only on the average Australian sharemarket return of 9.8 per cent, something that's simple enough for anyone to achieve with a basic index fund. That's over a million dollars, just from a pay bump that could just as easily have disappeared without you even really feeling it. And that's the real cost of lifestyle creep. Lifestyle creep doesn't happen because people are reckless - it happens because you're human. Each small expense and upgrade feels justified, and just because it doesn't wreck your budget, it doesn't feel like a problem. But the thing is that every extra dollar that goes towards funding your 'new normal' is a dollar that's not going towards hitting your next financial milestone - whether that's a home deposit, passive income target, or building an investment portfolio that gives you choices. How to beat lifestyle creep If you don't want to be a lifelong victim to lifestyle creep, there are two key things you need to do. The good news is, they're both simple - but will completely change the game when it comes to your money (and your progress). Nail your banking structure Most people operate with one main bank account and a vague mental budget, but that doesn't really work if you're serious about getting ahead. The solution is to create an automatic savings system that works for you on autopilot. There are a few key elements that should be part of your savings system. The first is ensuring that when you get paid, one of the first things that happens is that money is sent to your savings or investments automatically without you having to do anything. Not at the end of your pay cycle, but the beginning. The next most important key ingredient is having your day-to-day spending separated from your bills and your other money. This means your bills will get paid on time without you having to think about them, and just as importantly, when you get your next pay bump, it will get captured rather than just absorbed. There are a lot of different ways to be right when it comes to your savings, but it's important you have some structure. It doesn't need to be perfect from day one, but you do need to get started - from there you can refine and optimise it over time to improve your results. Get clear on what your money can do for you It's really easy to justify extra spending when you don't have a bigger plan. But the moment you connect your money to a clear target or outcome; your next property, your first $100,000 in investments, or hitting a passive income target, every dollar starts to matter more. Finding an extra couple of hundred dollars a month, as shown above, could grow to be worth over a million dollars over the course of your working life. That's not just nice-to-have, that's life changing - paying off your mortgage, building a passive income stream, or a big step towards true financial security. When you start to think about your savings as the seed capital for your future, not just deferred spending, it becomes a lot easier to say no to the things that don't move you closer to what's really important to you. Small financial wins today will lead to huge milestones in the future. All you need to do is give your money a job, and then watch the mindset shift as you start crushing your goals. The wrap Lifestyle creep is the silent killer of your financial momentum. It doesn't come through loud, instead it shows up in small, incremental shifts that you hardly notice in the moment. But over time, it robs you of the very thing your income should be buying - freedom. If you want to get ahead, the key isn't just to earn more - it's to keep more. Earning well is great, but it means nothing if you're not using your money to get ahead. Ben Nash is a finance expert commentator, podcaster, financial adviser and founder of Pivot Wealth. Ben's new book, Virgin Millionaire; the step-by-step guide to your first million and beyond is out now on Amazon | Audiobook. If you want some help with your money and investing, you can book a call with Pivot Wealth here. Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it, and where appropriate, seek professional advice from a finance in retrieving data Sign in to access your portfolio Error in retrieving data
