Lifestyle Creep is Dangerous for Young Professionals

YOUNGSTOWN, Ohio — Leveraging compound interest helps individuals avoid lifestyle creep, which Tim Petrey, managing partner at HD Davis CPAs LLC, says is the “most dangerous thing for young professionals.”

Lifestyle creep is a phenomenon where, as professionals earn more, that drives them to make more expansive lifestyle choices, such as a new car, larger home or nicer clothes.

“If you can avoid lifestyle creep, then all of a sudden you’re 10 years into your career and you’re set. Your first 10 years can set the tone for the rest of your working career,” Petrey says.

Read more from local CPAs on how to plan your retirement savings here.

Copyright 2022 The Business Journal, Youngstown, Ohio.