From Kendall Bauer
Dear Investor,
For many young professionals, there’s a moment that feels like a turning point. The first real paycheck hits. The job title feels legitimate. For the first time, you have the income to upgrade your life in ways that used to feel out of reach.
And naturally, you do.
A nicer apartment. Better furniture. More nights out. Convenience over cost. None of it feels excessive. In fact, it feels earned.
In a way, it mirrors what many of us grew up watching.
Think about shows like “Friends,” “How I Met Your Mother” or “New Girl.” Great apartments, great locations, a lifestyle that always seemed just within reach. At the time, it felt normal. Only later do you realize those lifestyles didn’t quite line up with the reality of starting out in your 20s or 30s.
That’s where lifestyle creep begins.
It doesn’t always show up as reckless spending or bad decisions. It shows up as gradual upgrades that feel reasonable in the moment. Each step makes sense on its own. Together, they quietly reset your baseline.
It’s worth noting that you don’t need to sacrifice the freedom of your 20s to live on peanut butter sandwiches or drive a car that’s held together with duct tape — trust me, I’ve been there.
But it’s important to approach upgrades with moderation. Avoid trying to keep up with others around you. Small, intentional choices now can pay off down the road. Prioritizing retirement savings and starting to build your investment portfolio early will let you enjoy better experiences and bigger purchases later in life. It’s always about balance.
Think of it like spring cleaning, something many of us do each April. As clutter builds over time, we rarely notice it until we take a step back and sort through it all. Your finances are the same. Use moments like your first pay raise, a bonus or even a milestone birthday as opportunities to check in on your spending and budgeting habits.
If you don’t have a budget, now is a great time to build one. There are plenty of tools available that don’t cost a dime. A budget isn’t intended to feel like a financial prison. Consider it a framework that helps you decide where you want to spend, where you can save, and what you want to prioritize from a retirement savings and investment standpoint.
Take a moment to reflect: What’s one upgrade you can delay today that will open up more choices tomorrow?
Remember how time and consistency build momentum. Those same principles help you stay ahead of lifestyle creep. The habits you form now — the choices you make when your income first begins to grow — compound over time, just like the investments we’ve discussed in previous letters.
Ultimately, lifestyle creep doesn’t have to slow your progress. When you balance enjoying today with building for tomorrow, you create flexibility and freedom that lasts well beyond your first real paycheck.
Until next time,
Kendall
Kendall Bauer is vice president and investment advisor at Landaas & Company, LLC.