Money mindset: comparison, social media and lifestyle creep

What you see online is a highlight reel, not a bank statement. Learning to spot comparison spending and lifestyle creep now will protect your money for years.

The comparison trap

• Social media shows other people's purchases, trips and milestones, but not their debts, help from family or what they gave up.
• In a New America roundtable, young adults said social media was 'creating expectations among friends' and made spending and financial milestones more visible.
• Ask before buying: 'Would I still want this if nobody could see it?'
• Mute or unfollow accounts that regularly make you feel you need to buy something.

Finfluencers and money advice online

• New America cites research suggesting as many as 79 per cent of young adults turn to social media for information on investing, budgeting and credit.
• It also cites FINRA Foundation research that social media users and finfluencer followers report higher rates of fraud exposure and financial loss.
• Be wary of anyone who sounds very confident but shows no real knowledge or experience, or who pushes you to act quickly.
• Promises of fast, easy money are a warning sign. Check claims with trusted, official sources.

Lifestyle creep

• RBC defines lifestyle creep as 'the gradual increase in spending that can happen as income rises'.
• Typical examples: upgrading to a newer phone, adding streaming subscriptions and ordering takeaway more often.
• Warning signs: earning more but saving less, using credit for everyday costs, or feeling stuck despite a higher income.
• RBC mentions a common guideline of directing at least 50 per cent of any pay rise to savings or debt before increasing spending.
• Example: your job pay rises from AED 1,500 to AED 2,000 a month. Saving at least half the AED 500 increase means at least AED 250 more saved each month.

Buy now, pay later and easy credit

• Buy now, pay later (BNPL) lets you split a purchase into instalments. It can feel like free money, but it is a form of borrowing.
• New York City's consumer protection department warns that some BNPL loans charge more for late or missed payments, and that it is easy to spend more than you intended.
• Juggling several BNPL plans with different payment dates is hard to manage, and late payments can harm your credit record.
• Rule of thumb: if you cannot afford it today from your budget, splitting it into four payments does not make it affordable.

Habits for a healthy money mindset

• Pay yourself first, and treat savings as a fixed bill.
• Review your subscriptions: would you sign up for each one today if you did not already have it?
• Do a basic monthly review of income against spending to spot slow changes.
• Measure progress against your own goals, not other people's posts.
• Celebrate wins that do not involve spending: a savings milestone, a skill learned, a debt avoided.