Congrats—you got a nice salary bump and a better-paying job. Now, you have the extra funds to revamp your home or invest in a new wardrobe. Add another subscription service. Treat yourself to some fine dining events. You deserve these nice little luxuries and plus, money is meant to be spent, right? Unfortunately, this line of thinking can make you fall for the dreaded “lifestyle creep” trap, aka where you spend frivolously—and without intention—to upgrade your lifestyle. Everyone deserves the fine things in life and if you can afford it, go ahead! But it’s easy to get carried away binge shopping on Amazon and Target and risking your financial health. That said, there are ways to avoid this sneaky trap—and we lay them all for you below. How Your Money Affects Your Mental Health Signs and Effects of Lifestyle Creep For many, a pay bump is a huge financial relief. But it can also lead to the slippery slope of overspending also known as lifestyle inflation. “Lifestyle creep happens when people start spending more as their income rises,” explains financial expert Heidi MacVittie, MSF, the founder of Moola Masters. “Instead of saving or investing the extra income, people ‘upgrade’ their lifestyle by buying non-essential items and luxuries.” She adds that this can lead to stations where people, despite making more money, have little to no savings, living paycheck to paycheck, and feel the burden of financial stress. Lifestyle creep is a hidden financial trap that will keep you from reaching many financial goals, regardless of your income. — ANDREA WOROCH, A CONSUMER FINANCE EXPERT Andrea Woroch, a consumer finance and budgeting expert, says lifestyle creep could look like swapping out your otherwise trusty car for a shiny new one, buying a bigger house (with bigger bills), upgrading your gadgets to the latest devices, or purchasing new clothing when your wardrobe is perfectly fine. “Lifestyle creep is a hidden financial trap that will keep you from reaching many financial goals regardless of your income,” Woroch warns. “After all, it’s not how much you make but how you spend that will impact your financial situation.” Signs of Lifestyle Creep Living paycheck to paycheck despite raises Feeling like you don’t know where your money goes every month Dwindling emergency savings Falling short on your retirement contributions Relying on credit cards to get through the week or month Financing unnecessary expenses, like lavish vacations, new clothing, or nice dinners Rising debt with no repayment plan Borrowing money from others Skipping bills to cover discretionary spending Uptick in overdraft fees and penalties Inability to cover emergency expenses Prioritizing wants over needs consistently Feeling pressure to keep up with others Making impulse vs. intentional purchases Justifying expensive purchases as “deserved” Consistently opting for luxury over practicality How Important is Financial Compatibility in a Relationship? Causes of Lifestyle Creep There are many reasons why people fall into the lifestyle creep trap from this need to keep up with the Joneses to a lack of impulse control. Here are the most common causes. Pressure to Keep Up We often want what others have, or we want better than what they have. “One of the biggest areas to blame is the constant comparison and pressure people feel to live like others they see online and through social media,” notes Michelle Winterfield, a couples finance expert and founder of the Tandem app. “A big part of partaking in any experience now is thinking about the Instagram post that will follow.” One of the biggest areas to blame is the constant comparison and pressure people feel to live like others they see online and through social media. — MICHELLE WINTERFIELD, COUPLES FINANCE EXPERT A 2021 study even found a direct relationship between our social media use and depression and discovered that viewing others’ highlight reels can often make us feel bad about ourselves and our own accomplishments.1 But this pressure isn’t limited to social media. Before the digital boom, people compared themselves to neighbors, friends, and family. Social media only exacerbated this problem and many now compare themselves to millions of strangers on the Internet instead of their inner circle. Hence, why people feel compelled to “over-purchase on things and experiences they may not have if these platforms weren’t so widely used,” says Winterfield. Undisciplined Budgeting The more you make, the less likely you feel a budget or examination of your finances is needed. After all, that $5 expense seems negligible, compared to when cash was tighter. “Consumers often pay close to how much they spend when they are on a limited income, but loosen their purse strings when they get a bigger paycheck and have more money in the bank,” Worch says. “This leads to giving in to more impulse purchases or splurging more often than they may have before.” Cue overspending. A compulsive shopping addiction can also exacerbate lifestyle creep. This is defined by difficulty resisting purchases, preoccupation with shopping, and experiencing financial difficulties as a result of uncontrolled spending. Poor Financial Literacy Another reason why lifestyle creep occurs is because of poor—or the lack of—financial education. “Those who don’t understand basic financial principles and how to budget, save, or invest can also end up blowing their hard-earned dollars on wasteful purchases in many situations,” Woroch says. The more you understand about finances, the more likely you are to make savvy decisions to benefit your future self. A 2022 study found that those with increased financial literacy make wiser decisions that help secure their future financial needs.2 Why It’s Harmful to Compare Yourself to Others 8 Ways to Avoid and Manage Lifestyle Creep So what’s the secret to avoiding lifestyle creep? Follow these 8 rules and you’ll be well on your way to having more control over your financial decisions. Set Clear Financial Goals: Establish short-term and long-term financial goals. MacVittie says this helps direct extra income towards meaningful objectives like retirement savings, buying a home, or funding a child’s education. Increase Savings with Each Raise: When you receive a salary increase, allocate a portion of it to your savings or investment accounts before adjusting your lifestyle. This way, you build wealth and financial security without falling into the trap of spending more just because you earn more. Automate Your Savings: Prioritize saving and automate how much goes into your savings and retirement accounts each month. “By paying yourself first, you ensure that a portion of your income is saved before you have a chance to spend it,” MacVittie says. Plus, the easier it is to save, the more likely you are to do it. Create a Budget: Establish a simple budget that reflects your income, expenses, savings goals, and discretionary spending. Adhering to this budget helps you live within your means, preventing overspending and the gradual increase in lifestyle costs. Identify Spending Triggers: This varies for everyone, but if you can identify your weak points when it comes to spending, you’ve already won half the battle. Maybe it’s FOMO when others invite you to a luxe dinner (solution: figure out ways to politely decline or attend less frequently), or maybe it’s scrolling through social media (solution: reduce scroll time, hide ads, or unfollow/hide certain people). Use Your Bonuses Wisely: “Any time you get a promotion or new job that pays more, put the difference in salary directly towards your retirement fund, college fund, or separate savings so it’s out of sight and out of mind,” Woroch advises. Ask Yourself if It’s Necessary: Winterfield says you must truly understand the “why” behind your purchases to tackle unnecessary spending. “It’s perfectly normal to spend money on things that [are essential or] make you happy, but you need to be aware of the opportunity cost of this discretionary purchase and why you’re really doing it to validate if it’s worth it.” Revisit Finances Quarterly: Regularly assess your short-term and long-term financial goals. Tracking your progress keeps you motivated and focused on achieving them. Adjust your spending and saving habits as needed to stay on track, ensuring that lifestyle creep doesn’t derail your financial plans. Avoiding lifestyle creep is an ongoing battle that requires some self-awareness and discipline. By regularly reviewing and adjusting your financial plan, MacVittie says you can help make sure your spending aligns with your values and long-term goals.

If you’re not happy with your job, it can bleed over into other areas of your life. Job dissatisfaction is stressful, particularly considering that you’ll likely spend about a third of your life working. If you are grappling with feelings of unhappiness or unfulfillment with your job, you might be contemplating whether it’s time to call it quits and move on.

There may be plenty of clues, but what you’re really looking for is a clear sign that says it’s time to say goodbye to your current job. Even when you’re certain it’s the right move, deciding to quit your job can be daunting. You might be concerned about the professional implications, the impact on your future opportunities, and the potential financial consequences of leaving a stable job without a clear next step.

The good news is that you don’t have to wait for that final straw that makes you finally call it quits. Paying attention to some of these five signs that you should leave your job immediately—if you can— will help you feel better prepared to make that choice.

Sign 1: Lack of Growth Opportunities

Career advancement, learning, and growth opportunities are very important for many U.S. workers. According to one survey conducted by the American Psychological Association, 91% of respondents suggested that these opportunities were important to them.1

In fact, according to a survey by one HR research firm, a lack of career advancement opportunities is one of the key reasons people often leave their jobs.2

“Most of us spend many hours a day at our job and often find a sense of purpose from our professions,” notes Kristin Papa, LCSW, a psychotherapist and founder of Living Openhearted Therapy and Wellness. “Feeling stuck in a job without room to grow can leave us feeling stagnant and questioning our purpose, which can negatively impact our well-being and can lead to lack of motivation, apathy, or resignation.”

If your current job doesn’t offer a chance to learn more, hone your skills, and move up the career ladder, it’s not surprising that you might feel more than a little bit dissatisfied.

If your job seems like a dead end that won’t lead to better opportunities or personal growth, it’s a good indicator that you might want to consider leaving. A role that never changes, doesn’t let you branch out, and doesn’t challenge you is a surefire path to stagnation and dissatisfaction.

Stagnation is a particular problem for middle-age adults, notes Renée Zavislak, MS, MA, LMFT, an integrative therapist. “The psychosocial stage we reach in middle adulthood is called ‘Generativity vs. Stagnation.

The primary developmental task for adults in this stage is to develop a sense of purpose, the sense that we are leaving something behind,” she explains. “Without this, we feel stagnant. Intellectual atrophy is definitely the enemy of generativity, so those jobs that offer no growth possibilities are developmentally dangerous.”

So, how can you tell if your job isn’t helping you grow? Key signs include not developing new skills, never taking on new challenges, and never being given opportunities to advance within the company.

It is important to note that growth doesn’t necessarily mean upward mobility. It’s helpful to define what professional growth means for us personally, since growth opportunities can also be learning a new skill, creating a new program, or opportunities to connect with other colleagues.

— KRISTIN PAPA, LCSW

Over time, a lack of growth opportunities hampers your professional development and leaves you feeling undervalued, unfulfilled, and disengaged.

Sign 2: Ethical Complications

It’s time to walk away if your employer asks you to compromise your personal values or engage in unethical behavior.

“Ethical complications can be a huge contributor to job dissatisfaction in the workplace. If you are witnessing unethical practices at the job, feeling like you are not in alignment with the ethical beliefs of the employer, or even notice unethical practices among co-workers,” says Jenny Flora Wells, MSW, LSW, ACSW, a holistic therapist based in California. “These experiences lead to an increase in stress and anxiety that are difficult to manage on top of daily job-related duties.”

In some cases, you might be able to set clear boundaries that make it clear that you won’t compromise your professional standards and risk your reputation—but oftentimes, you may find that it just isn’t worth working for a boss, manager, or company that expects you to do their dirty work for them.

Examples of ethical complications you might encounter in the workplace include:

  • Being asked to engage in behaviors that compromise your values, such as turning a blind eye to shady practices
  • Requests that run the risk of tarnishing your professional reputation—or that make you look bad by association
  • Ethical dilemmas that lead to feelings of guilt, anxiety, stress, and other types of emotional turmoil
  • Legal issues that involve breaking the rules, engaging in illegal activities, or even outright fraud

Zavislak notes that ethical complications in the workplace can pose problems in the spiritual quadrant of a person’s life. She has seen such dilemmas create serious issues in her clients’ lives, with some experiencing complications such as depression, insomnia, gastrointestinal problems, and other physical symptoms.

The bottom line is that you don’t want to stay in a place that expects you to ignore your own values, risk your professional reputation, or put yourself in the legal line of fire. If you’re losing sleep about the ethical complications you see at work, it’s time to take a stand and say goodbye.

It’s important to remember that ethical complications can have long-lasting repercussions. Leaving now can protect your future employment prospects.

Sign 3: Mental and Emotional Well-Being

Everyone faces their own mental and emotional challenges, but if your job is taking a serious toll on your psychological well-being, then it’s a strong indicator that it’s time to move on. Prolonged stress, anxiety, and unhappiness at work can have serious consequences, including an increased risk for health problems and burnout.

Some jobs can be admittedly stressful for various reasons.3 Feeling constantly on edge, being filled with dread before heading to work, and coming home utterly exhausted each night are not just ‘part of the job.’ It’s a sign that something needs to change.

Zavislak suggests that people consider how their job affects them in four key developmental quadrants: physical, emotional, intellectual, and spiritual. If one or more of these areas are being adversely affected, it may be time to move on.

She also notes that being able to consider leaving a job is, in and of itself, an immense privilege.

“For many people, financial hardship renders this matter moot, no matter how unsatisfying the job,” she says. “So if you are lucky enough to have the option to change your gig, consider first how your current employment affects your four developmental quadrants.”

Factors that can lead to emotional and mental health problems include excessive workloads, poor work-life balance, unrealistic expectations, and a toxic workplace. All of this can take a toll on your ability to function well when you’re on the job.

You might feel less engaged, and your self-esteem may suffer. Over time, it can even start to negatively impact your physical health, leading to problems like poor sleep, headaches, digestive problems, and a weakened immune system.4

A healthy work environment should support your mental well-being, not deplete it. Prioritize your own well-being and be willing to walk away from a job that is asking for more than you should be willing to give.

Sign 4: Lack of Interest and Motivation

You don’t always need some big, compelling reason to quit your job. Sometimes, it can be as simple as a lack of interest and motivation. The reality is that if you are finding it harder and harder to muster up even a single ounce of interest in your job, it’s a good sign that you need to take a serious look at why you’re still holding on.

If your job bores you to tears, that’s a perfectly good reason to consider leaving it for something more interesting, challenging, and motivating.

“While boredom and lack of motivation can be signs of burnout and, in that case, maybe a call for a vacation rather than a resignation, chronic feelings of boredom and emptiness are absolutely valid reasons for leaving a job,” Zavislak says.

Remember when you first started your job, and you had that initial spark of excitement and interest? It’s normal for your interest and passion to ebb and occasionally wane. But it’s a major red flag if each day feels like an endless, monotonous grind.

While it might not seem like a huge deal, losing interest in your work can affect your attitude, morale, and productivity. You might find yourself putting in less effort, or you might even start looking for reasons to avoid work tasks that don’t interest you.

“Experiencing boredom at work, characterized by disinterest and detachment from tasks, can lead to a lack of satisfaction, heightened anxiety, and a desire for engaging opportunities,” says Jason Walker, PsyD, PhD, program director and associate professor of industrial-organizational and applied psychology at Adler University.

Over time, this loss of interest can leave you drained, disengaged, and stuck in a rut. It can also have a ripple effect on other areas of your life. You might start to feel aimless, unfulfilled, and without a sense of purpose. It can even have a negative impact on your health, lowering life satisfaction and contributing to symptoms of depression and anxiety.5

We spend more waking hours at our jobs than we do elsewhere; to spend these hours bored is tragic, frankly.

— RENÉE ZAVISLAK, MS, MA, LMFT

While there might be ways to bring back that spark (such as switching up your routine, asking for a promotion, or taking on more challenging projects), sometimes the best solution is to move on to something different that helps you grow both personally and professionally.

Sign 5: Toxic Work Environment

A toxic work environment is also a perfectly good reason to say, “I quit.” If heading to the office has started to feel like heading into battle, that’s a good sign that there are some seriously dysfunctional dynamics going on in your workplace.

“Employees who feel undervalued and unsupported or encounter behaviors like bullying or discrimination can have negative impacts on their well-being and job satisfaction,” Walker explains. He also points to research on some of the factors that contribute to a toxic work environment, which include high stress levels, dissatisfaction with compensation, burnout, and lack of opportunities for advancement.6

Some other signs of a toxic workplace include:

  • Dreading going into the office because of the constant negativity
  • Worrying about backstabbing colleagues or a boss who tears you down every chance they get
  • Unrealistic demands that don’t give you the time and space you need to take care of your own needs
  • Lack of trust and respect to the point that it seems like you’re always looking over your shoulder to be on the lookout for gossip or outright sabotage

Zavislak suggests that so many of us are bored, stressed out, and drained from our jobs, we tend to accept this as normal. That makes it hard to know exactly where to draw the line.

She suggests asking yourself if your job is interfering with your ability to function in three key areas: your relationships, your physical health, and your emotional health.

“If your job has a negative impact on your relationships, your emotional health, and your physical health, it is definitely time to quit.”

If your workplace feels more like the setting for a reality tv series than a professional, supportive environment, it’s OK to walk away. Your health and happiness are vital, and you deserve to be in a place where you can do a lot more than just survive the next battle.

Financial Considerations

Quitting your job can be liberating, especially when you’ve been dealing with some of the issues we’ve discussed. But let’s face it—money is often the deciding factor. Ideally, you’ll have enough in your savings that you’ll feel comfortable walking away from your job without having to worry about the immediate future.

Try to have at least three to six months of living expenses saved. This can give you the cushion you need to feel okay about leaving your job without having to stress out about bills piling up while you search for a new job.

Some financial considerations to think about before you quit your job:

  • Make a list of all your expenses, including your rent/mortgage, groceries, utilities, credit card payments, and other debt repayments.
  • List any non-essential expenses that you can cut back on as you make the transition.
  • Consider what you’ll do about health insurance while you search for a new job; you may qualify for a plan on the insurance marketplace or be able to stay on your current plan through COBRA.
  • Update your resume before you quit—and stay in touch with contacts who can serve as good references.

Quitting your job can be a big (and sometimes scary) decision, but being prepared for the change can help make the change easier and less stressful.

Takeaways

Quitting your job is rarely an easy decision, but sometimes it’s the right choice if you are in a situation that is triggering red flags that threaten your health, growth, well-being, and future. Common signs indicating it’s time to take the leap include a lack of growth opportunities, a toxic work environment, dwindling interest, or ethical problems. Of course, you always need to consider the financial implications of leaving your job, so it pays to be prepared and plan ahead if you think it’s a step you’ll need to take.

We spend so much of our lives at work, so it’s important to remember that your job should be a source of satisfaction and not dread. If your current job isn’t a positive force in your life or creates significant stress, it’s important to trust your gut and know when to move on.

If this seems too difficult or challenging to handle on your own, you may consider speaking to a mental health professional or career coach to assist you in the process. They can help you decide what next steps make the most sense for you, and how best to work toward them.

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