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$89,354 net worth (Age 35)
“Lifestyle Creep” a 35-year-old senior PR and communications manager in Brooklyn earning $112,128 annually, with a joint income of approximately $220,000 with her freelance partner. Her accumulated net worth (83rd percentile for her age) consists of $74,513 in her 401(k), $14,841 in a Roth IRA (funded by her parents at $7,000 annually), and $5,015 in credit card debt. She splits most expenses 50/50 with her partner and pays $1,660 for her half of a one-bedroom apartment in Brooklyn. Growing up with immigrant parents who were extremely frugal, she learned to be cautious with money but now finds herself caught between saving and spending.
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“I admit I do also have a bit of a shopping problem (especially working in fashion!) which has accumulated a bit of credit card debt... I didn’t realize how much I would spend if I ate out all weekend, even with breakfast at home! I think I will be more conscious that this can’t happen every weekend, as I’m trying very hard to pay down my debt.”
TAKE-AWAY: the danger of lifestyle creep even with high income. Despite earning well above the national average and having parental support for retirement savings, poor spending habits on discretionary items like dining out and shopping can quickly accumulate debt that undermines wealth-building efforts.
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