Expensive lifestyles are not financially sustainable. More often than not, living this kind of life may force you to take out a loan from a money lender more often. If your debts accumulate, they will be much harder to repay, and you will find yourself in big financial trouble.

It’s a good idea to examine your lifestyle choices and how they affect your finances. Here are four factors to watch out for.

Instant gratification

This is the compulsion to get what you want right away. Let’s say you find that a major phone manufacturer has released its latest phone model. The moment it’s released, you feel that you just need to have it immediately – even if you cannot afford it.

With that, you may look into borrowing money to get that latest phone. Even if it’s not something you need, you get into debt for it. 

The solution is delayed gratification. There is value in waiting to get something you want, especially if it’s an expensive thing. Wait until you have saved enough money to afford it, and the purchase will be even more satisfying.

Diet and exercise

Your choices of food and physical activity influence your health by a lot. Unhealthy food choices and a sedentary lifestyle can lead to major illnesses later in life. Some health conditions can even hit you sooner than you think.

Any major hospitalisation can set you back financially. If you don’t have an emergency fund, medical expenses alone may drain your bank account. In turn, you may be forced to take out loans to cover all the healthcare expenses. This can easily accumulate to several thousands of dollars.

With that, choose to eat healthy and live actively. This way, you will improve your overall health. In turn, you can worry less about medical expenses.

Tobacco and alcohol use

If you have a habit of smoking, drinking, or both, you risk developing several kinds of serious diseases. These include respiratory illnesses, heart attacks, and cancer. Addiction is also a danger, and if you become addicted to tobacco or alcohol, your health is at even greater risk.

The costs of healthcare can easily accumulate, not to mention the cost of rehab if needed. These expenses may also force you to take out large loans. And once you have recovered, repaying your loans will become your next burden.

The best thing to do – for both your health and your finances – is to abstain from these substances altogether. You can always have a good time without them.

Lifestyle inflation

As you advance in your career, you will most likely receive higher salaries. With more money coming in each month, you may be tempted to live the high life. Things you cannot afford before become easier to come by. Perhaps you even want to impress your friends by acquiring expensive things.

This is lifestyle inflation – the tendency to live more expensively the more you earn. The harder part is maintaining this lifestyle. The more you want to keep the high life, the more you will tend to borrow money. Soon enough, the debts may balloon, and you will find yourself struggling to pay them back.

Instead, continue to live a modest life even as your income increases. Focus on saving and investing your extra money so you can build wealth. Buying new stuff and treating yourself is all right as long as your purchasing decisions are within your budget. 

Conclusion

Your lifestyle has a huge influence on your borrowing habits. If you have an unhealthy and lavish lifestyle, this will easily drain your finances. In turn, you will tend to rely on loans more often. But if your lifestyle is healthy, modest, and thrifty, you will not rack up debt.