Lon and Gretta married older … he was 42, she just 39.  Before the wedding, both owned their own homes and enjoyed fairly comfortable, relatively debt-free lifestyles.  With a $60K annual income, Gretta earned a bit more than Lon.  After the nuptials, they combined incomes and sold their homes to buy a bigger, more expensive house while maintaining their individual lifestyles … Gretta spent her Saturdays shopping at the mall, Lon worked on race cars, constantly buying baubles, doohickeys and trinkets for his rides. 

Then, when Gretta was 41, they got pregnant.  And then Lon lost his job.  Found another one, but at a lower salary.  They were overjoyed at the baby, but … Gretta still spent her Saturdays at the mall, and Lon kept modifying his race cars, with all the costs for the new baby. 

In just a few years, Gretta and Lon owed $30K in credit (“debt”) cards.

The problem?  Gretta and Lon – as new parents – still lived as DINKs, and failed to adjust their spending for the radically changed circumstances.  Gretta and Lon previously had been able to charge their lifestyles and pay the bill off in full every month.  Now, however, their incomes remained somewhat the same, with expenses hugely increased. 

Considered a form of “lifestyle creep” … when expenses increase but TTD income does not (or decreases) and discretionary spending remains largely the same, debt is often the tactic used to fill the gap … and there will be gap. 

Again, do not commit future income with current spending,
and when life changes be prepared to adapt / adjust / align current income with current responsibilities.