How a 27-year-old with a million-dollar business avoids lifestyle inflation

Williams was making $115,000 as a big data analyst before she left her job in 2022 to run her new social channel full-time. By the end of the year, she was paying herself Nearly $150,000.

Her business took off, and by 2023, she had raised that salary to $200,000. However, after hearing that some brand partners were cutting their budgets, and in an attempt to hire more staff, Williams decided by mid-2023 to reduce her salary to $125,000 per year.

Williams says resisting lifestyle inflation through these salary adjustments has been a challenge, even more so because she spends so much time on social media and gets ads at every moment. “It's all the time, it's constant,” she says. “It's really difficult.”

But the TikTok star says she has two key strategies to prevent lifestyle creep.

When Williams is tempted to buy something that is clearly a desire rather than a necessity, she waits 24 hours before making a purchase decision.

It's a crucial step when you're working or scrolling through Instagram and come across an ad for something tempting, like a modern $60 jacket.

“Every time I told myself to wait for the next day, I completely forgot about it [it]”My life is no different without the jacket, but in that moment, the need for it can convince you that you need it when you don't,” she says.

If she's still thinking about something after the 24-hour waiting period, Williams says she only buys it if she can think of three specific ways she'll use or wear it. This exercise helps her “validate the purchase and make sure it is something special and meaningful” to her and not “a creeping lifestyle influence.”

Then there are the big purchases that stick with her, “because sometimes, you know, I get out of my head and think I could afford a Prada bag.”

In those situations, Williams says she splits the cost of a large purchase based on how many hours she has to work to afford it. “If it's important, if you have to work a whole week to validate a purchase, it gives you a new lens to look at your purchase from,” she says.

“When I think about the amount of work I do and compare it to the result of getting the bag, sometimes they are not equal,” she adds. “So finding a way to compare costs and give you a frame of reference for how much something actually costs compared to your budget and how much you work can give you a glimpse of reality and bring you back down to earth.”

Do you want to be smarter and more successful in your money, work, and life? Subscribe to our new newsletter!

Do you want to get your dream job in 2024? Take CNBC's new online course on how to succeed in your job interview To learn what hiring managers are really looking for, body language techniques, what to say and what not to say, and the best way to talk about pay. Get started today and save 50% with discount code EARLYBIRD.

paying off: The 27-year-old TikToker created a million-dollar business asking people how much money they make