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Be mindful of lifestyle inflation to avoid overspending from "summary" of Broke Millennial by Erin Lowry
When you finally start making more money, it can feel like you hit the jackpot. Suddenly, you have extra cash to throw around, and it's tempting to upgrade your lifestyle. You might decide it's time to move into a swankier apartment, buy a brand-new car, or start dining out at fancy restaurants more often. After all, you're making more money now, so why not enjoy it? This is where lifestyle inflation comes in. It's when you increase your spending as your income goes up. If you're not careful, lifestyle inflation can quickly lead to overspending. Before you know it, you're living paycheck to paycheck again, wondering where all your money went. To avoid falling into this trap, you need to be mindful of lifestyle inflation. This means being aware of your spending habits and making intentional choices about where your money goes. Instead of automatically upgrading your lifestyle every time you get a raise, take a step back and think about your financial goals. Do you want to pay off debt, save for a house, or start investing for the future?- You can avoid overspending and build a more secure financial future. It's okay to treat yourself once in a while, but make sure it aligns with your overall financial plan. Remember, just because you have more money coming in doesn't mean you have to spend it all. Being mindful of lifestyle inflation is key to staying on track and avoiding financial pitfalls.
