Avoid lifestyle inflation to maintain financial independence from "summary" of Early Retirement Extreme by Jacob Lund Fisker
To achieve financial independence and early retirement, it is essential to resist the temptation of lifestyle inflation. Lifestyle inflation occurs when an individual increases their spending as their income grows. This gradual increase in spending can lead to a cycle of constantly needing more money to sustain an inflated lifestyle. By avoiding lifestyle inflation, individuals can maintain a frugal and minimalist lifestyle that prioritizes savings and investments over material possessions. This conscious decision to live below one's means allows for greater financial freedom in the long run. It is about being intentional with spending and focusing on necessities rather than indulgences. When individuals succumb to lifestyle inflation, they become trapped in a cycle ...
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