Avoid lifestyle inflation as income rises from "summary" of Let's Talk Money by Monika Halan
As we progress in our careers, our incomes tend to increase. With this rise in income comes the temptation to upgrade our lifestyles - a bigger house, a fancier car, more luxurious vacations. This phenomenon is known as lifestyle inflation. It is a natural tendency to spend more as we earn more, but it can have negative consequences for our financial well-being in the long run. Lifestyle inflation can lead to a situation where we are constantly living paycheck to paycheck, despite earning more money. This means that there is little to no savings or investments being made for the future. As our expenses increase, our ability to save and invest decreases, leaving us vulnerable to financial emergencies or re...
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