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Avoid lifestyle inflation to maintain financial progress from "summary" of Set for Life by Scott Trench
One of the biggest obstacles to achieving financial independence is the tendency to increase our spending as our income grows. This phenomenon, known as lifestyle inflation, can derail even the best-laid plans for building wealth and achieving long-term financial security. As our earnings increase, so too can our desires for nicer things, more extravagant experiences, and a generally more comfortable lifestyle. While it's natural to want to enjoy the fruits of our labor, succumbing to lifestyle inflation can have serious consequences for our financial future. By constantly upgrading our lifestyle to match our increasing income, we create a vicious cycle that keeps us tethered to our jobs and prevents us from reaching our financial goals. Each raise or windfall becomes an excuse to spend more, rather than an opportunity to save and invest for the future. This pattern of living paycheck to paycheck, no matter how large those paychecks may be, can lead to a lifetime of financial insecurity and missed opportunities for true wea...
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