Lifestyle inflation

💡 Lifestyle inflation (aka lifestyle creep) refers to the situation many people find themselves in where their expenses increase every time their income increases. You get a raise & you buy a new car to celebrate. Despite your increased income, your saving rate stays the same, thanks to that new car payment. Lifestyle inflation is generally considered a Bad Thing™ in the FIRE community. Despite the negative connotation, I believe that lifestyle inflation is okay in certain situations.

Inflating your lifestyle is okay every now and then. When extreme, lifestyle inflation can hold you back from reaching your true financial goals.

There are many ways you can upgrade your lifestyle and enjoy the fruits of your labor. But make sure you avoid the endless cycle of lifestyle inflation!

Avoiding Lifestyle Inflation

The cost of buying wants not needs can add up extremely quickly, and that's exactly how lifestyle inflation gets us, one decision at a time.

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We learned more about what inflation actually is and isn’t. What is Inflation? It’s a general increase in prices and fall in the purchasing value of money. Peter described it as the literal ‘expansion’, like inflating a balloon. Over the past 10 years, the average rate of inflation in the United States was 1.8%. Inflation […]

In the medical field, preventing a disease is preferable to trying to treat or reverse one. The same can be said of lifestyle inflation. Here's how to stop it before it starts.

Cost of Living Crisis - Surprise! Inflation Up Again - Daily Squib

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