How to Avoid Lifestyle Inflation- Avoid the Desire of Spending When You Make More Money

How to Avoid Lifestyle Inflation- Avoid the Desire of Spending When You Make More Money

written by Global Glam July 7, 2017

Lifestyle inflation is a trap many people fall into, even if they don’t expect it or see it coming. It’s natural that someone making 100k per year can be just as broke as the college graduate making 30k per year. The question is how is this possible?

-By Nikki Main

Lifestyle Inflation

Lifestyle Inflation

As that new college graduate, I’m sure we all remember living in the small apartment and eating ramen noodles and spaghettios, trying to make it through the week on the small income we had. Yet once employees get a salary upgrade they often feel the need to upgrade their life as well. Although the apartment they were paying $750 per month for was in a good location, with good neighbors, the individual wants to upgrade to a nicer apartment in a nicer area for maybe $1200 per month. This continues well into starting a family and all the other promotions that will come along.

The trap of lifestyle inflation happens to just about everyone, the key is to be frugal with your spending. Ask yourself before you buy the larger apartment (or home) or the nicer car, “do I really need that?” If the answer is no, you probably don’t need to be spending the extra money.

Start focusing on experiences over things and you will not only find your bank balance increase, but you will find your overall happiness increases drastically. Going on a vacation or signing up for a class can create memories that will have more lasting satisfaction than an inanimate object.

It’s also important to realize that sometimes you should treat yourself, we aren’t saying don’t. It’s important to remember that you work hard for your money and need to feel like there is a reward for all the hard work you put in. The problem lies when this becomes a habit, and even though you start making $1000 more each month, you still aren’t saving. If you get a promotion take $750 of the $1000 and put it in savings and use the rest to spend. You’d be amazed at how quickly the money will begin to stack up.

-N.M.

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6 comments

6 comments

RM July 10, 2017 - 12:02 am

These are great money management skills and tips …

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Gastrotravelogue July 10, 2017 - 2:19 am

Sage advice. It is really hard to save money when you first start working, the temptation is always to spend it and begin saving next month.

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Sahana July 10, 2017 - 3:09 am

Such a small article but so damn meaningful! When I left college I still remember the string of memories I have created at that place and how it will forever last in my hear. I also worked hard but I did chill when I had to! These memories are what all mattered!

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Lynn Woods July 10, 2017 - 5:18 am

Great tips! My husband is a shopaholic. I definitely need to share this with him!

Reply
Sophia July 10, 2017 - 12:26 pm

This is definitely a smart way to go about long-term goals!

Reply
Kaya Kaur July 17, 2017 - 2:47 pm

i need to follow this advice, totally smart!

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