Lifestyle inflation, also known as lifestyle creep, is a phenomenon that occurs when an individual’s expenses increase in proportion to their income. This can lead to a cycle of spending more and more money on luxury items and experiences, while savings and investments are neglected.
Find more information on lifestyle inflation and how to avoid it on the following page.
Lifestyle inflation can be a trap that many people fall into, but it doesn’t have to be that way. By understanding the concept of lifestyle inflation and being mindful of your spending habits, you can avoid falling victim to it. Create a budget, save and invest, and focus on your own financial goals to take control of your financial future. Remember, the power of compounding can help you grow your wealth over time, and you can use a COMPOUND INTEREST CALCULATOR WITH MONTHLY CONTRIBUTION (COMPOUNDED YEARLY) to see the potential growth of your investment.