Getting a raise is a great way to reach your financial dreams It can help you pay off debt invest or save for retirement But more money can also lead to spending more Find out how to dodge lifestyle inflation and build wealth for the long haul Learn to manage your spending and grow your wealth Avoid Lifestyle Inflation Secure Your Future Key Takeaways Understand the causes of lifestyle creep and the Keeping Up with the Joneses mentality Identify warning signs of lifestyle inflation to avoid overspending Create a budget and stick to it to take control of your finances Set clear financial goals and prioritize saving to secure your future Find balance by treating yourself in moderation and automating savings What is Lifestyle Inflation and Why Does it Happen Lifestyle inflation or lifestyle creep is when spending goes up as income does When people make more money they often spend more too This can lead to less money left over even with a higher income This happens because of a desire to keep up with the spending habits of those around them It's also because of feeling entitled to enjoy the fruits of one's labor Understanding the Causes of Lifestyle Creep Lifestyle inflation comes from different places It can start with comparing oneself to others like seeing colleagues' fancy lives on social media This leads to a conspicuous consumption mindset Credit card debt and risky loans like balloon payment mortgages or adjustable-rate mortgages are signs of lifestyle inflation too... Login to read full