Lifestyle Inflation — Control It Before It Controls You!

Welcome to my LinkedIn newsletter! In each issue of Plan B Success, I'll be sharing my thoughts on personal, career and business growth with your success and life fulfillment in view. Subscribe?here?to stay updated.

Lifestyle inflation is an insidious thing.

It's the increase in spending due to an increase in income.

It sneaks up on you when you’re not paying attention, and before you know it, your life has changed — but in a way that’s not necessarily for the better.

We’ve all been there: You get a raise at work, or maybe win the lottery (hey, it happens!), and suddenly you’re spending more money than ever before on fancy restaurants and expensive toys. Before long, though, things start to feel…empty. That’s because lifestyle inflation isn’t just about buying things; instead, it can be caused by adopting habits that don’t really bring us any joy — like eating takeout every night because we don’t have time to cook healthy meals at home anymore!

Lifestyle inflation is a term used to describe the phenomenon where your lifestyle increases over time, in relation to your income.

It can happen for many reasons: you get married and have children; you move into a bigger house or buy a new car; or maybe you’re just tired of eating spaghetti every night and start eating out more often. Whatever it may be, the fact remains that this increase in spending will eventually lead to financial trouble if it isn’t managed properly.

The bottom line?

Lifestyle inflation creates stress and frustration for its victims because they have less free time than ever before due to all of these extra responsibilities (and expenses).

It’s important to keep your lifestyle in check as you increase your wealth.

If not, it can lead to financial problems and even bankruptcy. There are many ways to manage lifestyle inflation:

• Keep track of how much money you spend on things like food, entertainment, clothing and transportation. This will help identify areas where spending is out of control or unnecessary (e-books instead of hardcovers? Eating out five times per week?)
• Make sure that the things that matter most (like health care) aren’t affected by lifestyle inflation — keep them separate from other expenses so they don’t get cut back when cash gets tight because they’re considered “nonessential” items by some people who haven’t thought through what really matters most in life
• Find ways to save money without sacrificing too much quality in terms of food/lodging etc., such as shopping at discount grocery stores or staying at inexpensive hotels when traveling for work purposes only (not vacation)

Lifestyle inflation can happen quickly, especially if you start earning more money.

This is true even if you’re not trying to spend more money.

Some people think they are immune from this effect because they have set limits on how much they will spend on certain things like groceries or rent. However, these limits may not apply when we’re talking about other areas of life like going out with friends or buying clothing items (even if those items are only slightly out-of-budget).

The first step in managing lifestyle inflation is recognizing that it’s happening.

You need to be aware of the problem before you can solve it, and there are several ways in which lifestyle inflation can show itself:

• Your spending has increased over time without any major life changes (e.g., getting married or having kids)
• Your income has increased over time without any major life changes (e.g., getting a promotion)
• You’re spending more than you earn on an ongoing basis

You need to step back and evaluate whether the things that you’re spending money on actually make you happy — or if they’re just status symbols.

If you’re spending money on things that will add value to your life, then go for it! But if it’s just something that makes other people think better of themselves, but doesn’t really affect your own happiness or quality of life, then maybe reconsider those purchases.

Not everything that makes you happy has to cost money — but sometimes it does!

Take fitness for example. I used to think that the only way to get fit was through expensive gym memberships and personal trainers — but all of those things can be done at home with just a little bit of ingenuity! It’s all about finding ways that work best for your lifestyle — whether that means joining a class or hiring someone part-time, there are plenty of options out there if you’re willing to look beyond traditional methods (and budgets).

The same goes for healthy eating; although it may seem like all healthy food is expensive nowadays, there are plenty of ways around this problem as well! Grocery stores often offer discounted produce near its expiration date which works perfectly fine for recipes like soups or smoothies where texture isn’t important anyway — so take advantage!

Make sure you’re spending on experiences rather than material things.

Experiences can be more rewarding than material things, and if you’re trying to reduce your lifestyle inflation, this is a good way to do it. Examples of experiences that may be more rewarding include:

• Going out for dinner with friends or family (instead of buying a new TV)
• Taking a vacation (instead of buying another pair of shoes)

If you’re investing for growth, don’t forget about yourself!

It’s easy to get caught up in the hustle and bustle of life, but it’s important to remember that you are not your money. You are a person with needs and wants, just like everyone else.

Don’t forget about yourself! Don’t be afraid of spending money on yourself. Investing in yourself is an investment in your future. You need to feel healthy, happy and content in order for your investments (whether they be financial or otherwise) to succeed over time.

There are ways to manage lifestyle inflation and keep up with your new spending habits — long term happiness should be the goal!

You may be thinking that there’s no way to avoid lifestyle inflation. Not true!

• Make sure you have a budget. It’s important to know how much money is coming in, where it’s going, and what your goals are for the future so that when unexpected expenses come along (like a car repair), they don’t throw off your whole financial plan.
• Don’t spend more than you earn — this is an old adage but one worth repeating! If all of this talk about budgeting makes you nervous or stressed out, consider finding someone who will help walk through the process with you — whether it be an accountant or friend who has experience managing finances themselves; even just having someone else look over what goes into each paycheck can make all the difference when trying to not only stay within budget but also feel like everything is under control.
• Do not go into debt — loans are tempting because they allow us access now rather than later but if possible, try avoiding taking out any type of loans until after college graduation or other major life events (like buying a house). This way, there won’t be any surprises down the road regarding paying back debt such as credit card bills, etc.…

It’s a myth that you can’t control your finances, but it does require some effort on your part.?

There are a lot of different ways to go about budgeting and saving but the most important thing is that you do it. There will be many times when you feel like giving up or not being able to stay within your budget but if you keep with it, even just a little bit at a time, then before long you will have built up enough savings so that money doesn’t have as much control over your life.

Thank you for reading! I'd love to know your thoughts in the comments below. For more insights from my experiences as an executive and an entrepreneur in how we can harness the power of community to change our world, and to find success and fulfillment, be sure to?subscribe?to Plan B Success Newsletter.

For more such interesting reads,?SUBSCRIBE?to?Plan B Success Newsletter?& share with a friend!

Want to?SUPERCHARGE?your personal or business brand with your own podcast,?GO HERE?=>?Grow & Monetize Your Podcast

And, for listening to more inspiring content,?SUBSCRIBE?to?Plan B Success podcast?on your fav platform, and to watch,?SUBSCRIBE?on?YouTube!