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Does your spending go every time you get a pay rise?

If it does, you may be caught in the web of Lifestyle Inflation

So what is lifestyle inflation?

When people get a pay rise, I generally see an increase in spending, not an increase in saving.
Why could you survive on an income of say $50,000, yesterday, but when you get a pay rise today you have to spend more?

So by buying more “stuff” every time you get a pay rise is what I call lifestyle inflation.

I see it all the time.  The new car, the bigger house, the more toys, more expensive holidays.

Maybe this quote from Oscar Wilde resonates with you.

“It is difficult to save money when your neighbours keep buying things you can’t afford”.

Think about what your income has done over the last 10 years, and how your spending has changed.  Can you think of where you have suffered from lifestyle inflation?

Well, if you never break the habit of this lifestyle inflation, how do you ever save for your future?
What will you do when you stop working and your income drops?
So next time you get a pay rise, stop the lifestyle inflation and start to save.

Look for my video on The SMarT Savings Plan to help you do this.

Your future self will be very grateful for this.

Do you and your family a favour and start taking steps so you can avoid the poverty trap.

Wayne Wanders

The Wealth Navigator

wayne@thewealthnavigator.com.au

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