Welcome To Lifestyle Inflation

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  • Lifestyle inflation refers to an increase in spending as a result of an increase in income.
  • You need to spend money on a home to live in, groceries to feed your family, and clothes to wear in your daily life, however, you likely don’t need to spend money on a new home with a swimming pool, dining out at fancy restaurants every week, or luxury brand-name clothes that cost a large percentage of your paycheck. 
  • Lifestyle inflation affects people in the lower, middle, and even upper classes. Even if a person makes $600,000 per year, they can be affected by lifestyle inflation.

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