Personal Finance

Spend less than you earn, invest the rest

Novice

Mastery0%

Novice

Note. Education, not financial advice. Tax rules, regulations and product specifics change, for real money decisions, talk to a SEBI-registered advisor whose incentives don't depend on selling you a product.

Concept 09 of 19

settled

Lifestyle inflation

Raises do not make you wealthier if your costs rise the same week.

Definition

Lifestyle inflation is the silent creep where spending rises in lockstep with income, so a bigger salary leaves you with the same savings rate as before.

Step 1

Predict first

In one or two sentences, what do you think this concept means? Wrong is fine; the small struggle is what makes the answer stick.