Lifestyle inflation is defined as “an increase in individual’s spending when an individual's income goes up”. If you are in your thirties or above, there is a chance that you can relate to this more. When I first got my job my salary was Rs.16000 - my expenditure included rent and electricity (shared with two other guys), dinner (not fancy) and internet. Now, 15 years later - I pay for OTT, rent and utilities, car fuel, kid’s school fees, cook… etc. In your case, maybe today, 16000 doesn’t even cover your rent. This is what lifestyle inflation looks like. As my salary grew, my expenses also grew by choice (not by chance). If you are not careful about this increasing expense, it could lead to problems in the long term.
Lifestyle inflation
Lifestyle inflation
Lifestyle inflation
Lifestyle inflation is defined as “an increase in individual’s spending when an individual's income goes up”. If you are in your thirties or above, there is a chance that you can relate to this more. When I first got my job my salary was Rs.16000 - my expenditure included rent and electricity (shared with two other guys), dinner (not fancy) and internet. Now, 15 years later - I pay for OTT, rent and utilities, car fuel, kid’s school fees, cook… etc. In your case, maybe today, 16000 doesn’t even cover your rent. This is what lifestyle inflation looks like. As my salary grew, my expenses also grew by choice (not by chance). If you are not careful about this increasing expense, it could lead to problems in the long term.