Avoid Lifestyle Inflation
Do you remember moving out on your own for the first time? I certainly do! My first “apartment” had one small room with a mini fridge and microwave. Dishes were washed in the bathroom sink.
Some lifestyle inflation happens over time by necessity. Cash on hand and my savings account never seem to last much longer than they did living on much less. It seems that with every increase in income comes a bigger house, fancier phone, or updated cable package. Decreased income left me in a mad scramble to cut out the unnecessary. Lifestyle inflation seemed to match increase in finances to closely.
I think back to a time where we started making these decisions to increase and wish I had used more forethought. I’m certainly not saying I should have stuck to the one bedroom I started in! But I do wish I’d used better sense when deciding what and when to make life’s little upgrades. And now with my husband’s income set to see an increase it would be easy to add a few dollars here and there without really noticing a difference. And also ruining our chances at getting ahead.
I talked a little about my plans in the post Back to Basics. But I also want to make sure that I keep the idea of avoiding lifestyle inflation front and center. Over the last year we were able to cut out our cable bill and reduce our cell phone bill, electric, and grocery bills. I refuse to let those little things stack up again.
By avoiding lifestyle inflation we hope to save a good portion of our income for an emergency fund and then use another portion to make a bigger dent in the mortgage and my student loan. That will mean more money available for us down the road.
I’d love to hear your stories of lifestyle inflation or any tips you have for avoiding it!
If you are enjoying this blog and would like to help fund it you can do so in the side bar or through the donation button below.