Increasing your spending when your income goes up. This phenomenon makes it perpetually difficult to get out of debt, save for retirement or meet financial goals. Lifestyle inflation tends to continue each time someone gets a raise, receives a bonus or an unexpected windfall, making it the primary cause of people getting stuck in the rat-race of working harder and harder just to pay the bills (because their bills grow in line with their income).
© Goldzone Education, LLC. All rights reserved.