Most middle-class Americans work hard to earn raises and promotions that promise to provide a better standard of living. According to The Simple Dollar, extra income should not always equal extra spending.
Lifestyle inflation happens when a small raise at work translates into a new car. The new income might afford the extra expense, but that also means that there is no extra money moving towards debt repayment or savings. Squash lifestyle inflation by setting goals and setting aside any financial windfalls until there is time to budget it wisely.
Rick Good spent ten years in the newspaper business, including with The News & Observer (Raleigh, NC) and The Greenville News (Greenville, SC). He co-wrote, with Melinda Coleman, Rutledge to Riley: Governors of South Carolina, 1776–Present (Published by The Greenville News), and is the author of Mind Games Trivia #1 (Amazon). He has recently spent 15 years creating original trivia content through Sounds Good Mobile Entertainment and continues that with his new company, SGME Software. He edits The Smart Reader’s money, real estate, and business coverage.
