Lifestyle Inflation
Mr. X, 27, just moved into a new city. His new job, comes not only with a salary hike but also with many perks. But after the first month – despite the proposed hike in his earnings, Mr. X finds himself left with hardly any money in his bank account. “Where did all the money go?” This is the question that we generally face not only in the above mentioned case but also likewise. It is called "Lifestyle Inflation" . How and when do we get affected by the Lifestyle Inflation ? When people move to a higher salary or come in possession of inheritance money, they often tend to over exceed their spending limits and capacity. At times, people might simply indulge because they have a need to “keep up” – with their social circles. Here are a few simple ways to handle Lifestyle Inflation: Keep some perspective When you land with some money in your hands your first instinct is to buy that thing because ‘you-have-wanted-since-a-long-time’ , instead you could start by r...