When lifestyle inflation isn’t even fun

When I think of lifestyle inflation, I think of going to my favorite sushi restaurant every weekend. I think of buying the pricey cashmere sweater I've been eyeing and then buying ten more expensive sweaters. I think of spending weekends on yachts and drinking champagne while a guy on a violin serenades me. Well, scratch that last one, because I get seasick, but yeah. I think of lifestyle inflation as being along those fancy lines.

But sometimes it isn't fancy at all. Sometimes lifestyle inflation is just little things that add up. And sometimes, those little things aren't even fun or enjoyable.

Here are some boring examples of my own lifestyle inflation.

Health insurance

If getting older isn't depressing enough, when I turned 30 in April, my health insurance premium increased by $20 a month.

I'm joking about aging being depressing (bring it on), but the price hike was frustrating.

Rent

For Los Angeles, Brian and I pay a modest amount in rent, especially considering both our location and our view. So when the landlady told us our rent was increasing by three percent, I was disappointed, but I also knew it was still a good deal overall. Plus, the inflation was expected when our original lease expired.

But this three percent increase still equates to an extra $40 a month, or $20 each. Between this and my health insurance premium, my budget has now increased by $40 a month.

Business expenses

For my freelance work, I need to use a specific video-editing program, and that program costs $20 a month. Sure, I can write it off, but I'm still paying more than my budget has anticipated. And that budget is now at about $60 extra per month.

This expense was my light bulb moment.

Upon paying for it, I groaned, and then I thought, “Well, why else do I work hard for my money if not to be able to shrug off a measly twenty bucks a month?”

I stopped myself, realizing I'd used the same thought process about the health insurance and rent increase.

“Wait. That's how lifestyle inflation creeps up on you!” I thought. “And it's not even fun!”

Sure, I'm glad I have health insurance. But I wouldn't say I'm enjoying it. I'm glad to have work that requires using that editing software. I wouldn't say I use it for fun.

I guess sometimes an inflated lifestyle is simply accepting budget inflation without doing anything about it. And hey, that's okay! Because it's inevitable — prices go up, and there's only so much we can do about that.

Also, lifestyle inflation gets a bad rap, but it's why lots of us want to get rich in the first place. We want to be comfortable enough to not worry about a little inflation — things like a good insurance plan increasing by ten bucks a month. Lifestyle inflation isn't just about having fun on yachts, it's also about not fretting so much over inflation itself.

But I'm not quite there yet. I still have ambitious savings goals; I still have reasons for wanting to maintain my budget. And sure, I may not be able to help some areas of my life from getting more expensive, but I've been working on finding ways to maintain my overall budget. That means cutting back in other areas.

I haven't been living like a pauper. Over the past year, I've deliberately given myself the financial elbowroom to enjoy some things, and that's great. It falls in line with the Get Rich Slowly philosophy. But, for me, it's time to bring it back a little bit. Simply put, I'm not ready for lifestyle inflation.

Earning more

Earning more is a necessary part of getting rich slowly; it's not enough to just save. The formula works best when you earn more and maintain your same lifestyle. But earning more to catch up to a lifestyle that's already increased feels like doing it backwards.

Just like it's not enough to save without earning more, I don't feel like it's enough to just earn more and not save. Making more money is the obvious way to counteract my lifestyle inflation, but ideally, I'd like to deflate my lifestyle, too.

And there's another hitch: I don't have a lot of free time. I'm thankful that I have the option of taking on more work if I want it, but right now, my weekends are more precious, and I'd rather cut back on expenditures than cut back on that free time. So here are a couple of simple ways I've cut back to counteract that extra $60 a month.

Saving more

A couple of times now, I've started on a load of laundry only to realize I don't have enough quarters to put them in the dryer. That means hang drying them on my deck. “What are you, a cavewoman?” a friend teased. But hang drying my laundry doesn't take much more time and effort, and if I do it every time, it's cheaper to the tune of about $10 a month. It's a small amount, but it makes me feel a little bit better about that extra $60.

I'm sure at some point, I'll go back to the luxurious convenience putting my clothes in the dryer. Probably in the wintertime, when it's cold and I want a pile of something warm to jump into. And then, yes, my lifestyle will once again inflate by ten dollars a month. But at least that'll be my own doing.

Lifestyle deflation

My main source of entertainment is going out to eat. I don't know what it is; I just love it. I get more excited about the anticipation of restaurant food than most people do. When the waiter brings my plate, I literally applaud at the table. Yes, I realize dining out isn't typically frugal, but this is my thing. I don't go to concerts or the movies much. The large majority of my entertainment budget goes to sushi.

Brian and I typically go out to eat, just the two of us, on Friday nights, and it's something I look forward to all week long. It celebrates our hard work during the week, and it's also our date night. But if I want to deflate my lifestyle, this treat is going to have to be tweaked. If I stay home just one Friday night out of the month, I'll save $30-$40.

Cutting back even just a little bit, I'm able to offset my lifestyle inflation by $50. Thus, my lifestyle has now only inflated by $10 a month. That's $120 a year — still an increase, but better than $720.

I could probably cut back more, but at some point, it's about balance. Yes, I want to save up, but I want to enjoy my financial freedom, too. Giving yourself some elbowroom often leads to lifestyle inflation, but I suppose that's when you have to set a boundary and draw a line. Apparently, mine starts at $60 a month.

“So the point of this article is to air dry your laundry and not eat so much sushi?” Yep, pretty much. But the point is also that little things add up. And that can work just as well in your favor as it can against you.

A premium hike here and rent increase there can fatten your budget quite a bit without you even realizing it. But cutting back, even just a little bit, has the same effect.

More about...Budgeting

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Stacie
Stacie
7 years ago

Hmm I don’t think your examples are lifestyle inflation at all. It sounds like plain-old price inflation to me. It’s great that you found ways to offset the higher costs, but it’s not like your lifestyle was improving when the costs went up. You aren’t getting a better health insurance plan or a better apartment, just paying more for the same.

nicoleandmaggie
nicoleandmaggie
7 years ago
Reply to  Stacie

Yes, this.

There’s a difference between the real value of your money and the nominal value of your money, and that differences is caused by inflation, not lifestyle inflation. With inflation you need to make sure your real wages don’t go down, which means your nominal wages increase at at least the rate of inflation.

Elizabeth
Elizabeth
7 years ago

And your savings!

I’m worried about the money I’ve got sitting in a so-called “high interest savings account” for my emergency fund and home downpayment. I shudder to think of what I’ve “lost” in terms of buying power or growth if it had been in a better investment.

Debi
Debi
7 years ago
Reply to  Stacie

I agree with Stacie. I think of lifestyle inflation as spending more because you have it and want to, rather than something that is imposed on you, like a rent hike. I do like the point about how small changes in spending can be used to counter those non-voluntary spending increases.

Kristin Wong
Kristin Wong
7 years ago
Reply to  Debi

Hey all, Yeah, true, perhaps these specific examples are more needs than wants. But I I guess I referred to it as “lifestyle inflation” because a couple of years ago, this wasn’t my lifestyle at all. I was living in a crappier apartment and not even thinking about spending money on my business, as I didn’t have one. So I suppose my overall realization was that I’ve moved forward in life without thinking about it, and the things I once thought of as “wants” have now become “needs.” And I’ve accepted them as needs and accepted the fact that their… Read more »

Sam
Sam
7 years ago
Reply to  Stacie

Agreed, increase in rent, increase in health insurance and increase in work supplies to me is not lifestyle inflation.

Rather, I view lifestyle inflation as spending more on vacations, spending more on services (i.e. a cleaning service), spending more on fun stuff like increase in DirecTV or increase in NetFlix costs.

Elizabeth
Elizabeth
7 years ago

Interesting — I thought of “lifestyle inflation” as having to do with wants rather than needs? For instance, “I earn more money now, I deserve a bigger home/nicer car, etc. even though what I’ve got now is just fine”. I think that’s why lifestyle inflation gets a bad reputation — in this sense, it’s a choice and it’s something we have more power to control. Whereas rising costs on everything from food to housing — we don’t have much choice about that! I don’t tend to think that’s lifestyle inflation but rather a rise in the consumer price index, etc.… Read more »

Jane Savers @ Solving The Money Puzzle
Jane Savers @ Solving The Money Puzzle
7 years ago

The cost of food basics is up. My wage is frozen and I am happy that my hours haven’t been cut so far.

I do not participate in life style inflation – regular old inflation is gunning for me.

I use my dryer two or three times per year because I just can’t afford it and now my city is charging for every drop of water that I use. Expenses rise and my income never does.

Michael @ The Student Loan Sherpa
Michael @ The Student Loan Sherpa
7 years ago

The changes in rent price can be a huge lifestyle inflator… even if you never move. I think many landlords know they can raise the price after one year because most of the time people who want to stay will pay a little extra rather than dealing with a move.

Sam
Sam
7 years ago

Speaking as a landlord, and only speaking for me, we raise rent from year to year to cover increases in taxes, increases in insurance and increases in costs related to upkeep and maintenance.

Mrs PoP @ Planting Our Pennies
Mrs PoP @ Planting Our Pennies
7 years ago

We generally only increase the price when we WANT tenants to move or when there’s already turnover in a unit. Losing a month (or more) of rent by causing turnover raising the rent prices unnecessarily is akin to cutting off your nose to spite your face. It’s often not worth it.

Ramblin' Ma'am
Ramblin' Ma'am
7 years ago

I think that depends on the landlord. I’ve usually dealt with smaller landlords, as opposed to big management companies, and I’ve never had a rent increase every year. They lose too much money by having apartments vacant while they look for new tenants. My current landlord has raised my rent $25 in four years (knock wood).

Carla
Carla
7 years ago

I’ve been a tenant in both California and Oregon (Portland) and never had an increase in rent. As a previous poster noted I only deal with small landlords and rarely a management company. I think being a good tenant helps as well.

Sally JPA
Sally JPA
7 years ago
Reply to  Carla

In Silicon Valley right now, a rent increase of 10-25% a year is standard. It’s insane.

John S @ Frugal Rules
John S @ Frugal Rules
7 years ago

We just had a similar increase with our health insurance and while it was small (overall) it certainly is no fun to see those increases. Like you said, it does add to the budget, but it just means that we need to find other ways to cut costs.

Tina
Tina
7 years ago

I agree. We had an $50.00 per month increase in our auto insurance in May since our daughter turned 16 and got her driver’s license. Now we have 2 teenagers on our insurance. I have had to also figure out ways to cut back even though we have an already tight budget.

During spring,summer and fall, I always hang clothes out to dry and it’s great!

Curtis@PayOffMyRentals
7 years ago

Inflation and Lifestyle inflation are two powerful reasons for making sure your investments beat inflation and to the extent possible, taxes. Both will rise going forward IMHO.

I just wrote an article yesterday on to ROTH or not to ROTH while accelerating the payoff of my rental real estate.

http://payoffmyrentals.blogspot.com/

Prices will rise, and owning your own business is another protection as you have greater control of pricing goods and services to keep up with inflation. So, there are plenty of proactive things that can be done aside from just cutting back to meet the challenge.

My Financial Independence Journey
My Financial Independence Journey
7 years ago

It doesn’t seem like you’re discussing lifestyle inflation as much as you are price inflation or cost of living increases. Lifestyle inflation is scaling up your spending in order to buy more goods and services, while price inflation is scaling up your spending to buy the same goods and services. For example, when I moved for my current job my expenses shot up by 50%, my lifestyle remained the same. That’s price inflation due to moving from a low cost of living location to a high cost of living location. I was really hoping for some lifestyle inflation when I… Read more »

Kristin Wong
Kristin Wong
7 years ago

Haha: “I was really hoping for some lifestyle inflation when I got my new job.” I’m sure you’ll get there! 🙂 “Lifestyle inflation is scaling up your spending in order to buy more goods and services…” I think the definition is where the disconnect is. My definition of lifestyle inflation is an increase in expenses related to your lifestyle. Deciding to become a freelance writer and live in a decent Los Angeles neighborhood was a lifestyle choice, no? Yes, the expenses and inflation that come with them are necessary, but to me, moving to a nicer part of town and… Read more »

JoDi
JoDi
7 years ago
Reply to  Kristin Wong

I agree with the other posters that the examples given are not about lifestyle inflation at all but about price inflation and cost of living increases. “I think the definition is where the disconnect is. My definition of lifestyle inflation is an increase in expenses related to your lifestyle.” And I think that’s the problem. You’re writing about a topic for which there is already a definition, and it doesn’t fit your stated definition. Lifestyle inflation means your “lifestyle” has inflated – buying a more expensive brand of car, moving to a bigger apartment, paying someone to do something you… Read more »

Kristin Wong
Kristin Wong
7 years ago
Reply to  JoDi

But there’s not already a fixed definition. For example, one site defines it: “Lifestyle inflation indicates the rise in your lifestyle expenses.” In this case, we’re talking about expenses, not the lifestyle itself. Here’s another definition: “Lifestyle inflation is when your spending increases to ‘match’ your new income.” By telling myself, “I have the money to afford this rent increase and not move to a smaller place,” I’m increasing my spending to match my new income. Yes, I’m still living in the same place. But being able to shrug off the increase because I earn enough–that’s a new luxury for… Read more »

nicoleandmaggie
nicoleandmaggie
7 years ago
Reply to  JoDi

Inflation has an actual set definition, and that’s what you’re using. You’re talking about nominal prices going up, causing the real value of your nominal wage to go down.

JoDi
JoDi
7 years ago
Reply to  JoDi

I can’t reply to your reply #37 so I’m replying to my own. 😉 Did you read the articles you quoted those definitions from? They don’t support your argument. There is an accepted definition of lifestyle inflation, and that’s why just about every commenter here disagrees with the examples used in the article. The whole paragraph of the second definition you quoted is: “Lifestyle inflation is when your spending increases to “match” your new income. You might decide that you can afford a new car (and its payment) now that you have more money. Or you might decide that you… Read more »

lmoot
lmoot
7 years ago
Reply to  JoDi

I agree with JoDi, and with NicoleandMaggie that there is already a set definition. The purpose of definitions are to “define” something separate, and on its own. Not to try to broaden the meaning to include other things that already have their own definition as well; then you’re getting into an “everything is nothing” philosophy…that’s just a slippery slope down the rabbit hole and nobody wants that! I can appreciate that the article is trying to show a different view of lifestyle inflation, but unless you specifically state beforehand that that’s what you are trying to do, to try and… Read more »

J
J
7 years ago

Ditto others, this doesn’t sound like lifestyle inflation at all. Lifestyle inflation, to me, is when you start adding more “luxuries” into your regular spending patterns (more eating out, nicer car, more/nicer vacations, etc.) because you’re making more money so you can “afford it” and you “deserve it”.

Ramblin' Ma'am
Ramblin' Ma'am
7 years ago
Reply to  J

Yes, and then pretty soon those new wants can start feeling like needs.

Kristin Wong
Kristin Wong
7 years ago
Reply to  Ramblin' Ma'am

That was kind of my point. I wanted a nicer apartment, so now I live in one. Yeah, we got a good deal, but there’s cheaper rent out there. Yet I now consider this a need, and I simply accept the inflation as necessary. And I think my attitude–“well why else do I have money if not to shrug off $20 a month”–is indicative of lifestyle inflation. A couple of years ago, this much inflation would’ve floored me. Now, I was almost ready to just shrug it off because that’s life, that’s inflation. I’ve accepted it, which I think, in… Read more »

Stacie
Stacie
7 years ago
Reply to  Kristin Wong

I get your point. I guess I see it as your lifestyle inflated when you chose to move to a nicer apartment. But now that you’ve been in that apartment for some time, it’s not lifestyle inflation. Most likely, the rent even in a crappy apartment would be higher today than when you moved out of your last one.

Ramblin' Ma'am
Ramblin' Ma'am
7 years ago
Reply to  Kristin Wong

Although I still don’t think these examples are really lifestyle inflation, I do think your point that “lifestyle inflation isn’t always fancy” is a good one. It is easy to think of lifestyle inflation as really extravagant spending like driving a luxury car, going to the spa every week, etc. That way, one can imagine oneself to be immune to it. But lifestyle inflation can be smaller or more modest things, too, like buying lunch at work or moving to a slightly larger apartment.

Matt Becker
Matt Becker
7 years ago

While we can certainly discuss whether these specific examples are actually lifestyle inflation, I think the general point is a good one. You don’t typically go directly from living in a small apartment with a few roommates to a 10,000 square foot mansion on your own. It is more likely a series of very small decisions that in isolation don’t appear significant but when put together start significantly affecting your finances. Increasing your awareness of how each of these small pieces adds up to the bigger whole is a good thing.

Savvy Financial Latina
Savvy Financial Latina
7 years ago

While I agree you experienced price changes due to inflation, I understand your points. Frankly, I haven’t seen prices getting better since I was alive. It has been a constant rise. We have definitely seen lifestyle inflation in our life. It has been slow, yet steadfast. Since graduating college our expenses have nearly doubled. While I thought this would be okay, a year after calculating my budget, I’m trying to figure out how to cut our budget.

elizabeth c.
elizabeth c.
7 years ago

Well, prices going up on things you need – no one thinks that’s fun. But a headline like “paying more for the same old things is not fun” would not get any clicks at all.

Debi
Debi
7 years ago

Debi says:
I agree with Stacie. I think of lifestyle inflation as spending more because you have it and want to, rather than something that is imposed on you, like a rent hike. I do like the point about how small changes in spending can be used to counter those non-voluntary spending increases.

WWII Kid
WWII Kid
7 years ago

If your health insurance went up only $20 a month, consider yourself lucky.

I agree this seems to be more about inflation than lifestyle. Lifestyle would be more like Paris Hilton complaining that her maid wanted a raise.

Jen From Boston
Jen From Boston
7 years ago
Reply to  WWII Kid

I agree. My health insurance went up by $100/month this year. And your examples are NOT lifestyle inflation. Lifestyle inflation is subscribing to satellite radio because your income increased.

slccom
slccom
7 years ago

Your freelance fees should be increasing as well. Not only are your expenses up, but your skills and expertise and reputation are, too.

cherie
cherie
7 years ago

Especially for freelancers,another way to offset such increases, which I agree with some others don’t really feel like ‘lifestyle inflation’ so much as real life inflation of some sort LOL – is to increase your fees – I know some folks earnings are frozen and they’re grateful for what they get. But if you set your own rates, and everything else is going up – why shouldn’t your rates go up? Couldn’t hurt to try.

Kristin Wong
Kristin Wong
7 years ago
Reply to  cherie

Quick side note! I really appreciate the comments. Not only have you readers given me lots to think about, but you’re so diplomatic, even when you don’t agree with my point. As someone who writes regularly for the Internet, and reads all the comments, I very much appreciate this.

Lane
Lane
7 years ago
Reply to  Kristin Wong

I applaud you, Kristin, for sitting down and pondering your choices when your costs rise, whatever kind of inflation this is. I am now financially independent and got this way making a good income AND saving a lot of it rather than spending on things I could “afford”. Figuring out what you really want and paying for that is a sign of maturity.

Jake @ Common Cents Wealth
Jake @ Common Cents Wealth
7 years ago

You bring up some great points. Some parts of lifestyle inflation are necessary and you can’t avoid it. Most of the time these things aren’t very fun, but you don’t want to live without it. I’ve been very conscious about not letting lifestyle inflation happen on the areas that I can control (like my miscellaneous spending and eating out), but I don’t really fret over the increase to necessities.

krantcents
krantcents
7 years ago

Prices have been increasing although there is no inflation. Either you increase your income or cut expenses! I found a long time ago, that I had more control over how I spend my money vs. increasing income. Now I have more control over both. It is a matter of choices.

Beth
Beth
7 years ago

RE: Dryer usage You’ll actually save a lot more than $10 by not using the dryer every month. Drying your clothes breaks them down a lot faster – where do you think lint comes from, after all? By using drying racks, you can keep your clothes looking fresher and in better shape, so you can make the clothes last even longer, saving you more money down the road. If you regularly use fabric softener or dryer sheets, you’ll obviously save even more by not using them as frequently. While drying racks can have a bit of an upfront cost, you’ll… Read more »

Carla
Carla
7 years ago
Reply to  Beth

I totally agree with you. When I was living in California with a yard we hung out our clothes weekly in the shade and they did last so much longer.

Now living in a small apartment with no yard or deck in rainy Portland, in the dryer it goes except for the delicates.

Elizabeth
Elizabeth
7 years ago
Reply to  Beth

I second your point about clothes lasting longer not using the dryer! I put things in for about five minutes to get the wrinkles out and then hang to dry.

Another bonus for me is my clothes don’t shrink. When you’re a tall girl, it makes a difference!

Brad
Brad
7 years ago

Hi Kristin, I enjoyed the article and I hate to nitpick a phrase you used after all the ‘lifestyle inflation’ issues in prior comments, but I just find the term “write it off”, as described in “and that program costs $20 a month. Sure, I can write it off…”, to be one of the most insidious phrases in all of personal finance. I’m a CPA and I hear this constantly and it bothers me each and every time! I can still picture my mom saying, ‘Oh, the bosses go out to lunch every day and then get to write it… Read more »

Stephanie
Stephanie
7 years ago

You can save on your restaurant/sushi habit by ordering ahead for takeout. You’ll save on service (and alcohol, if that’s your thing)…with the added bonus that you can relax and do date night in your jammies. If that.

Even if you still go out once or twice a month and eat at home the other two or three, the savings is remarkable.

stellamarina
stellamarina
7 years ago
Reply to  Stephanie

Or have a date night out as a picnic in the park.

Andrew Wise
Andrew Wise
7 years ago

I agree with the comments concerning how this is price inflation rather than lifestyle inflation. I would add that I think of lifestyle inflation having a “mindless” component to it so that, like price inflation, your spending creeps up as you make a series of decisions to pay for gradually nicer things. Not to be excessively critical, but another thing that bothered me about this post was the $10 “saved” on laundry. How long did it take to save this money versus your hourly rate as a freelance writer? You should always balance saving against the foregone opportunities required for… Read more »

Kristin Wong
Kristin Wong
7 years ago
Reply to  Andrew Wise

Welp, coincidentally I did laundry this morning. I wrote an article, and decided I needed a recharge, so I went to get my clothes out of the washer and then I put them outside. Took, I dunno, five minutes? Kind of a pain to carry a bundle of wet clothes around my building, but to answer your question, it took me about five minutes to save $1.50. I don’t get paid by the hour, but by the article. When I need to step away and think, I usually do some mindless task like clean the kitchen or stare out the… Read more »

Debi
Debi
7 years ago
Reply to  Andrew Wise

I was going to ask Kristin the same thing about her comment about how she could have downgraded her computer and then wouldn’t have contracted for the upgraded software to run her business. If the new version increases her ability to earn then it might have been a really bad decision to not use the new version. The opportunity cost has to be balanced against the monthly charges.

Christina
Christina
7 years ago

I really enjoyed your article. Sometimes it is easy to let the little things go because they are “little”. I am getting better at realizing how those little cuts can make a big difference 🙂

Teinegurl
Teinegurl
7 years ago

Kristin, I feel like some of the commenters “beat up” on you. I just wanted to say i like your article and though so may feel the def. needs tweaking i get the point of your article and got the takeaway. I think lifestyle inflation starts with these little increases here or there for that bill , for this thing and next thing you know you suddenly have $100 or more added to your budget. Thinking back on old articles you’ve written (about being a workaholic) i’m sure these little things like date night are good for you. Just like… Read more »

Kristin Wong
Kristin Wong
7 years ago
Reply to  Teinegurl

Haha, thanks for the kind words! Naw, I don’t think anyone’s beating up on me. They make a really good point. And generally, when so many people agree on something, it makes me rethink my own stance. I still stand by the idea that accepting inflation without worrying about how it affects your budget is a lifestyle luxury, and that’s a new luxury for me. But I see what they’re saying: it’s not lifestyle inflation because it’s the same old stuff, and (ideally) my income will increase as my lifestyle cost increases. (Ideally, ha!) But yeah, prices go up, and… Read more »

Elizabeth
Elizabeth
7 years ago
Reply to  Kristin Wong

@Kristin — I think the “luxury” is a good thing because you’ve reached a point in your financial journey where you don’t have to panic about a rent increase. You’ve paid off your debt, you have savings and you live below your means. I know the world became a lot less scarier (financially) when I accomplished those three things.

Still, I think your point is a good one — how do we react to price increases? Your post has made me think about some of the ways my expenses have crept up.

Kristen
Kristen
7 years ago
Reply to  Elizabeth

I agree with Elizabeth. Admittedly, I had a knee jerk reaction when I first read your article of “hey this isn’t lifestyle inflation” but as I read on, it made sense. I don’t think that not worrying should be considered a luxury. I think you should feel proud that you have set up some financial security for yourself. In the last month, I have totaled my car, almost flooded my condo and broke my washing machine (wow, listed like that it sounds really bad. I wasn’t hurt in the accident.). Five years ago, these things would have pushed me over… Read more »

cathy
cathy
7 years ago
Reply to  Teinegurl

Teinegurl, I agree with you. It seems that people been more concerned with whether or not Kristin used the term “lifestyle inflation” correctly or not rather than the actual point of her post. I think she makes some good points and while most people might think of lifestyle inflation in terms of luxuries like a more expensive car or eating out more often–and at fancier restaurants–or going on expensive vacations, I think it is presumptuous of GRS readers to assume that moving to a nicer apartment in a nicer neighborhood wasn’t a form of lifestyle inflation for the OP. If… Read more »

Elizabeth
Elizabeth
7 years ago
Reply to  cathy

Actually, she talks about the rent increase as the lifestyle inflation – not living in a nicer apartment. I think that’s what has people confused there? I don’t think lifestyle inflation is always a bad thing. I for one wasn’t going to live in shared student housing the rest of my life so I eventually got an apartment of my own. Sometimes “lifestyle inflation” — like Kristin’s nicer apartment and business expenses — are a result of transitions that improve our lives, and I don’t see anything wrong with that when the decisions are made with long-term financial goals in… Read more »

Matt @ Your Living Body
Matt @ Your Living Body
7 years ago

Regular inflation isn’t fun either…

Some of those thins just happen but as long as you can keep your social life under control and affordable there should be plenty of ways to save here and there.

Jeff @ Binary Options Trading
Jeff @ Binary Options Trading
7 years ago

Time and time again, I keep coming back to Kristin’s posts. She has an awesome writing styles that manages to engage you right to the end.

I’ve even seen reviews of her writing in other forums. Keep it up Kristin!

Thanks for the reality check on inflation. 😉

Mike@WeOnlyDoThisOnce
7 years ago

Lifestyle deflation seems like a great, albeit tricky, way to combat misusing our financial progress. Great insight.

#Broke Millennial
#Broke Millennial
7 years ago

Another point to make with lifestyle inflation is change in taxes. When social security went up 2% this year I saw about a $30 decrease in my paycheck. Then public transit costs in NYC went up from $104 to $112 per month. Certainly caused some frustration.

Great point about lifestyle deflation and finding little ways to cut some spending and make your money back.

Kirk Kinder
Kirk Kinder
7 years ago

You shouldn’t cut out the Friday evening dinner. Remember, money is a tool. It should be used to align with your goals. The time you spend with your husband eating out clearly enhances the relationship and provides joy. So this is money well spent. At $30 or $40 per week, you aren’t eating at extravagant restaurants so go out and enjoy your Friday night meals.

Mary
Mary
7 years ago

I completely relate. Two things I love to spend money on: coffee (Seattlite). At $5 bucks a pop it’s bloody expensive, but I save it for weekends only now. I make it at home during the work week. Usually I get pastries and coffee for me and my beaux on the weekends. It’s still less than brunch out. And I hate to cook so going out to dinner is amazing to me during the week, especially when I’m beat after work. I’d rather walk more often and cut out bus rides so I can enjoy my coffee and pastries on… Read more »

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