It's much worse than a 8% increase!




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Inflation is a big topic right now; however, there is another form of inflation that is much worse and it is called "Lifestyle Inflation," which is "Increasing your spending as you make more money.

Lifestyle inflation can increase you cost of living much more that spending 50 cents more on a gallon of gas. In this video I talk about, "10 Ways To Avoid Lifestyle Inflation."


1. Stop focusing on the things you can’t control

When it comes to personal finances, we often focus on the things we can't control like market crashes, recessions, or inflation. I think it is important to understand what is going on, but it is more important to focus on the things you can control. Lifestyle inflation is completely controllable and should be a big focus on personal finances.

2. Always be preparing for economic doomsday (but don’t listen to it)

Economic doomsday is those panic stories that we often hear regarding recessions, market crashes, and inflation. I do not see much benefit consuming this content because all it does is make you panic. Instead, always be preparing for something to happen, because it will, but don't spend all your time worrying about it.

3. Never, ever base your spending off your salary

Lifestyle inflation is basing your spending off of your salary. As your salary increases, your spending increases. This is the main idea behind lifestyle inflation. Instead, create a comfortable budget to live by and include a realistic amount to grow an emergency fund or invest.

4. It’s all about how much money you keep

It's not about how much money you make, but it's about how much money you keep. It really doesn't matter that much how much money you make because if you're spending it all, the you are not saving anything. We often think the only way to solve a financial problem is to make more money, but most of the time it is because someone is spending too much money.

5. Be aware that most of your budget goes to four things

Most of a person's budget goes to housing, utilities, transportation, and food. These four areas are the areas that can make or break your budget. Instead of focusing on the small expenses, try to lower the big ones to avoid inflating your life.

6. Once you have “nice,” it’s hard to go back.

There is nothing wrong with upgrading something; however, it is important to do it intentionally because once you have something nice, it is hard to go back. If you are not paying attention to your upgrading, your lifestyle can become very expensive.

7. Constantly be revising things

Regardless of how much money you make, it is important to be constantly looking at your bills and seeing if there are any cheaper alternatives. We can get to the point where we stop focusing on the small bills and end up overpaying.

8. Understand that money is relative

How far $1 goes is based on a person's spending habits. Money is very relative and it is important to know that money can go much further if you are managing it correctly. Lifestyle inflation can make money go a lot quicker if you are not using your money intentionally.

9. Know the factors that increases your spending

Where you live, who you surround yourself with, and what you find value in are factors that increase your spending and can inflate you life. It is not easy to change those fields in your life, but it is important to know that those are the things that can inflate your life.

10. If it's not inflation it's something else

There will always be something to panic about in the world. When it is not inflation it might be an all time high market or recession. It is important to focus on the things you can control and not worry too much on the things you can't control.

*None of this is meant to be construed as financial advice, it's for entertainment purposes only. Austin Williams does not guarantee any specific outcome or profit. Some links above include affiliate links to which Austin Williams will receive compensation at not cost to you.*