Have you ever gotten a new job, raise, or promotion and ended up wondering why you don’t feel any richer? Lifestyle inflation is probably the culprit. You likely spent the “extra” money on what you previously thought you couldn’t afford:
Sure, you can technically afford these extra expenses, but they’re not getting you any closer to your financial goals.
If you find yourself earning consistently more money than you’re used to, make gradual changes to your spending. Replace one aging appliance before renovating your entire kitchen. Remember that just because there’s more money in your budget doesn’t mean you need to spend it. Focus on your financial goals and don’t let the thrill of extra spending money throw you off course. You deserve to treat yourself for your accomplishments, but don’t neglect the guidelines you’ve set for yourself so that you can achieve even more down the road.