Article: Lifestyle Inflation

Posted By Paul

If you read the article that I posted about earlier:

The secret lives of American debtors

I mention Blake and his blog about trying to get out of debt.

One of his recent articles was entitled:

How to Prevent Lifestyle Inflation

Which I thought was a great article because it focuses on the psychology of spending pressure. He talks about the subtle pressures to spend more based on where you live.

The idea of "keeping up with the Joneses" is nothing new, but I like the fact that his first suggestion is to acknowledge the pressure. No one wants to say that they are experiencing "spending peer pressure" but of course we all experience it to varying degrees. Just like the old saying that the first step to fixing a problem is admitting that it exists, the first step in resisting a temptation is admitting that you are tempted.

I also liked his third point which was to allow yourself to inflate your lifestyle a little. You are not a bad person if you give yourself these little rewards here and there (provided that your circumstances are such that you can actually afford them).

I talk about similar ideas in some of my earlier posts:

My Financial Philosophy

Financial choices: Good Vs Better

Know Your Indulgence