Andrew Gleeson’s Post

The ugly truth about lifestyle inflation… Preventing lifestyle inflation isn’t just about staying within a budget—it’s about staying true to your long-term financial goals. It’s easy to let lifestyle creep sneak up on you. You get a raise, or maybe a bonus, and suddenly you're tempted to upgrade everything—your car, your home, your gadgets. But here’s the truth: Lifestyle inflation doesn’t just affect your wallet. It also impacts your ability to build a solid financial future. It tells people a lot more than just how much you can spend: • It shows you have discipline in your spending choices. • It reflects that you value long-term financial security over short-term pleasure. • It highlights that you’re thinking about the future, not just today. • It tells others (and yourself) that you're serious about your goals and are willing to make sacrifices to achieve them. Here’s how to stay on track: Set clear priorities. Keep your financial goals front and center, so every decision you make aligns with them. Live below your means. Just because you can afford something doesn’t mean you should buy it. Reinvest in your future. Use raises or bonuses to accelerate your savings, investments, or debt repayment. The way you manage your money speaks volumes about your values. Stay grounded, stay focused, and don’t let lifestyle inflation take you off course from achieving financial independence. Your future self will thank you!

Lifestyle inflation! More money doesn't necessarily mean more spending. Lifestyle inflation simply means having a constant appetite for upgrades, yet forgetting to improve on your financial situation. When you receive a raise at your work, the first instinct is to go out and spend more. Not a very good idea if you ask me. We all know ourselves better. Each time when income increases or when you receive a ka something, the first thing you think of is spending. Why do we do this? Have you ever thought of "not spending" when you receive more money? It's natural to want to treat yourself to nice things. But, if you're not careful, those "treats" can become a never-ending cycle of overspending, leaving you feeling financially drained and stuck all the time. Think of it like a balloon, as your income grows, your spending habits can inflate like a balloon, making it harder to control it and eventually leading to a financial "pop"!💀 To avoid lifestyle inflation you will need to keep your financial goals in check and prioritise needs over wants, invest in yourself in your future and practice how to be content. By doing so, you'll be able to enjoy the fruits of your labor without compromising your financial stability. I believe true wealth lies in living within your means and not in constantly trying to keep up with the trends. #yourfreindlyentreprenuer

Inflation that you can’t control can hinder your finances, but inflation that you can control can hurt more. This is known as lifestyle inflation. So, what is lifestyle inflation exactly? Lifestyle inflation – The increase in spending because of increase in pay An increase in money without means of managing it can increase your issues. Instead, increase your responsibilities; increase debt payments – increase saving and investing – increase giving. #inflation #lifestyleinflation #payraise #moremoneymoreproblems #paydebt #SaveAndInvest #donatemoney #managemoney

High income, high spending? Break the cycle of lifestyle inflation with these 12 tips. Use them to stay grounded on your path to wealth. Staying grounded is key to long-term wealth. Lifestyle inflation happens when spending increases with income. It can catch you off guard, making it difficult to save. Here are 12 tips to manage lifestyle inflation: 1. Track Spending - Know where your money goes. 2. Set budgets - stick to spending limits. 3. Save first, pay yourself before spending. 4. Avoid Debt - Don’t let credit cards trap you. 5. Make informed investments to increase your wealth substantially. 6. Live below your means - spend less than you earn. 7. Plan for the future - think long-term, not short-term. 8. Limit Luxuries - Treats should be rare. 9. Automate Savings - Make saving effortless. 10. Track your financial situation meticulously to maintain its stability. 11. Educate yourself - learn about personal finance. 12. Stay humble, remember your roots, don't try and keep up with others. A high income can inflate your lifestyle, but staying grounded secures your future.

Lifestyle Inflation: The Silent Killer of Wealth Don't let your hard-earned money slip away. Learn how to combat this financial pitfall and secure your future. For more info visit now: https://lnkd.in/g_FJt5VM #LifestyleInflation #WealthManagement #FinancialFreedom #SmartSpending #MoneyMatters #WealthBuilding #PersonalFinance #FrugalLiving #StayWealthy

🔔 New Post! As your income changes, be mindful of the impacts that lifestyle inflation can have on your finances. Read 3 tips to combat it 🔽

Is Your Raise Actually Hurting Your Finances ? 💰🎯 Discover Smooth Ways to Navigate Lifestyle Inflation. 📈 Explore them by reading our blog. Read Blog : https://bit.ly/3xZSZJ5 #Financialstability #Lifestyleinflation #Financialgoals #Longtermsavings #Buildingemergencyfund #Mutualfund #SIP #FundzBazar

Lifestyle Inflation: The Silent Wealth Killer "There’s a fine line between lifestyle creep and improving your standard of living" Increasing income is a crucial step towards achieving financial goals, such as debt repayment, investing, and retirement savings. However, higher earnings can also lead to lifestyle inflation, or lifestyle creep, where discretionary spending rises and potentially undermines financial stability. Understanding Lifestyle Inflation: Lifestyle inflation occurs when spending on non-essential items increases, often driven by: - Income growth - Short-term investment gains - Social comparison Warning Signs of Lifestyle Creep 1. Credit card debt 2. Risky long-term debt 3. Spending to project a certain image Avoiding Lifestyle Inflation while Improving Standard of Living To maintain financial balance: 1. Create a budget to understand savings and spending capacity. 2. Manage debt effectively. 3. Allocate funds for saving and investing. 4. Prioritize needs over wants. 5. Practice mindful spending. #Financialliteracy #Lifestyleinflation #PersonalFinance

6 bad money habits keeping you poor (and how to break free from them) Let's get straight to it... 𝟭) 𝗡𝗼𝘁 𝗽𝗮𝘆𝗶𝗻𝗴 𝘆𝗼𝘂𝗿𝘀𝗲𝗹𝗳 𝗳𝗶𝗿𝘀𝘁 • The poor way to manage money is paying your bills like rent, phone, Netflix first and then saving any money left. • The rich way is to pay yourself first and then bills. You will surprisingly find ways to spend within your means. • As soon as you get paid, automatically transfer 5%-10% into a savings account. This will be game-changing. 𝟮) 𝗡𝗼𝘁 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗶𝗻𝗰𝗼𝗺𝗲 𝘃𝘀 𝘆𝗼𝘂𝗿 𝗲𝘅𝗽𝗲𝗻𝘀𝗲𝘀 • Without a clear picture of your where your cash is going (and whether you can afford it), you risk overspending. • Create a budget that tracks both your income and expenses. There are some good apps you can use to help. 𝟯 𝗨𝘀𝗶𝗻𝗴 𝗯𝗮𝗱 𝗱𝗲𝗯𝘁 𝘁𝗼 𝗽𝗮𝘆 𝗳𝗼𝗿 𝘁𝗵𝗶𝗻𝗴𝘀 • The current average credit card interest rate in the UK is 35%. Once you get into the CC cycle, it's hard to get out. • Don't use, unless you can afford to pay for that purchase in cash. Settle balances immediately to eliminate interest. 𝟰) 𝗛𝗮𝘃𝗶𝗻𝗴 𝗲𝘅𝗽𝗲𝗻𝘀𝗶𝘃𝗲 𝘁𝗮𝘀𝘁𝗲 • Lifestyle inflation - upgrading your spending as your income rises can sabotage your financial goals. • Distinguish between 'needs' and 'wants' and prioritise. Give yourself some 'wants', but find a balance. 𝟱) 𝗢𝗻𝗹𝘆 𝘀𝗮𝘃𝗶𝗻𝗴 𝗮𝗻𝗱 𝗻𝗼𝘁 𝗶𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 • March inflation rates in the UK was ~3.4%. Most savings accounts pay around 4%-5%.    • This means your saving are only marginally growing above inflation so you won't build substantial wealth. • Diversify income streams - Understand your risk tolerance and consider investing in stocks, real estate and side hustles. 𝟲) 𝗡𝗼𝘁 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗮𝗻𝗱 𝗼𝗽𝘁𝗶𝗺𝗶𝘀𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝘁𝗮𝘅𝗲𝘀 • Most people just pay taxes without knowing they can legally minimise their taxes with some simple strategies. • For example, in the UK, ISA's are savings accounts which shields the interest gains you make from tax.    • Solopreneurs can benefit from optimising their business structure, e.g. Sole Trader vs LTD company. ✍️What bad money habits do you have? ♻️ Reshare if you found this valuable! P.S Remember to follow me for more tips on productivity, career growth and finance simplified!

Your personal inflation is likely much higher than 6%! While the official Consumer Price Index (CPI) data shows inflation at a five-year low, it's essential to recognize that the CPI is an average – one that doesn't necessarily reflect your real cost of living. Relying on this number alone when planning for your financial future is a mistake many make, leading to severe underestimation of the actual inflation rate that affects individual households. Here’s why: The CPI measures inflation across a broad spectrum of goods and services, from food to transportation, averaging costs across rural and urban India. But if you're living in a city like Mumbai or Bengaluru, your lifestyle – and your expenses – are vastly different from someone in a smaller town. The CPI doesn't account for personal spending habits, regional differences, or lifestyle preferences that contribute to higher inflation for individuals. For instance, medical inflation in India is one of the highest in the world, pegged between 12% to 14% annually. Even routine visits to doctors and specialists, combined with rising health insurance premiums, can eat up a significant portion of your budget over time. Education costs for children are growing at around 11%, and if you're living in a rented apartment, the constant increase in rent adds another layer of inflation that CPI does not fully capture. And then there are lifestyle expenses – branded clothing, personal care products, fitness regimes, dining out, or even your daily cup of coffee at the café. The CPI doesn't factor these in, but they’re a part of your monthly budget. What does this mean for your financial planning? Most individuals underestimate inflation when planning for retirement. They look at the CPI, currently at 3.54%, and base their future projections on this number, assuming costs won’t increase dramatically. However, personal inflation can be easily twice as high, or even more, depending on your unique circumstances. If you’re planning for retirement or building your financial future, it's crucial to assume a more conservative inflation estimate. A realistic assumption would be around 10%, considering the rapid rise in healthcare, education, rent, and other lifestyle expenses. This ensures that you’re safeguarding against the risk of outliving your money, especially as life expectancy increases but so do the associated costs of living longer. Ask yourself: Are you really considering your personal inflation rate in your retirement plans, or are you relying on a number that doesn’t reflect your reality? 👉Follow Chakravarthy V for more insights on #personalfinance, #wealthmanagement, and #investing! 💼📊 Follow Chakrivardhan Kuppala for more such insights.