6 Ways I Avoided Lifestyle Inflation
Every time I made more money, I refused to let my expenses grow with it—here’s how I kept lifestyle inflation in check.
- Sophia Zapanta
- 4 min read
I’ll never forget the first big raise I got at the manufacturing plant. For the first time, there was breathing room in the budget—and I was tempted to upgrade everything. A newer car, more dinners out, maybe even a fancier TV. But I remembered how hard things had been when Mary and I were first starting out, carefully counting every dollar just to make ends meet. That memory stuck with me and made me pause before letting my spending grow with my income. Instead of giving in to those temptations, I focused on keeping our expenses steady and using the extra money to build security for the future.
If you’ve ever found yourself spending more as you earn more, you’re not alone. Today, I’ll share six ways I kept lifestyle inflation in check—and five you can start practicing right away.
1. Pretending I Never Got a Raise
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Every time I got a raise, I acted like it never happened. Instead of upgrading my lifestyle, I funneled the extra money straight into savings, investments, or debt payments. If I didn’t see it in my checking account, I wasn’t tempted to spend it. This trick made it easy to grow my net worth without feeling like I was missing out.
2. Automating My Savings Before I Could Spend It
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I set up automatic transfers so that a portion of every paycheck went into savings and investments before I even saw it. If the money never hit my main account, I wasn’t tempted to use it on unnecessary upgrades. It forced me to live on the same budget while my savings quietly grew in the background. This one habit alone saved me from so many impulse purchases.
3. Keeping My Fixed Expenses Low
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Instead of upgrading to a bigger apartment or a fancier car every time I made more, I stuck with what I had. I knew that locking myself into higher monthly expenses would make it harder to save. By keeping my rent, car payment, and other fixed costs as low as possible, I gave myself the flexibility to put my extra income toward more important things. Now, I see stability as the real luxury.
4. Setting “Fun Money” Limits
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I didn’t want to feel deprived, but I also didn’t want to go overboard. So, I gave myself a set amount of “fun money” each month—guilt-free spending, but within limits. This lets me enjoy small upgrades (like better coffee or occasional travel) without blowing my budget. By capping my splurges, I controlled my spending without feeling like I was missing out.
5. Surrounding Myself with Like-Minded People
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Nothing makes you spend money faster than being around people who constantly upgrade their lifestyles. I made sure to spend time with friends who valued financial independence, not just status symbols. Instead of expensive nights out and shopping sprees, we focused on experiences that didn’t break the bank. Having the right circle made it much easier to stay disciplined.
6. Defining What Actually Makes Me Happy
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I realized that fancy stuff didn’t actually improve my happiness—financial security did. Owning expensive things felt good for about five minutes, but having a fat savings account? That feeling lasted forever. I focused on what truly mattered to me (freedom, travel, and peace of mind) rather than chasing temporary thrills. Once I got clear on my priorities, lifestyle inflation stopped being tempting.
Keeping lifestyle inflation under control wasn’t always easy. There were plenty of moments when it felt like we deserved to treat ourselves more often, especially after working hard for every raise. But sticking to these strategies helped us stay grounded and build long-term financial stability. Looking back, I’m grateful we chose to prioritize security over short-term gratification. Here’s how you can avoid lifestyle inflation:
Keep housing costs stableMary and I decided to stay in our modest home rather than upgrading, even when we could afford more. It kept our mortgage low and freed up money for savings.
Avoid new car paymentsInstead of buying a brand-new car, I kept driving my reliable used sedan and put the difference into retirement accounts.
Increase savings with every raiseEach time I got a raise, I funneled at least half of it directly into savings or retirement contributions, treating it as if I never had it to spend.
Limit impulse purchasesWe stuck to a monthly budget and avoided splurging on gadgets, clothes, or entertainment unless it fit within the plan.
Focus on long-term goalsMary and I kept clear financial goals—paying off the mortgage, building an emergency fund, and saving for retirement—which kept us motivated to resist unnecessary upgrades.
A little discipline now means a lot more freedom down the road. Start by keeping your spending steady as your income grows, and you’ll set yourself up for lasting financial success.