Tuesday, May 1, 2012

Lifestyle Inflation: Guilty!!

I was at my friend's house today and she had a Mary Kay book.  I started browsing through it and thought of how much I would like quite a bit of the different make-up.  She asked me if I wanted to order anything (casually, she wasn't pushing).  I realized then that I can't buy anything because we've cut our spending and are saving all the money we can for our house. 

I realized that we're completely guilty of lifestyle inflation.  Slowly but surely our standard of living crept up to meet our income.  We still saved money and paid down debt but we spent more money than when Y was a private in the army and I was a student waitressing part-time.  We used to second guess every purchase and rarely went out to eat. 

Before the last couple months, we went to the store when we needed something and just randomly picked up everything we needed wanted.  I always bought soda as soon as we ran out.  If I forgot my lunch, I went out to eat.  When I wanted new clothes for myself of Lil Punk, I went shopping and hoped that there might be sales. 

It is so easy to experience lifestyle inflation.  When you're in school and not making much money, you always look forward to the time when you can buy what you want.  Our friends subsequently made more money and we would do things together that cost more money.  I don't doubt that we will go back to where we were before we had to madly save for this house.

Have you experienced lifesyle inflation?  Where do you notice it the most?


  1. I've definitely experienced lifestyle inflation. Not good!

  2. Oh yeah, especially with our youngest daughter. When our oldest was young she could not even have lunch at school. I mean I could not even give her a dollar. The last one, I just throw money at the problem. We just have more, it is easy to just hand her $20.00.

  3. Absolutely we have (still are) experiencing lifestyle inflation. It's so hard not to - there's something really nice about being able to go to the grocery store and pick up whatever we want without having to stick strictly to a list. Especially now that Robbie's here we find we're treading water to keep up with him and have fallen off on properly planning ahead.

  4. When my husband first entered his apprenticeship he made less than half what he makes now as a journeyman. Looking back I wonder sometimes how we did it... but the fact is WE DID, and we still could. It's disappointing how fast that lifestyle adjustment happens, and how hard it is to reverse it.

  5. Slowly I've been experiencing lifestyle inflation as well. From the time I got my current job, and the little raise I got since then, slowly things have improved. The biggest thing being owning a car. I've tried to balance it out in other ways like more retirement savings and such but I think a little bit of inflation is good. Why else would we look to better ourselves. The difference lies in which areas we allow inflation to creep and by how much.

  6. Very true as we are in an inflation nation. You have to check this video by Ed Butowsky.