More Money, More Problems.

by Anthony Giove

The way our nation has shaped up in the past couple of decades has really confused many people and twisted their minds in different directions than where they should be. The economy and social structure of the century we currently live in is solely based upon income and money related finances.

Most everyone’s primary life goal is to make more money, and that goal is constantly rising because everyone constantly wants more money. What people aren’t aware of right away is that with more money usually comes more problems.

Lifestyle inflation usually comes into effect during people’s lives as their incomes grow. Lifestyle inflation is the tendency to spend more money as you make more money. Many people realize it too late after lifestyle inflation becomes taking place. As they begin to make more money and raise their income levels, they find more excuses to go out and spend more money and get themselves involved in more situations to spend more money.

People will tend to want to buy more cars, bigger house, luxurious vacations, expensive jewelry, etc. all unnecessary material possessions to enhance their personal image that could possibly later come back to hurt them with taxes and other charges that they may not be aware of.

Have you witnessed lifestyle inflation? At times, it isn’t something that always necessarily ends negatively. But I’ve witnessed multiple occurrences where people are unaware of what they are doing with their money and lose track of it in their expenses. That is where problems occur.

There are not too many people out there in this nation of ours that could make more money and handle it modestly. There are many people who are smart enough to hire financial advisors to keep track of their money for them. Lifestyle inflation is a problem for many people and it can mainly be fixed with an attitude change.

References:

Torrieri, M. Making More But Spending More? How To Hack Lifestyle Inflation Creep. Retrieved from http://www.forbes.com/sites/learnvest/2015/07/28/making-more-but-spending-more-how-to-hack-lifestyle-inflation-creep/#3274ec6249ef

[Money image] All4desktop. Retrieved 2/9/16 from http://all4desktop.com/4240695-money.html