You got a raise! Congratulations. Now here's how to not waste it.
What Is Lifestyle Inflation?
When income goes up, spending goes up to match. You earn more but save the same (or less).
- Nicer apartment
- Newer car
- More dining out
- Upgraded subscriptions
The 50% Rule
When you get a raise, save at least 50% of it. Lifestyle can only claim the other 50%.
Example: $500/month raise → $250 to savings, $250 for lifestyle.
Automate Before You Adjust
Increase your 401k contribution or automatic savings transfer immediately. You can't spend what you don't see.
Wait 30 Days
Before any major lifestyle upgrade, wait a month. The excitement fades; the decision gets clearer.
Track Your Spending
Use Pocket Clear to see if spending is creeping up. Monthly reviews catch lifestyle inflation early.
Start Tracking Together
Download Pocket Clear free. Simple expense tracking for couples and expats.