# Lifestyle Inflation

*Everyday Money — Finicade finance glossary*

Lifestyle inflation is the reflex of spending more the moment you earn more, so a raise leaves your savings rate unchanged. It's the single most common reason high earners stay broke: each upgrade — the bigger apartment, the newer car, the better gym — becomes the new baseline you can no longer cut. The countermeasure is mechanical rather than moral: automatically route a fixed share of every raise to savings before it reaches your checking account, and let lifestyle rise with what's left.

**Also known as:** lifestyle creep

**Related terms:** [Savings Rate](https://finicade.com/glossary/savings-rate), [Budget](https://finicade.com/glossary/budget), [Expenses](https://finicade.com/glossary/expenses), [Needs vs Wants](https://finicade.com/glossary/needs-vs-wants)

Source: https://finicade.com/glossary/lifestyle-inflation