9 Ways To Avoid Lifestyle Inflation With A Savings Plan

When we get our first job after college, we begin to earn money, get raises, bonuses, or change jobs for more pay.

We conjure up what we had considered buying before this newfound financial freedom and spend it too quickly. Instead, we should be using this money wisely.

To avoid lifestyle inflation or lifestyle creep, we need to make a reasonable budget when we start our first job and throughout our career.

Monthly Savings Should Be at least 10% Of Your Earnings

To combat the likelihood of increased spending as your income grows, you need to have a financial plan in place.

Allocate at least 10% of your earnings to go savings and allocate to paying off debt, emergencies, retirement accounts, and investments.

#1 Pay Yourself First

Establish an emergency fund for at least six months of necessary expenses such as rent, student loan payments, transportation, utilities, phone, food (even pizza).

#2 Establish An Emergency Fund

Put a budget plan in place once you know your take-home pay, you should think about your fixed and variable expenses. Keep your housing costs from expanding as you grow your family.

#3 Set Up A Budget

#4 Spending Limits

Spend within your means by tracking and limiting purchases. The problem is that the new freedom you have to enjoy more things with your latest paycheck, the more likely you will spend more than you should.

Swipe Up To Read More

Read More

Top 7 Ways To Save Money (During a Time of Inflation)

Living Stingy: 16 Ways To Save Money And Fight Inflation