There’s the inflation we can’t control, and then there’s the kind we can control, says one financial coach.
“Lifestyle inflation is increasing your spending at the rate at which your income increases… if it remains unchecked, lifestyle inflation can prevent you from reaching your financial goals. It keeps you in the cycle, unable to pursue dreams because you need to continue to work just to pay your bills,” writesYou Only Live Once: The roadmap to financial wellness and a purposeful life.”articles
That said, detractors could argue that it is something of an oversimplification to blame the ubiquity of hand-to-mouth living among the employed, on personal choice in the form of preventable lifestyle inflation, and might ratherof economic systems that benefit from an underpaid labour force to produce these very items that result in increased “unnecessary” spending.
“If you were earning R10,000 and you were living just fine and able to cover your expenses, and then suddenly you’re earning R15,000, rather carry on living within your R10,000 budget and save the difference,” says Merson-Davies. “Being rich is not the visual – it is in your savings account, in your bank account… it’s what is going to pay for the day when you are no longer earning a salary,” says Merson-Davies.
Merson-Davies asks, “Do you need to upgrade to the latest top-of-the-range phone? Did you do all the things you thought you were going to do with the previous expensive phone upgrade? Understandably, the world and language around money can be quite intimidating, and Merson-Davies emphasises that, as with other life skills, it is important to approach this as a journey of learning.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How to watch Mamelodi Sundowns LIVE on television!Mamelodi Sundowns and Richards Bay face-off in a blockbuster DStv Premiership clash. Here's how to watch the match live on TV.
Read more »
SNAPS | Trevor Noah and his gang live it up in Costa Rica'We are living for this consistent friendship.'
Read more »