How Lifestyle Deflation Can Ensure Your Financial Success
No matter who you are, if you’re employed you’ve dreamed about your next promotion or bonus. It’s not necessarily the additional responsibilities or the hard work that come along with these distinguishments but the promise of more money. Our minds can’t help but to wander as they fantasize about the house, the new car, the vacation, or even the shopping spree of your dreams. These goals and dreams are what set you up for a perpetual cycle of lifestyle inflation where your spending increases along with the with your additional income. This cycle means that, no matter how much more money you make, you always seem to be living paycheck to paycheck.
To ensure that you don’t become a victim of lifestyle inflation, you need to take control over your expenses. Even if your income increases, your objective should be to reduce the money you spend each month as much as possible. This increase in income coupled with a decrease in expenses is the recipe to saving money and investing it versus spending it on consumable goods. Herein lies the keys to your financial freedom.
Here are three ways lifestyle deflation makes your life better:
1.Money you save now can contribute towards your future financial success. For example, retirement isn’t as easy of an accomplishment as it sounds. You will need to save a considerable amount of money to live comfortably in retirement. Lifestyle deflation can provide a great assistance to you with that. It will mean that, at the end of the month, you are able to save and invest more money into your retirement account. Then, you will be surprised at how much quicker you are able to reach your retirement target.
2.Any person who is trying to save money should consider how lifestyle deflation can help them to obtain their goals. That’s because the money saved from lifestyle deflation helps you to create an emergency fund. For example, if you have a dental emergency or any other out-of-pocket healthcare concern, you can simply pay from your savings fund. You will not have to sell things that you own, ask family to borrow money, or take out a loan. You will have plenty of money saved from which you can draw.
3.Today, many people find that just one job does not cover all of their bills. Whether that means the…