• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Cult Of Money

Cult Of Money

Personal finance for the crypto-curious.

  • About
  • Podcast
  • Contact
  • Cryptocurrency
      • How To Start

      • What Is Cryptocurrency And How To Invest?
      • What Is Bitcoin And How Does It Work?
      • What Is Ethereum And How Does It Work?
      • Most Common Crypto And NFT Scams (And How To Avoid Them)
      • Proof Of Work vs. Proof Of Stake vs. Proof Of History
      • How To Invest In Crypto In Your IRA Or 401k
      • Tools + Resources

      • Best Cryptocurrency Exchanges
      • Best Cryptocurrency Wallets
      • Best Crypto Savings Accounts
      • Best Tax Software For Crypto And NFT Traders
      • Reviews

      • Coinbase Review
      • Gemini Review
      • BlockFi Review
      • Binance Review
      • Hodlnaut Review
      • Ledger Wallet Review
  • DeFi
      • How To Start

      • What Is DeFi?
      • What Is Staking Your Crypto?
      • Centralized vs. Decentralized Exchange
      • Tools + Resources

      • Uniswap Review And How Do Decentralized Exchanges Work?
      • Reviews

  • NFT
      • How To Start

      • What Is An NFT?
      • Tools + Resources

      • Most Popular Play-To-Earn Crypto Games
      • Popular Projects

      • What Are VeeFriends And Are They Worth It?
      • Bored Ape Yacht Club NFTs Are Popular (And Expensive)
      • What Is The Sandbox And How Can You Play?
      • Why Visa Bought A CryptoPunk
  • Investing
      • How To Start

      • Tools + Accounts

      • Reviews

  • Personal Finance
      • Banking

      • Best Bitcoin Rewards Checking Accounts
      • Tools + Resources

      • Tax

      • Income Tax Prep Guide
      • Bookkeeping And Accounting For Crypto And NFTs
Personal Finance

How to Avoid the Lifestyle Inflation Creep

By Alexa Mason • November 19, 2013

At The Cult of Money, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners whom we receive compensation from. This doesn’t influence our evaluations or reviews. Our opinions are our own. Learn more here.Advertiser Disclosure

There are thousands of financial products and services out there, and we believe in helping you understand which is best for you, how it works, and will it actually help you achieve your financial goals. We're proud of our content and guidance, and the information we provide is objective, independent, and free.

But we do have to make money to pay our team and keep this website running! Our partners compensate us. CultOfMoney.com has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The Cult of Money does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with).

For more information and a complete list of our advertising partners, please check out our full Advertising Disclosure. CultOfMoney.com strives to keep its information accurate and up to date. The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product's website. All products and services are presented without warranty.

lifestyle inflationI had been wanting a new TV stand for a long time.

My TV was sitting on my mantle and I also had an old school TV stand meant for a box TV rather than a flat screen.

So, this past weekend I headed to Walmart to see what they had. I wasn’t too impressed by the three choices they gave me, but I decided that their $140 particle board TV stand was better than what I had. I seriously contemplated purchasing it until I walked near the whopping 4 checkouts that they had open which had amassed lines of at least 20 shoppers per check out. Screw it. I wasn’t going to wait in line for an hour to buy something I didn’t love and didn’t really need.

The next day, bored, I went down to a Mom and Pop store to see what they had. There it was – a long dresser painted black with cherry drawers. It was real wood and fit my rustic style perfectly. And, the price tag? Only $95! I didn’t hesitate, that dresser would be my new TV stand!

I brought home the dresser. It looked beautiful, but the rest of my furniture looked oddly out of place. I decided I’d stain my tables black to match the new TV stand. But what about the pictures hanging on the wall? They don’t match. I’d just buy new picture frames to hang.

Now that old, over used chair with the springs hanging out really looks out of place. New chair?

You can see where this is going.

I bought a TV stand that I didn’t really need and since it was nicer than every other thing I had in my house the need to buy new things spread.

My weekend turned into a mini shopping spree that amounted to a few hundred dollars. In reality this could have been much worse. I am lucky that I am a tightwad at heart and have some awesome bargain shopping skills.

Moral of the story? Lifestyle inflation spreads like wildfire.

 

Evaluate Your Situation

Should you never redo rooms in your home just to save money? Absolutely not. Money is meant to be saved and spent, it just needs to be done in a responsible manner.

Take me for example. I just switched to self-employment about a month ago. While I do have a decent sized emergency fund and self-employment is going pretty good so far, now is not the time for me to go on mini spending sprees.

I should have thought about my situation a little bit more but I let the living room mini makeover take over my thought process. Once I had one nice thing I wanted everything else to match.

What I should have done was started a savings account to specifically redo the living room instead of spending money that would have been better utilized going toward one of my other goals.

Your situation could be totally different. If you have a stable job, a nice savings account, and other financial plans in place then there’d probably be no problem with allowing yourself money to spend on the things you want rather than need.

However, if you’re in debt, working an unstable job, or working toward a big financial goal letting the lifestyle inflation creep in is a bad idea.

 

Just Say No

Self-discipline breeds self-discipline just like impulse spending breeds more impulse spending. So, the best way to avoid lifestyle inflation? Just say no.

Now that I’ve satisfied my spending cravings and used money I shouldn’t have, I will definitely be keeping the “Just Say No” tactic in mind.

Most of my goals mean so much more to me than having a nice living room does. One of my new goals I am working at is saving money for an investment property. It’s constantly on my mind and unfortunately the money I just spent could have went toward my new goal.

Had I said no to buying a new TV stand I wouldn’t have felt the need to upgrade everything else in my living room. Lifestyle inflation kind of creeps on you like that though. You improve one area and suddenly everything else doesn’t seem quite up to par.

 

Know the Time and Place

Your life is meant to be enjoyed so to say you should never spend money on things you want is just plain silly. There should be a healthy balance of having fun now and saving for the future.

We’re all human. We all slip up now and again. If you find yourself occasionally caving in to a bit of lifestyle inflation there’s no need to beat yourself up. Just brush yourself off and go back to your prior financial plans.

What are your thoughts on lifestyle inflation?

Alexa Mason
Alexa Mason

Alexa Mason is a freelance writer and wanna be internet entrepreneur. She is also a newly single mom to two beautiful little girls. She chronicles her journey as a single mom trying to make it big at www.singlemomsincome.com.

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors’. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone’s responsibility to ensure all posts and/or questions are answered.

Subscribe
Login
Notify of

2 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Kurt @ Money Counselor
9 years ago

I once used a sturdy cardboard box with an attractive textile draped over it for a TV stand for years. Then I got married. 🙂

0
Reply
The Warrior
9 years ago

Mrs Warrior and I can relate big time.

Recently, we bought a new couch. Once in the house, we realized we would have to spend another $500-$1000 on upgrading everything to match. Within 20 minutes, we were putting the new couch back in the truck to return. The couch wasn’t worth it nor the additions we would have to buy to match the new couch.

We ended up just buying a few new pillows and throws to “liven” up the living room. In the end, spending $75 on a few pillows and throws was really the right move.

When we make a financial error, we try to address the issue immediately. It’s kind of like that 2005 pair of pants that just sit in your closet that were supposed to return 8 years ago. If it isn’t addressed right away, it ends up costing us every time.

The Warrior
NetWorthWarrior.com

0
Reply

Primary Sidebar

  • Facebook
  • Instagram
  • Pinterest
  • RSS
  • Twitter
  • YouTube

Editor’s Picks

  • 8 best cryptocurrency exchanges ranked

    8 Best Cryptocurrency Exchanges Ranked For 2023

  • crypto savings accounts

    6 Best Crypto Savings Accounts For 2023

  • Cryptocurrency Bonus Offers

    10 Best Crypto Promotional And Bonus Offers

  • best crypto wallets

    Best Crypto Wallets For 2023 (Software And Hardware Options)

  • Best Portfolio Trackers For Cryptocurrency And Stocks

    6 Best Portfolio Trackers For Cryptocurrency And Stocks

  • best tax software for crypto and NFT traders

    Best Tax Software For Crypto And NFT Traders In 2023

Popular Posts

  • proof of work vs. proof of stake vs. proof of history

    Proof Of Work vs. Proof Of Stake vs. Proof Of History

  • Why I Bought An NFT

    Why I Bought An NFT [And 5 Reasons You Should Too]

  • My Dogecoin Experiment: What I Learned From Investing $2,000 In DOGE

  • common crypto and nft scams

    Most Common Crypto And NFT Scams (And How To Avoid Them)

  • Bookkeeping and Accounting for Crypto and NFTs

    Bookkeeping And Accounting For Crypto And NFTs

  • what is a 51% attack

    What Is A 51% Attack? (And How Is That Game Over For Crypto?)

  • what is staking crypto

    What Is Staking And How Can You Make Money With Your Crypto?

  • what are veefriends

    What Are VeeFriends And Are They Worth It?

  • how to file a complaint against crypto exchanges

    How To File A Complaint Against A Crypto Exchange [Crypto Regulators]

Footer

Pages

  • Best Cryptocurrency Wallets
  • Best Cryptocurrency Exchanges

Categories

  • Cryptocurrency
  • DeFi
  • NFT
  • Personal Finance

About

  • About The Cult Of Money
  • Contact
  • How We Make Money
  • Advertise With Us
  • Facebook
  • Instagram
  • Pinterest
  • RSS
  • Twitter

Copyright © 2023 | Cult of Money | Privacy Policy | Terms of Service

wpDiscuz