What is lifestyle inflation — and is it really that bad?

Increasing your income is one of the best ways to help you reach your financial goals, whether they include paying off your debt, investing, saving for retirement — or all of the above. However, a higher income sometimes invites lifestyle creep, turning those extra dollars into higher spending.At the same time, what’s the point of a higher income that doesn’t improve your quality of life? It’s important to plan for your future, but you should also balance those plans against enjoying your wealth right now. Below, CNBC Select offers advice on how to avoid lifestyle inflation without succumbing to the scarcity mindset — and how to raise your standard of living while staying on track with your long-term goals.What is lifestyle inflation and where does it come from?Lifestyle creep happens when your spending on non-essentials increases, which can sometimes be dangerous to your financial health. Having room in your budget makes you want to fill it — with a pricier living space, a …

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