Buzz
When your income grows, it can be tempting to ignore the small expenses. After all, who needs to track every penny when you're making a comfortable living? However, money coach Ashley Feinstein emphasizes that those little purchases can quickly add up without you noticing. She refers to this as the 'CVS Effect.'
LearnVest spoke with Feinstein about the concept of lifestyle inflation:
Ashley Feinstein, a money coach based in New York City, refers to this as the 'CVS/Duane Reade effect.' It’s the habit of thinking small, daily purchases don't need to be tracked when your income increases. Regular sushi lunches? Absolutely! Treats for the kids every time you go shopping? Why not! Feinstein herself, with the generous bonuses she earned as an investment banker, admits that much of her wealth slipped away through seemingly insignificant, impulsive buys.
This behavior is a form of lifestyle inflation. We all aspire to a point where small expenses no longer impact our financial health, but occasionally tracking these little costs can be insightful. This way, you can assess what portion of your budget they consume and decide if you'd rather put that money toward something more valuable—or save it.
Visit their full post for more strategies to tackle lifestyle inflation.
Photo courtesy of Jason Newport.
