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2min chapter
31: The Attack of Lifestyle Inflation
Money Feels
The Sunk Cost Fallacy
Sometimes you just need to let it go. It wasn't a bad purchase because at the time it made you happy and it was something you wanted. But that's an example of the sunk cost fallacy. So why are you wasting time thinking about like, oh, I should just finish this book? Because the only way to combat misery is to create more misery.
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Speaker 2
But that's an example of the sunk cost fallacy. Sometimes you just need to let it go. It wasn't a bad purchaser a waste of money because at the time it made you happy and it was something you wanted. So why are you wasting time thinking about like, oh, I should just finish. I should just grind through and finish this book that's causing me misery.
Speaker 1
Because the only way to combat misery is to create more misery. That
Speaker 2
was me with that bloom, bloom powder, which is
Speaker 3
still in my
Speaker 1
pantry. This is what I mean that I don't recognize
Speaker 2
you anymore. But okay. So one other thing that I read that I thought was pretty interesting was someone and their website's called of dollars and data dot com. And I'm not recommending it by any means. I don't know who this person is. And you just never know in person. Oh, no,
Speaker 1
I've seen their stuff before. Okay. Good data.
Speaker 2
Yeah, the piece the blog post I read was really great. I thought it was a super interesting take on lifestyle inflation. And essentially all that it focused on was savings rate. And it was essentially saying like, as long as you make sure that your savings percent to just covered so that you're still able to hit the financial goals that you want, then the rest of the money, it's perfectly fine to inflate your lifestyle. So like cover your savings right first and then go for it.
Speaker 1
I agree with that.
Speaker 2
I thought that was like a good way to look at things. Yeah. So they had a little chart on there about like depending on what your raise was, how much of it you should save based on what your savings rate is. So if you were saving 10%, it tells you exactly how much of your raise you need to save to just like keep that 10% going.
Speaker 1
Oh, yeah, it says 36%.
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