Understanding Lifestyle Creep

Lifestyle creep refers to the phenomenon where as people earn more money, they tend to spend more money. It often goes unnoticed until suddenly the credit card bill exceeds expectations. This is more likely to happen when people have a larger budget and don't scrutinize their expenses as closely. Factors like COVID-19, moving to a new apartment, and inflation contribute to lifestyle creep, where expenses match income without much saving or investing.