GLOSSARY · BUDGETING, SPENDING & SAVING

Lifestyle creep

Spending that rises as income rises, so raises go into a bigger lifestyle instead of savings. Because spending also sets the FIRE number, creep moves the target further away twice: less saved, and more needed.

Also called: lifestyle inflation

COMPUTE IT WITH YOUR NUMBERS

Lifestyle Creep Detector →Has my spending grown faster than income, and what does it cost my FI date?Savings Rate Optimizer →What is my savings rate and how many years to FI at this rate?

LEARN IT PROPERLY

CHAPTER · BUDGETING METHODS & FUNDAMENTALS · FOUNDATIONSSpending on What You Value CHAPTER · BUDGETING METHODS & FUNDAMENTALS · FOUNDATIONSChoosing a Budgeting Method That Fits

RELATED TERMS

Savings rate FIRE number

SOURCES

Consumer Expenditure Surveys. U.S. Bureau of Labor Statistics.

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