🧠 What is Lifestyle Inflation?
Lifestyle inflation happens when your expenses rise with your income.
You earn more, so you:
Rent a posher flat
Buy the new iPhone
Subscribe to 7 OTTs
Travel every long weekend
It feels good... for a while. But without a check, it turns into a financial trap.
🚨 The Warning Signs of Lifestyle Inflation
💳 Credit card bills rising despite higher salary
🛍️ Impulse buys becoming weekly habits
📉 Savings % staying flat or declining
🏦 Loan EMIs increasing due to upgrades, not emergencies
You’re not broke — but you’re not building wealth either.
🔍 Upgrades vs Liabilities: The Thin Line
| Upgrade | Liability in Disguise |
|---|---|
| Switching to a better laptop for work | Buying a luxury phone just for the brand |
| Investing in fitness or skill course | Joining a luxury gym you don’t use |
| Renting closer to the office | Moving into a designer flat just for “vibe” |
| Vizzve EMI for essential appliance | EMI for 3rd pair of wireless earbuds |
💡 How to Control Lifestyle Inflation (Without Feeling Poor)
✅ 1. Maintain a Fixed % of Savings
Even with a raise, keep 30-40% of income for savings/investments.
✅ 2. Pause Before Every “Upgrade”
Ask: “Is this a true upgrade or just emotional FOMO?”
✅ 3. Cap Your ‘Luxury Spending’
Fix a monthly cap (₹3K–₹5K) for non-essential spending.
✅ 4. Review Expenses Quarterly
Like checking your weight or BP — review your finances every 3 months.
✅ 5. Use EMI Smartly
Tools like Vizzve help you upgrade smartly — for essentials, not indulgences.
💳 How Vizzve Supports Smarter Upgrades
With Vizzve, you can:
Upgrade what matters (laptop, furniture, travel)
Avoid large upfront costs
Keep your budget intact with flexible EMI options
Upgrade your life — but let it match your financial goals, not challenge them.
FAQs
Q1. Is lifestyle inflation always bad?
No. Controlled upgrades can improve life. It's only harmful when unchecked.
Q2. How do I know if an upgrade is worth it?
If it improves productivity, health, or peace — it’s likely worth it. If it just looks good on Instagram — think twice.
Q3. Can I take loans during lifestyle inflation?
Yes, if you're borrowing strategically for value, not vanity. Vizzve helps with responsible borrowing.
Published on :July 28th
Published by : Kaushik
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