Lifestyle Inflation

by Andy Hough on June 17, 2007

Since I’ve started working my expenses have increased greatly. Most of these expenses I think are necessary. Since I was living very meagerly before it was almost impossible for me to not experience some lifestyle inflation. I don’t really consider this to be a bad thing though. For instance I spent almost $900 last month for oral surgery. This was something I had put off for a long time but definitely needed to be done. Also I am now paying for health insurance. Having health insurance is an increase of lifestyle over not having health insurance but one that I consider reasonable.

Other expenses are less clear. I signed up for the SERO plan from Sprint.  This will mean a monthly phone bill of $30 plus tax. This is considerably more than the roughly $10 a month phone bill I had before. I think it is worth it since I can now talk to my family and friends as long as I like without worrying about per-minute charges. It isn’t a necessary expense though and I need to be careful about adding too many similar expenses to my budget. I’m satisfied that my expenses are still reasonable for my income now but I know I need to monitor them to make sure they don’t get unreasonable. For more about lifestyle inflation here are a couple of posts I found informative.

Lifestyle Inflation-When Does It Become a Problem“  from Money,Matter, and More Musings.

How to Protect Yourself from Lifestyle Inflation” from Get Rich Slowly.

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