Inflation is a common enemy for all investors. It slowly deteriorates the purchasing power of your money. Inflation impacts your daily lifestyle in small doses, making it unnoticeable from one year to the next, but its aftermath at times can be devastating.

Lifestyle, on the other hand, is to be able to spend your life in your own way. Lifestyle is very subjective. It means different things for different people. The role of inflation is more or less the same in all the scenariosbut it doesn’t stop here. With rising income, we also tend to upgrade our expenses. In other words, if income increases by 1X times, our spending might grow 2X times, considering our new lifestyle or social status. This goes on year by year, and without us even knowing it, we get trapped in lifestyle inflation.

In this situation, when it comes to savings, you would hear people say that “I seem to earn more, but I still can not save money”. Well, this is how lifestyle inflation operates. It makes you spend more and more money to achieve a higher standard of living. It can occur anywhere, from everyday expenses (like a cup of coffee) to big purchases (like buying a car). As a result, there is more money, but the problem is still the same. And that is how lifestyle inflation becomes a silent killer of your wealth.


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