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The following post is by MPFJ staff writer, Kelly Gurnett. Kelly runs the blog Cordelia Calls It Quits, where she documents her attempts to rid her life of the things that don’t matter and focus more on the things that do. You can also follow her on Twitter and Facebook.
Have you ever wondered why, no matter what you manage to accomplish financially, you can never seem to “get ahead”?
You could get a raise, pay down a debt, receive a sudden windfall, but it never seems to make a difference in the grand scheme of things. No matter how much better off you are than you were a few years ago, it never feels like you’re better off. You keep finding yourself waiting for that hazy time in the future when you finally feel like you’ve “made it.”
Well, I’ve got some unfortunate news for you: you’re never going to “make it,” at least not as long as you define “making it” as reaching some perfect point when you have more—more money, more luxury, more stuff that will finally make you perfectly satisfied.
Because it’s that “more” mentality that will keep you from ever reaching that point. It’s a mentality leads to a phenomenon known as lifestyle inflation, and many of your friends and neighbors have succumbed to it.
Forget Keeping Up with the Joneses
Lifestyle inflation is more like keeping up with yourself—with the idea in your head of a future self who will be wealthier, savvier, cooler, than the you of today is. You always feel like there’s more out there, and you know that if you can just get it, then you’ll be happy. So as soon as you find yourself with a little extra money in hand, you’re off like a shot chasing that goal.
The thing is, like the proverbial carrot on a string, that goal will always be one step ahead of you. Because no matter how much your standard of living improves, it can always be better. And constantly using all your resources to chase that never-ending goal will only make you less happy in the long run.
When you were in college, scraping by on Raman noodles and stale cafeteria coffee, getting together a few extra bucks to see a concert feels like a real treat, even if you have to cram into a junker car with six of your friends to get there. Then you become a member of the full-time working class, and suddenly a shoestring concert seems like nothing. Now you can afford concerts, concert merchandise, occasional road trips to out-of-town concerts, etc…You’re bringing in real money now, and you can start living a little. So you do.
Except the thrill of a snazzier concert experience fades after a while, and then you’re left envying your friends who are starting to go on week long vacations to sandy, sun-dipped locales. Some day, you think, when I get that promotion, I’m booking my own Caribbean vacation! And why not? You’ll have worked hard to get to that point, so why shouldn’t you enjoy the fruits of your labor?
The problem is that, as your standard of living increases with each pay increase, your sense of enjoyment fails to increase along with it. You might feel momentarily happier as you adjust to your new, cushier lifestyle, but it won’t last. New things and new experiences get tired quickly, and eventually you’re back to barely getting the bills paid, staring at your sad savings account, and wondering how anyone ever manages to put aside for retirement.
Because that’s the other problem with lifestyle inflation: not only does it ultimately fail to make you happy; it also keeps you from ever reaching a place of financial security and freedom. Because when every spare dollar is being put towards chasing that end of the rainbow, none of it is being put aside for the future.
What’s a Dreamer to Do?
The temptation to live larger as your paycheck grows is only natural. Our culture is saturated with images of celebrities and strangers on TV commercials living the high life and loving the heck out of it, so we can’t help but feel like if we can only get to where they are, we’ll be truly happy, too.
But if you really want to achieve happiness with your money, the secret is in finding a sense of balance.
By all means, enjoy an extra dinner out or take that sunny vacation if you can afford it now. You have worked hard for your money, and you certainly deserve to enjoy it. But at the same time, make sure you’re also putting aside a healthy amount towards an emergency fund, your kids’ education, and whatever other savings goals you have.
By using your money smartly, you can still enjoy the occasional live-it-up splurge without sacrificing your future financial happiness and security. Plus, if you treat yourself strategically instead of maxing out your lifestyle every time you get a raise, those treats are more likely to leave you feeling satisfied, pampered, and truly “rich.”
How about you all? Have you been tempted by lifestyle inflation?
How have you dealt with it?
Share your experiences by commenting below!
***Photo courtesy of http://www.flickr.com/photos/94328679@N03/8585451509/
