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2. What is 'Lifestyle Creep'?

1 Answer

4 votes

Answer:

Lifestyle creep refers to the gradual increase in spending as a person's income rises. As people's income increases, they tend to spend more on discretionary items, such as dining out, vacations, and other luxury purchases, which can increase their expenses to match or exceed their income. This phenomenon can make it difficult for individuals to save money or maintain a budget, leading to financial stress and instability if income unexpectedly decreases or expenses increase.

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User Deepakraut
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