3. Supplying in to 'lifestyle inflation.' Here is the term some finance professionals have coined to explain what takes place when an individual's way of living rises commensurate with his or her cash flow. Therefore if you encounter a 10 per cent boost in your cash flow, congratulations! But resist the urge to immediately improve your paying and charges by ten per cent. Go on and splurge on a specific thing nice in the event you like, but strive to help you save just as much with the additional cash flow as you can, instead of moving into a costlier home or selecting an expensive new car.
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