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Lifestyle Inflation Explained: How Earning More Can Still Leave You With Less Getting a raise is supposed to make life easier. You earn more, have more choices and can afford things that were previously out of reach. But there is a financial problem that can quietly appear as income grows: lifestyle inflation . Lifestyle inflation, sometimes called lifestyle creep , happens when spending increases as income increases. A higher income can improve your quality of life, but if most or all of the additional income is absorbed by new expenses, your financial position may not improve as much as expected. The problem is not spending money. The problem is allowing your spending to automatically rise every time your income rises. The Consumer Financial Protection Bureau specifically discusses lifestyle creep as a situation where people begin spending more as their income increases. [oai_citation:0‡Consumer Financial Protection Bureau](https://www.consumerfinance.gov/paying-for-coll...