Don’t succumb to lifestyle inflation
Another important step in becoming financially comfortable is to increase the amounts you’re saving as your income increases. “Save one-third of every pay raise you get so you don’t succumb to lifestyle inflation,” recommends Ted Jenkin, a certified financial planner.
The earlier you start doing this, the sooner you’ll get used to putting money aside and stop seeing it as a chore. Once you get the hang of it, you’ll turn saving, investing and paying down debts into a habit, to the detriment of spending on things you’ll no longer use in a couple of years. This brings us to our next tip.
See also: How to Prepare Yourself (and Your Finances) for COVID-19 in 2021
