Ladies and gentlemen, there is a very dangerous term used in personal finance. It’s called income creep.
Income creep is when your consumption increases with your income.
You get a raise, for instance, and buy a more expensive car.
The reason this can be very dangerous is that one day, you can wake up and find yourself a high earner…but with little to show for it.
Sounds terrible, doesn’t it?
I found something on CNBC that exemplifies what I’m talking about. Check it out here…and please share your thoughts in the comments!
Click the image of the book at left to be taken to its Amazon page. (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)
