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!
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