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Lifestyle inflation check

When income grows but discretionary spending grows faster, you're treadmilling. This check compares your last 12 months of income, lifestyle costs and savings to flag the gap.

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What this calculator is useful for

When income grows but discretionary spending grows faster, you're treadmilling. This check compares your last 12 months of income, lifestyle costs and savings to flag the gap.

Use it after a raise, bonus or job change to see whether spending rose faster than income. Lifestyle inflation is easiest to correct while the new income still feels visible.

How to read the result

The result compares income, discretionary spending and saving before and after the change. A higher lifestyle is not wrong, but it should be a deliberate trade-off rather than automatic drift.

What to check next

Decide where future increases go before they arrive. Directing part of each raise to savings, debt payoff or a shared goal keeps progress from disappearing into subscriptions and upgrades.

Plain-language notes

Use this section if the finance words on the page are new to you. The calculator is meant to support a decision, not to reward perfect terminology.

  • Inflation: prices rising over time. If income or savings do not keep up, the same money buys less.

  • Budget category: a named bucket such as housing, food, transport, or savings. Clear buckets make leaks easier to spot.

What to compare

Compare at least two scenarios before trusting the first answer. A useful result should tell you what changes if income, costs, rates, or timing move.

Frequently asked questions

What is lifestyle inflation?
The pattern where each pay rise quietly funds a new subscription, a nicer dinner habit, a slightly bigger flat — and net savings barely change. Common, gradual, and only visible if you measure.
How big a creep is normal?
If discretionary spending grows at the same rate as income, you're roughly even. If it grows much faster than income (creep score > 5%), savings rate is sliding.
What do I do about it?
Lock new income into automatic savings before it lands in checking. Increase your standing order with each raise so the marginal euro saves itself.

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