Is your spending growing as fast as your income? Quiz detects lifestyle creep and gives your personalised action plan.
Lifestyle inflation happens when spending rises proportionally with income, leaving the savings rate unchanged despite salary growth. The step-up SIP rule solves this: every salary raise, increase your SIP by at least 50% of the raise before it reaches your spending account.
If your savings rate (savings as % of income) has fallen as income grew, lifestyle inflation is active. Another signal: you feel you need your current income level to maintain your lifestyle — you cannot scale back.
The step-up SIP rule: every time you get a raise, increase your SIP by at least 50% of the raise amount before the extra income reaches your spending account. This ensures savings rate grows with income.