As your income increases, your expenses will decrease.

Question

Quizplus · Accepted Answer

As income increases, it is common for expenses to also increase due to lifestyle inflation, which refers to the tendency for spending to rise as income rises. This can come in the form of upgrading to a larger home, buying a nicer car, dining out more frequently, and other expenses that may not have been affordable before. It is important to be mindful of this and prioritize saving and investing some of the increased income to achieve long-term financial goals.

As Your Income Increases, Your Expenses Will Decrease