Lifestyle inflation is when someone increases their spending as their income rises. It's natural to want to enjoy the fruits of your labor, but it's important to be mindful of how this can impact your financial future. As you earn more, it can be tempting to upgrade your lifestyle by buying a bigger house, a nicer car, or dining out more frequently. While there's nothing wrong with treating yourself, it's crucial to strike a balance between enjoying the present and saving for the future. Without careful planning, lifestyle inflation can lead to financial stress and make it harder to reach long-term goals like retirement or financial security.