Most middle-class Americans work hard to earn raises and promotions that promise to provide a better standard of living. According to The Simple Dollar, extra income should not always equal extra spending.
Lifestyle inflation happens when a small raise at work translates into a new car. The new income might afford the extra expense, but that also means that there is no extra money moving towards debt repayment or savings. Squash lifestyle inflation by setting goals and setting aside any financial windfalls until there is time to budget it wisely.