← All readings

Idea · From the Margen catalogue

Earning more and staying the same

You get a 200 € raise and, three months later, you're scraping to the end of the month again. You did nothing wrong on purpose: a slightly nicer flat, dinners out a little more often, a slightly bigger treat. That's lifestyle inflation: spending rises on its own until it catches up with income.

It's why earning more enriches almost no one on its own. If every pay bump translates entirely into standard of living, your capacity to save is the same on 1,400 € as on 2,400 €: zero. The scenery changes, not the film.

The antidote is fine plumbing: decide where each raise goes before you get used to it. For example, half of every increase goes straight into automatic savings. You live better with each raise, and so does your future.