Basically increase in spending after receiving a raise instead of saving the additional income.
Or if monthly loan payment got over & extra cash now not saved but spent on non essential items
Once this takes over, new cash gets spent as fast as — or faster than — it comes in.
It's normal for lifestyle spending to increase when we get a better income. We want to treat yourself after working hard to make that money. Where it becomes problematic is when the increase in lifestyle outpaces the increase in income.
Lifestyle creep can affect everyday earners as much as more affluent households.
Anyone can be convinced that they need to eat out most nights because they can't find the time to cook or that their new job requires them to buy new clothes every now & then.
Signs of lifestyle creep 1. Stagnant Savings. 2. Spending increased in many areas of life - costlier vacations, costlier cars, costlier gadgets 3. No Budgeting 4. You do not feel in control of finances. Living pay cheque to pay cheque
Prevention 1. Make a Budget. 2. Ear Mark money for saving. Not an absolute number, but % of income, which should gradually increase. 3. Lock in Emergency Funds 4. Curtial Consumer Debt
DO NOT STRESS OVER SMALL INDULGENCES AND INFREQUENT SMALL SPLURGES. Y
OU ARE EARNING FOR NOW ALSO. BUT NEED TO SECURE YOUR FUTURE TOO
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@NeerajGambhir says India's MPC may raise rates by as much as 100-150 basis points in the current cycle
Even if we take the repo rate to 5-5.25% over 12 months, the real yield will continue to be neutral to -ve. MPC stance of 100 -150 points would be somewhat accommodative.
10-year bond yield may settle between 7.25% and 7.50% assuming the rate hikes play out as expected
And RBI Support in first half of FY 22 - 23 by bond buying of Rs 1-1.5 lakh crore
Infosys disappoints in Q4, big miss on Rev and margins
$ Rev growth at 0.7%, CC Rev growth at 1.2% (Est 2.5% - 3%)
EBIT margins are at 21.5% vs 23.5% (est at 23.3%)
FY23 guidance
+Ve: CC Rev growth seen at 13-15%
-Ve: EBIT % seen between 21-23%