When The Wife and I normally go away, we keep to the all inclusive resorts out of the country. Why? Well I have been known to drink a few cocktails and we just like to not have to worry about any sort of bill at the end of our trip. However, when we were planning our trip this year, we decided that we wanted to stay in the country and we weren’t going to be partying that much since The Wife is 15 weeks pregnant (go ahead take a look at The Wife’s bump). So we decided to leave it up to our travel agent, who recommended that we check out Sarasota, Florida.
I agreed right away, but was a little hesitant when he said the hotel he was booking for us was The Ritz Carlton; I am definitely not that much of “a baller.” As I spent way more than I was ok with for lunch and cut my drinks to a tenth of what I normally would drink on vacation (especially since I am drinking for two now) – I thought to myself, if I made 3 times the amount that I do now, would I order those other 9 drinks that cost $11/drink? What about if I made 10 times the amount?
What is Lifestyle Inflation?
If I had to define Lifestyle Inflation it would be the increase in spending due directly to the increase of income. There are plenty of posts on how to avoid it, why you should avoid it, or there are those that actually appreciate lifestyle inflation (to a point). Like most things associated with personal finance, I’d find myself in the middle somewhere, liking that I can afford some extras, but careful that I don’t try to keep up with the jonses.
At the same time, I often find myself in front of the beer selection where I have to choose between 6 good beers or 18 alright beers. The 18 usually wins out, which leads me to the real question of this post.
Do Your Tastes Change As you Make More Money?
After the 3rd day of a $60 lunch, The Wife and I decided it was time to get out of the hotel/resort and grab us some normal lunch at a fast food place!
So I ask Does the amount of money you make determine your tastes? If I made $500K would I care about spending another $60 at lunch? Even if I made $500K/yr can’t I still like the cheaper option?
The other night I asked at dinner (yeah I brought this up don’t make fun!) what level of income do you need to rock out a Ferrari? Even if I followed Financial Samurai’s one-tenth rule when it comes to automobiles, if I made $2,500,000 would I buy a $250,000 car, or would I think that is crazy to pay that for a car?!
What say you? Do you think our tastes change when we make more money?