Keep more of your raise: avoid lifestyle inflation: test your skills
Spending tends to rise to meet income. Decide where a raise goes before it arrives. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Recognise lifestyle creep
- Split a raise before it arrives
- Automate the saved portion
- Practice
1. Lifestyle inflation is…
- Practice
2. When should you decide how to split a raise?
- Practice
3. Is upgrading your lifestyle always bad?
- Key idea
4. Which statement best explains "You adapt quickly"?
- Key idea
5. Which statement best explains "Decide before the money lands"?
- Key idea
6. Which statement best explains "One deliberate upgrade"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
A $4,800 yearly after-tax raise. You save 60%. How much per month goes to savings?
Show the answer
$240
$4,800 × 0.6 = $2,880 a year. ÷ 12 = $240.
Write down what percentage of your next raise you will save, and set the reminder to change your transfer.
More tests in this bootcamp
- How to budget with the 50/30/20 rule
- How to build a zero-based budget in simple steps
- Sort your spending: fixed costs, flexible costs and choices
- Let your receipts reveal where your money goes
- Plan ahead with sinking funds
- Build a budget when your income changes
- Pause before you buy: manage impulse spending
- Keep more of your raise: avoid lifestyle inflation
- Make a monthly money check-in work for you
- Read your utility bill and find ways to use less
- Final exam: Budgeting and cash flow