Chapter
The 3% Rule for Lifestyle Inflation
26:54 - 30:25 (03:30)
The 3% rule suggests that you can increase your lifestyle expenses by 3% of what you have invested every year without depleting your savings. This is a good rule for maintaining wealth over time, and avoiding overspending in the present.
Clips
The 3% rule suggests spending only 3% of what's invested every year regardless of how much it makes while avoiding lifestyle inflation.
26:54 - 29:32 (02:38)
Summary
The 3% rule suggests spending only 3% of what's invested every year regardless of how much it makes while avoiding lifestyle inflation. Some high earners had trouble qualifying for a house due to excessive spending despite earning millions a year.
ChapterThe 3% Rule for Lifestyle Inflation
EpisodeBecome A Millionaire With These Habits w/ Graham Stephan EP 1382
PodcastThe School of Greatness
The speaker shares her cautious approach to purchasing and avoiding the trap of lifestyle inflation while still having something to look forward to.
29:32 - 30:25 (00:52)
Summary
The speaker shares her cautious approach to purchasing and avoiding the trap of lifestyle inflation while still having something to look forward to. She notes that she rarely makes emotional purchases and instead sets goals for things she wants to buy and factors them into her budget and investments.