Why lifestyle inflation keeps you broke and stressed

Neil Gregori Garen

11 minutes ago

Why lifestyle inflation keeps you broke and stressed

Do you ever feel compelled to buy things you don’t need just to impress others? Are you constantly upgrading your lifestyle because “you deserve it”? Lifestyle inflation, the tendency to spend more as your income grows, is a common pitfall in Filipino culture. It often begins with small upgrades, such as dining at fancier restaurants or purchasing branded clothes. While it is understandable to indulge in things you once aspired to afford, it is important to practice discipline in spending to ensure your money is used wisely. Without moderation, this behavior can spiral into habits that outpace your income, leaving little room for savings or emergencies.

In the Philippines, societal pressures like pakikisama (camaraderie) and social validation often push people into lifestyle inflation. This is especially true for wannabe eyecandies or clout chaser, who prioritize looking trendy, social climbers, who aim to project wealth, people pleasers, who overspend to maintain relationships, and those who justify frequent splurges as “rewards” for their hard work. While these behaviors may bring temporary satisfaction, they often come at the expense of long-term financial stability.

Here are five ways lifestyle inflation negatively impacts Filipinos and why breaking free is crucial:

A never-ending cycle of spending

Lifestyle inflation often becomes a hard-to-break habit once it takes root. Wannabe eyecandies, for example, feel pressured to upgrade their gadgets, wardrobes, and even vehicles to maintain a “cool” or sosyal (classy) image. Similarly, social climbers often go beyond their means to attend lavish events or buy luxury items to keep up with wealthier peers.

Even people who reward themselves excessively with the justification of “Nagtrabaho naman ako, kaya okay lang” (I worked hard, so it’s fine) can fall into this trap. This endless cycle of spending leaves little room for savings or meaningful investments, leading to financial stagnation.

Increased reliance on debt

When expenses exceed income, debt becomes the default solution. Credit cards, loans, and even borrowing from friends are often used to fund appearances or indulgent purchases. For people pleasers, the pressure to say "yes" to family and friends—whether it’s treating them to meals or contributing to celebrations—can lead to recurring debt.

Wannabe eyecandies and social climbers also fall into this trap, borrowing money to sustain their curated image or lifestyle. Over time, the accumulating utang (debt) becomes overwhelming, outweighing any temporary satisfaction gained from spending.

Lack of preparedness for emergencies

Lifestyle inflation often leaves little room for building an emergency fund. Many prioritize maintaining appearances or meeting social expectations, neglecting the need for savings. Wannabe eyecandies and social climbers, for instance, focus heavily on trends and projecting an image, leaving themselves unprepared for unexpected expenses such as medical emergencies or repairs.

Breadwinners face a unique challenge. While helping others is admirable, the assistance they provide often grows alongside their income. Without careful planning, this well-meaning generosity can jeopardize their own financial stability. Balancing the responsibility of supporting loved ones with the need to secure a personal safety net is crucial to avoid falling into financial hardship.

Even those who justify overspending with “Kailangan ko naman ito” (I need this) often overlook the risks of being unprepared. Without savings, minor setbacks can lead to financial strain, and major emergencies can push them into financial ruin. Responsible financial management, even when helping others, is key to long-term stability.

Toxic comparisons and pressure to conform

In Filipino culture, social validation is deeply ingrained, fueling lifestyle inflation. Social media amplifies this pressure, with curated posts that make people feel compelled to keep up with influencers or peers. Wannabe eyecandies are especially vulnerable, as they feel the need to match the “perfect” lives they see online.

People pleasers, influenced by utang na loob (debt of gratitude), often overspend to avoid disappointing others. Similarly, social climbers, who thrive on projecting success, push their finances to the limit to fit in with wealthier circles. These comparisons and pressures drain finances and create emotional stress, leaving people financially unstable and dissatisfied.

Lifestyle inflation leads to abandoned long-term goals

Lifestyle inflation shifts focus from long-term goals, like saving for a house or building a retirement fund, to short-term gratification. Many Filipinos, including those who reward themselves too frequently, prioritize instant pleasures such as travel or trendy gadgets over financial security.

Cultural norms like pakikisama often pressure people pleasers to prioritize social obligations over personal aspirations. Wannabe eyecandies and social climbers, caught up in maintaining appearances, also risk delaying important milestones. This pattern prevents individuals from building a stable and prosperous future.

At the end of the day, lifestyle inflation, especially in the context of Filipino culture, does more harm than good. Whether you identify as a wannabe eyecandy, a social climber, a people pleaser, or someone who frequently rewards themselves, these tendencies can trap you in a cycle of financial instability. By prioritizing long-term goals and resisting societal pressures, you can build a more secure and fulfilling future. True success isn’t about impressing others—it’s about achieving genuine peace and stability.