Ramit Sethi on how lifestyle inflation traps people in debt. You buy a luxury car, then a house and SUV after having a kid, and suddenly your income can't cover the payments. Each purchase feels necessary in the moment, but the costs compound until you're stuck.
Making $70,000 a year buying a Lexus. Yeah. Basically spending 100% of your salary on a car. Then you go, hey, this car is paid off. I know what I'm going to do. I'm going to incur more payment. And then the minute you have a baby, what does every single parent in America do? We need a house and an suv. Why? Because our little infant that can't even move needs to run around. So you go, you buy one, two, three things. Income goes down. Right when he goes to school, one of you takes time back from work, etc. So you have these skyrocketing costs, lower income, heavier cost with the baby. And now what happens? You're trapped.
