Personal Inflation Rate

This is perhaps a more important measure for comparing if your income increment matches your desired lifestyle.
Example, it really does not help if the overall reported annual inflation rate is 3 percent but you choose to obtain hire purchase for a more luxurious car every year. Your monthly commitment will increase, hence the income increment is quickly negated in this case. Then again, a vehicle is still a liability instead of an asset, we are knew that. Not a very smart money decision in personal finance. You will run into money issues and financial difficulty sooner or later if you persist with this lifestyle.
In a nutshell, personal inflation rate largely depends on the type and amount of your expenditure. Live modestly is my motto. I could have easily upgraded to a smartphone, just for the pleasure of it but no thanks, unless my good old Nokia stupid phone goes kaput, I do not think I need a new handset for now 🙂

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