New Delhi, Jan. 16 -- For India's rising middle class-especially young professionals-a salary hike often brings a disproportionate rise in spending. This phenomenon, known as lifestyle inflation or lifestyle creep, quietly erodes financial security by allowing expenses to rise in lockstep with income, leaving little room for savings or long-term investments.

Lifestyle inflation reflects the tendency to increase discretionary spending as income grows, where 'wants' quickly turn into 'needs' with every raise.

The cycle is familiar: a salary hike creates a sense of success and increased wealth, which is immediately channelled into lifestyle upgrades-moving to a larger apartment, buying a premium car or smartphone on EMI, dining out more fr...