The £370/Month Mistake That Taught Me a Big Lesson

Hi,

When I was a medical registrar in Cornwall, I decided I “deserved” an upgrade.
So, I financed an Audi for £370/month.

It felt fine at the time — affordable, even.
But I later realised:

• £370/month = £4,440/year

• Invested instead, that could have doubled in under 10 years.

The car didn’t make me wealthier. It made me more committed to keeping up the long hours.

This is lifestyle inflation in action — the quiet habit of upgrading your life with every pay rise until you’re stuck earning just to maintain it.

1️⃣ The First Pay Rise Rule
Most people know what the 50/30/20 rule is — if not, see my breakdown here: The 50/30/20 Rule.

This isn’t that.

This version only applies when your salary increases — and it flips the priorities:

• 50% → Save or invest (your future self gets the first cut)

• 30% → Upgrade essentials (things that genuinely improve daily life)

• 20% → Guilt-free fun (holidays, gadgets, takeaways — enjoyed without guilt)

That way, every pay bump boosts your long-term wealth and your lifestyle, without letting expenses creep up and swallow the whole raise.

2️⃣ Automate Good Behaviour
Once you’ve decided your First Pay Rise Rule split, set up standing orders or investment transfers for the day you’re paid. That way, the decision happens automatically — and lifestyle inflation never gets the first bite.

3️⃣ Cap Lifestyle Spending
Set a monthly “fun limit” and delay big purchases for 30 days. If you still want it after a month, buy it.

4️⃣ Choose Your Circle Wisely
Spend time with people who talk about assets, not just upgrades. It’s easier to grow when your peer group shares those values.

Your career should fuel your life, not fund a lifestyle that keeps you chained to it.

Build wealth first. Upgrade later.

— Kyaw