Lifestyle inflation is a phenomenon that affects people at all income levels and is the result of a psychological phenomenon called hedonic adaptation, which is the tendency we all have to adapt quickly to changes in our lives and return to a baseline level of happiness, regardless of how many good or bad things may happen. Put in purchasing terms, it means that if we set our sights on a new car because we think that will make us happier in some way, we may get an initial happiness boost from buying it, but pretty soon, we’re no happier with the car than we would have been without it—though
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