A curious inflation story from the past year: the Cost of Living Extremely Well Index—which tracks billionaire spending—rose 5.5% in 2025, roughly twice the inflation most households experienced. Yachts, private jets, designer fashion, and trophy homes—status-heavy purchases—climbed faster than everyday costs.
When spending is tied to visibility and signaling success, prices tend to rise relentlessly. As Psychology of Money author Morgan Housel puts it, “Spending money to show people how much money you have is the fastest way to have less money.”
This kind of pressure shows up at every income level. It’s natural to notice neighbors with bigger homes, newer cars, or constant upgrades and feel the pull to keep pace. But that extra spending doesn’t translate into greater life satisfaction. Meanwhile, what matters most over time—savings, health, skills, and flexibility—can still grow quietly with the right strategy, largely insulated from luxury inflation.
Choosing where not to compete often turns out to be the most powerful financial decision.
Have questions or want to learn more? Let’s talk.
Chris Perme may be reached at 330-527-9301 or cperme@financialguide.com, www.permefinancialgroup. com.
Christopher Perme is a registered representative of and offers securities, investment advisory and financial planning services through MML Investors Services,LLC. Member SIPC. (www.SIPC.org) Supervisory Office: 1956 Carter Road Suite 200, Cleveland, OH 44113. 216- 621-5680. Perme Financial Group is not a subsidiary or affiliate of MML Investors Services, LLC or its affiliated companies.
