Despite significant career growth over 6-7 years, they cannot save VND100 million as rising living standards and fixed luxury costs consume their increased income.

After six years of working in the technology field, Ngoc Anh's income increased from 12 million VND to nearly 45 million VND per month. This income was high enough for her to feel confident that her financial future was stable. But when reviewing her assets at the end of 2024, she was startled to realize she had less than 100 million VND in savings. In the first years at work, she received a low salary, but she once managed to save nearly that same amount.

Anh, 32, said that although she works more and earns higher than before, her account has barely increased significantly. She does not understand where the extra money she earned has been spent.

Looking back at her spending, Ngoc Anh admitted that every time her salary increased, she “rewarded herself” with a lifestyle upgrade. As much as her income rose, her standard of living rose accordingly.

She rented a more upscale apartment, bought the latest iPhone, bought a high-end scooter, joined a premium gym, and kept up the habit of traveling abroad twice a year. Added together, these regular expenses turned her higher income into long-term fixed costs.

Le Trung Kien, 30, working in the finance sector, once fell into a similar spiral. Starting at VND18 million a month after graduation, his income exceeded VND50 million a month after seven years. Instead of accumulating assets, Kien chose to upgrade his life: buying a car on installments, moving into a luxury apartment, and spending frequently on social and business gatherings.

He said that while his monthly income was far higher than before, cost pressures rose accordingly. Car installments, apartment rent, daily living costs, and social expenses absorbed most of the income increase.

Kien said he previously believed that when income increases, the ability to save would also be higher. In reality, his spending level has increased faster than his income, leaving his account with almost no significant improvement.

In 2025, when his bonus, a part of his income, decreased sharply, Kien truly felt the pressure. Fixed expenses still had to be maintained while cash flow decreased, forcing him to withdraw short-term investment to cover costs.

Income increases but assets do not

In personal finance, this phenomenon is called “lifestyle inflation”: when spending increases in parallel with or even exceeds the growth rate of income. This is a common cause why many urban youth, despite having high salaries, fail to accumulate significant assets after many years of work.

Nguyen Manh Cuong, a personal financial consultant, believes that “lifestyle inflation” is not just a spending problem but also relates to social psychology. When income increases, people tend to want to assert a new status. They feel they deserve a better apartment, a better car.

The problem is that these upgrades often turn into long-term financial obligations, reducing saving capacity and making individuals heavily dependent on current income. Without lifestyle control and disciplined accumulation, a high salary delivers only a temporary sense of wealth.

The difference between those who accumulate assets and those who do not lies in how they handle the increased income. Individuals with high net worth often maintain a standard of living lower than their actual financial capacity. Instead of upgrading their lifestyle when their salary increases, they keep their spending structure the same and use the difference to make investment.

According to experts, saving should not depend on “the money left at the end of the month” but must be viewed as a mandatory expense for one’s own future. Immediately upon receiving a salary, workers should set aside a minimum of 20–30 percent of their income into a separate savings or investment account before spending. For the group with an income over 30 million VND per month, this ratio can be raised to 30–40 percent to create faster accumulation momentum.

Experts also recommend applying the principle of automation - setting up fixed monthly transfer orders to a contingency fund or a long-term investment portfolio. When savings are “locked” from the start, spending habits will automatically adjust based on the remaining income. This is considered a simple but effective way to avoid falling into the lifestyle inflation trap and ensure that assets grow in parallel with income.

Nguyen Le