behaviour
The Spending Treadmill
The rule
When pay goes up and spending quietly follows, you run faster but stay in the same place.
Where it flips
Freezing spending forever can turn into misery, where you never enjoy the reward of years of work. The repair is to spend a little more on things you truly value, while saving most of each raise rather than none of it.
A raise feels great, but spending often creeps up right behind it. A bigger car, a costlier flat, more subscriptions - and soon you feel no richer than before. This is a treadmill: more effort, same spot. The way off is simple but hard. When your pay rises, hold your costs flat and save the difference. That gap is what actually builds your freedom.
A worked example
Arjun's salary jumps from ₹60,000 to ₹90,000. He upgrades his car and rent, and his savings barely move. Aarvi gets the same raise but keeps her old flat and routine, putting the extra ₹30,000 straight into her SIP each month. [illustrative]
How to spot it
- ·Costs rise with every raise
- ·Savings rate stays flat despite more pay
- ·Never feeling richer than before
Scott Rieckens · Playing with FIRE