1389: Step Off The Dang Treadmill by Craig Stephens of Retire Before Dad on Slowing Down Lifestyle Creep
It's a minimalist monday. Edition of optimal finance daily episode. Thirteen eighty nine. Step off the treadmill by craig stevens of retire before dad dot com. And i'm your host and personal finance enthusiast diana mariam. This is the show where. I read to you from the best personal finance blogs on the web with the author's permission of course and have you heard of our other podcasts yet. Optimal living dailey covers minimalism personal development and productivity. So if you like this show you'll definitely like that one too just search for optimal living daily wherever you're hearing the show to find it along with our other shows but for now let's get right to today's post as we optimize your life. Deb often treadmill by craig. Stevens of retire before dad dot com the financial firm. Ubs publishes a quarterly report called investor. Watch that analyzes investor behavior one of these reports has remained on my mind since publication and twenty fifteen. The report is called. When is enough enough. Why the wealthy can't get off the treadmill. The premise is that more than half fifty. Two percent of millionare's surveyed further report feeling. They're stuck on a treadmill and can't get off without giving up their family's lifestyle ambition keeping up with the joneses and the desire to send their kids to the best colleges all add to the anxiety sixty three percent of survey respondents said that one major setback like job loss or market crash would significantly impact their lifestyle when success and income increases people tend to increase their spending and consumption. This is often referred to as lifestyle creep in money blogging parlance fancier new car. More frequent visits to the city's top restaurants a bigger house country club membership diamond necklace etc avoiding lifestyle. Creep is one of the most important factors when chasing financial independence. Do you feel like you're on a treadmill. Sometimes i feel as though were on a treadmill more accurately when we moved to the suburbs to start a family. it's like we sort of inadvertently stumbled onto it. But we didn't realize it until we were on a level five incline living on one income mortgage preschool tuition. The mini van broken appliances saving for college summer camps sports teams in the like drain. Our bank account with regularity. Most other times. I know the well let path is clear. Right in front of me. Were taking productive. Strides every day up the steep past to financial independence after navigating all the above expenses and more. We still managed to save about forty to fifty percent of our income every month after we change up. That doesn't come easy. We make sacrifices every day knowing about financial independence and being financially literate our important life skills. I probably take for granted for many not knowing the basics about finance is a recipe for perpetual money mediocrity and mediocrity with money is normal. The haddan ick treadmill. Not mentioned in the article is the a treadmill also called haddan ick adaptation. The wikipedia entry defines it succinctly quote the observed tendency of humans to quickly return to a relatively stable level of happiness despite major positive or negative events or life changes. According to this theory. A person makes more money expectations and desires rise in tandem which results in no permanent gain in happiness and quote. Life's ups and downs will lift and punch your spirit. But most humans remain at a constant level of happiness so even his mom received promotion after promotion and eventually becomes an svp. She's likely no happier than when she was a lowly associate. Her family has a pair of luxury. European cars now and the kids love the new private school. Her two carat diamond stunned earrings are beautiful. And the houses finally spacious enough to contain all the stuff. They've accumulated over the past decade but mom is still working and it all goes away if she stops maybe she loves the work. The ups survey also asked the same millionaires. What they would do differently if they only had five more years to live. Eighty seven percent said they would change things which presumably means only thirteen percent would continue to work. Here's what they do differently. Sixty four percents that they travel more sixty one percent said they'd spend more time with family. Forty four percent said they retire and my favorite thirty seven per cent said they'd be a better person. Twenty eight percent said they'd enjoy the finer things in life. Thirty six percent said they would spend more time on passions and three percent said they would work harder to provide for my family. perhaps shorten lifespan. Directs our attention to what is most important. The haddan treadmill theory tells us that we should be pursuing what makes us happy which is a different end. Goal than money and success pursue. What makes you happy writing about money and investing on the internet. Doesn't make me an expert. I'm far from perfect. Having made plenty of financial mistakes over the years and probably making some in the present. I feel conflicted about needs versus wants and the desire for nicer stuff a bigger home and more frequent meals at the top restaurants in dc. I'm not as frugal as i once was. I want a decent lunch today. So i'm going to spend ten dollars instead of eating a two dollar. Lean cuisine and a fiber one bar that gives me gas but even with an occasional splurge on lunch or a decent vacation we can still achieve our financial independence and early retirement. Goals were on the right path despite having more mouths to feed and living in the suburbs surrounded by the temptations of luxury cars. Private education's for our kids and world-class dining as we pursue early retirement. The key is to stay away from the same treadmill millionaires find themselves stuck on by keeping our lifestyle in check and investing spare cash instead of spending it become the millionaire next door if you will then eliminate what makes us unhappy such as fulltime work commuting toxic and pursue what makes us ultra happy and do more of that for the millionaires in the survey. It's never too late but the deeper entrenched in their lifestyle the greater the pressure to maintain the high standard of living. They have established for their families whom they value above all else without a drastic lifestyle. Change the treadmill millionaires will end up working to age sixty five and beyond step off the treadmill quote. This secret of happiness you see is not found in seeking more but in developing the capacity to enjoy less socrates. Maybe you're not a millionaire yet but if you've read enough about investing in early retirement and your persistent there's a good chance you will be someday. Inflation should help to to get there. You'll need to earn more. Spend less and invest the surplus. I call this the tri force of wealth for all us zelda fans out there building wealth is simple but not easy. Beware of the treadmill especially in the critical stages of your life such as marriage having kids and in your peak earning years. It's sneaks up on you disguised as the american dream if one day you wake up and realize you're stuck step off step off spectacularly by moving selling your cars and dropping the golf club membership right away. A total one eighty or step off more gradually start by identifying the pressure. Points in your life that make you unhappy and eliminate them as soon as possible. Then instead instead of spending your hard earned money on short-term highs and five star hotels keep your money and invest it picture what would make you supremely happy and five or ten years and re-director attention toward that make sacrifices today to achieve that vision you just listen to the post titled step off the treadmill by craig stevens of retire before dad dot com. Thanks to anger for hosting this. Podcast anchor is the easiest way to make a podcast. The trigger podcast for you so can be heard everywhere. Spotify apple podcasts. Google podcasts and many more you can easily make money from your podcast to with no minimum listenership. Anger gives you everything you need in one place for free which you can use right from your phone or computer creation tools. Allow you to record edit your podcast. So it sounds great. Download the anchor app or go to anchor dot. Fm to get started. This article reminded me of one of my favorite quotes from the mr money moustache blog. He states that luxury is a weakness. I take that one step further and say that it's not enough to not by all those fancy luxuries to really avoid lifestyle creep. You need to train your brain to not desire those things. It's a difficult task. Were conditioned from a very early age to be good consumers so it does take a deep mindset shift to rebel against that reading articles like this and reminding myself that the happiness fancy stuff promises is an illusion helps me keep my consumers brainwashing and check research has shown that after enough income to meet basic human needs and some luxuries there are diminishing returns to having more. I've found in my own life. Happiness comes from relationships and surrounding myself with people that inspire me. It comes from creative expression resourcefulness and flexibility around. How i use my time. It comes from prioritizing self care and personal development. I now see my satisfaction with having a needing less in terms of luxuries as a superpower. And i'll point out that it is so much easier to pare back the lifestyle creep when it's a choice versus if you lose your source of income becomes a necessity. There is a sense of freedom and confidence that comes from a minimalist lifestyle. I feel ready for whatever life throws at me. And that's a wrap for another monday. Show have a great rest of your day and start your week. And i'll be back tomorrow. Where your optimal life awaits.