The raise arrived. Then it became normal
I noticed a pattern in my own life. A promotion felt enormous. A higher salary felt like a new level of security. A new purchase felt exciting. Then, after a while, the new thing became the baseline.
That is the hedonic treadmill
Hedonic adaptation describes the tendency for people to adjust to changes in circumstances. The emotional lift from a new level of consumption can fade as that level becomes ordinary. The result can be a strange feeling: more, but not much more satisfied.
Lifestyle inflation makes the treadmill expensive
The financial problem begins when the new baseline also becomes the new monthly cost. A higher salary can create a higher lifestyle, which creates a higher amount of money required to maintain the lifestyle. The treadmill is now connected to the budget.
Enough is a financial concept too
If every improvement becomes the starting point for the next improvement, the finish line keeps moving. That is why I have become more interested in defining enough. Enough is not giving up ambition. It is deciding which improvements actually change the life you want.
Money works differently when the baseline stops moving
The goal is not to stop enjoying money. It is to stop requiring more money just to feel normal. Once that distinction becomes visible, saving and investing can feel less like deprivation and more like buying future options.
The goal is not to stop enjoying money. It is to stop requiring more money just to feel normal. Once that distinction becomes visible, saving and investing can feel less like deprivation and more like buying future options.
This essay is the deeper story behind NobodyToldMike Episode 14.
Watch the episode →Educational content only. This essay is not financial advice. Financial decisions depend on your circumstances, goals and risk tolerance.