One of the most powerful secrets to saving money is understanding sensory adaption. You will adjust to almost any increase or decrease in your lifestyle after a short amount of time. This means you will always want more.
By understanding this and applying the practices I’ve previously described in lifestyle foundation and lifestyle inflation, you can do a lot for your savings and more importantly, you can invest that money. By understanding sensory adaption, you can see exactly how you can cut back on things without feeling like you’ve lost something, and you can avoid the need to buy new things knowing that need will never be fully satisfied.
Once your senses have been exposed to something for long enough, they adjust. This means that anytime you improve your lifestyle and spend more money, you will eventually find that to be the norm. Similarly though, if you pull back and decrease your spending, for example, not eating out anymore, you will find that eventually to be the norm, and save a lot of money.
I’ve previously written about lifestyle inflation & lifestyle foundation here: https://read.cash/@scottcbusiness/lifestyle-inflation-or-lifestyle-foundation-41121595
To summarize, lifestyle inflation is what most people do, whereas they earn more money they spend more money and end up with little to no savings or investments. While they may be investing in a home, it may be one they could not afford without depending on their income heavily with little to fall back on. The main concern is that in doing this, you can never get ahead, and if you get sick or something bad happens, you could lose everything.
Lifestyle foundation is cutting way down and focusing only on the main things you need to have fulfillment and value in your life and saving the excess to invest with. Build a foundation, and do not upgrade your lifestyle when you acquire more money, save and invest.
How do you save? Do you practice lifestyle inflation or foundation? Let me know what you think about this in the comments below and don’t forget to subscribe!