This word is suddenly in vogue or I have suddenly started noticing it. I have come across this word in more than 6 books in the last two months. Initially this word sounded very dangerous to me. Even though I read the meaning, it didn’t register with me in one go.

Remember I have told you multiple times, that you should get the money automatically deducted from your savings bank account and deposited into your investment fund – a Systematic Investment Plan (SIP). This way your brain will not need to make decisions every month. If you try to do this physically yourself, your brain will always show you all the reasons, why this won’t be a good idea because of some fear it throws up.

Since your brain was designed to ensure your survival as its primary objective, you can’t blame it for throwing these curve balls at you to ensure that it save energy for an attack, when it will need to be in full action.

During my recommendation for these SIPs, I also mention that you won’t even realise after some time that the deduction has happened , because you will adapt to spending only from the money that is left over.

This adaption to the new normal which human beings undergo so easily has a term in the English language called “hedonic adaptation”. In simple terms it also means that we quickly get involve into a new inertia, based on our environment very quickly.

This is exactly what happens when you get a pay raise. When you get the letter with your raise, you are euphoric. Then you get your first pay which is at the increased level. The euphoric has turned down to happiness. By the second month your increased salary also gets completely spent like the earlier salary. Its because you adapt to the new salary and your expenses increase to match the new salary.

So use this human tendency to your advantage to move towards your financial independence.

Till next time then.

Carpe Diem!!!