The Vicious Spiral

Every Financial Freedom Seeker's Worst Nightmare

This Sunday we got a puppy. She is the most adorable thing. Sometimes she can be a little naughty which is why I have dubbed her “Little Monster.” 

Here she is... Isn’t she so cute? 

You may be thinking, “Okay, so what does getting a puppy have to do with Financial Freedom?” 

Well you see, it has everything to do with Financial Freedom. A puppy can be the very start of the vicious spiral or as some call it lifestyle inflation. A phenomenon that all financial freedom seekers dread and strive to avoid at all costs. 

Let me first define what a spiral is: Quite literally a spiral is a curve which starts from one point and oscillates around that point as it moves farther away from where it originated. 

Let’s talk figuratively. A spiral is life. It can go up and it can go down and is always revolving around the starting point. What we devout savers fear the most is the downward spiral or what I call the “vicious spiral.” 

This is how it begins: 

1. Graduate College

2. Get a job 

3. Buy fancy clothes for said job

4. Get a raise

5. Buy fancy car for said job with said raise 

6. Rent fancier apartment to impress friends and significant others

7. Get a better job that pays more but requires more hours

8. Get married 

9. Buy a house 

10. Get a puppy 

11. Have kids 

12. Buy a bigger house 

13. Work more hours to get a promotion to pay for said house and kids

14. Take out loans or a second mortgage to pay for kids’ college education 

15. Work until you turn 65 or older 

16. Retire 

17. Enjoy Life aka cross your fingers and pray that your 401K can cover your retirement 

Whewww that was long and quite vicious… 

Each life stage results in more expenses without necessarily an increase in income or wealth. My point here is that the vicious spiral begins as your wants scream louder than your needs. You begin to “live to work” so that you can cover your expensive lifestyle. You lose sight of what is really important: being happy, generating real wealth and achieving Financial Freedom. 

Okay so what does an upward spiral look like on the path to Financial Freedom? 

1. Graduate College or any institution that allows you to make a living

2. Get a job 

3. Save your money and balance your budget 

4. Keep your old used car that your parents gave you for as long as possible, when it dies, buy a used car 

5. Get a raise

6. Invest said raise in real estate or a comparable investment 

7. Live within your means and buy an affordable apartment or house, live with roommates for as long as you can to minimize costs

8. Get another job that pays more money 

9. Invest said money into another venture to diversify your income

10. Get married and buy an affordable house 

11. Get a dog when your budget allows for it 

12. Have kids

13. Remain in your house

14. Invest in more ventures to further diversify your income

15. Work when you want to and retire when you want to

16. Enjoy Life and live confidently knowing you can depend on the multiple income streams you began generating when you first started working

This last scenario depicts the Financial Freedom upward spiral. If you start strong and remain steadfast to your ideals you will achieve your goals. This spiral results in real wealth creation not depletion. You won’t have to work crazy hours or live paycheck to paycheck if you live within your means and diversify your income.

Friends, here is my point: get the puppy but be responsible about it.

A great book to check out that teaches about real wealth generation is: The Millionaire Next Door - you will be surprised who the real millionaires are in this world.

---

*Please note these stages are in no particular order and will vary person to person. Just because you start on a downward spiral does not mean you cannot alter your path*

Please share my post with anyone who would love to see a cute puppy. Thanks!