GLOSSARY · BUDGETING, SPENDING & SAVING

Hedonic adaptation

The tendency for people to return to a fairly stable level of happiness after good or bad changes, so that the pleasure of a new purchase or a higher standard of living fades as it becomes normal. It helps explain why spending tends to rise with income without lasting gains in contentment, and why experiences and chosen upgrades often satisfy longer than objects.

Also called: hedonic treadmill
COMPUTE IT WITH YOUR NUMBERS
Lifestyle Creep Detector →Has my spending grown faster than income, and what does it cost my FI date?Savings Rate Optimizer →What is my savings rate and how many years to FI at this rate?
LEARN IT PROPERLY
CHAPTER · EXPENSE TRACKING & AWARENESS · FOUNDATIONSSpending on What Matters to YouCHAPTER · LIFESTYLE DESIGN & INTENTIONAL BUDGETING · DEEP DIVESpending by Your Values
RELATED TERMS
Lifestyle creepSavings rateValues-based spending
SOURCES
All terms →The Library →