The Moment: what happened
Deb slid two loan applications across her desk. First one was for a guy with a $65,000 salary, decent credit. Denied.
Second guy: $45,000 salary, slightly worse credit. Approved instantly.
"Why?" I asked.
"Look at the debt."
The first guy had $2,800 in monthly obligations—student loans, credit cards, a boat. His car payment would’ve push his debt-to-income ratio over 50%. No bank would touch him.
Second guy? $200 a month in student loans. That's it.
Deb tapped the first application. "He makes good money," Deb said, "but he's broke."
Same job market. Same opportunities. One guy could jump when something better came along. The other had trapped himself with his own success.
The Moral: why it matters
Lifestyle creep is the slow leak that sinks careers. Get a raise, upgrade the apartment. Hit a bonus, buy the nicer car. Your income grows, but your runway shrinks.
Then an opportunity appears—a startup, a move, a risk worth taking—and you can't pull the trigger. Your fixed costs won't let you.
The guy who makes less but keeps his overhead low? He's mobile. Dangerous. Free.
The Move: what to do about it
I still live below my means. Not because I'm cheap, but because options cost money.
Every dollar I don't lock into overhead is a dollar that lets me say yes when the right thing shows up.
Gut Check: If the right opportunity appeared tomorrow, could you afford to take it?
—John Grover