Not sure why this won't still work in theory. 100% YoY increase: Salary Year 1: $100 - you are allowed to go $60 into debt Salary Year 2: $200 - you are allow

Not sure why this won't still work in theory. 100% YoY increase: Salary Year 1: $100 - you are allowed to go $60 into debt Salary Year 2: $200 - you are allowed a further $120 Salary Year 3: $400 - you are allowed a further $240 Salary Year 4: $800 - your total debts are still around half a year's salary, which is only modestly troubling - banks would most likely be happy to service your debt at a competitive rate. If you recognise your period of fast increasing salary is over, you are now advised to save $320 - which pays off much of your debt. In practice, there are some other problems which you partially recognise - depending only on salary doesn't give you a diverse portfolio of investment; salary is more likely to suffer an unexpected shock than business income; expenses are difficult to reduce.