Some people thinks that money is the only thing that are able to make them look better in the living society, which is not true. They spend their hard-earned cash for expensive gadget for things that they hoped will increase people's respect and opinion about them.
Some examples I found are:
1. There is a model who need to sell her branded stuff to pay her ticket for her holiday to Australia. She offered some of her designer bags for sale...
2. Someone's selling a $2,500 pro lens after using it for only 2 weeks because he needs money...
3. Someone who has a big HDTV, but sometimes have no money to live through the month, and approached a welfare organization for help.
4. Someone whose salary is under $2,000 but he's driving a car to work and his job actually does not need him to be driving. Closer to the end of months, he has no more money even to have lunch, so he buys a cheap packet of bread and eat it for lunch for several days each months.
For basic necessities, we have no choice. For example, we have to buy our flat which cost for example, $250,000, and we have to work the whole life to pay for it. This should be a priority. But a car is considered one of gadgets which actually won't affect your life if you don't have one.
I remember watching a programme in TV which explains a simple guideline to help people to learn some wisdom in using their money.
1. Your housing cost (mortgage or room rental) should not exceed 30% of your total household income, daily needs (Meals, PUB & Phone bills) under 35% of your total income, entertainment (including holidays) 15% of your household income, and the rest (minimal 20%) should go to your savings and emergencies.
2. Don't buy gadgets which cost more than 10% of your total savings you have. For example, if you have $30,000 inside your savings, in one year do not buy more than $3,000 worth of gadgets. (The definition of gadgets is those things "you won't die if you don't have one").
3. Don't use your credit card. Use it only for emergencies, for example when suddenly you need to pay hospital bills.
I know that some people will look forward to burn me alive after reading this post of mine... I don't care, I am sharing the truth.