Peter is my first workmate when i start work in banking industry, he is my good friend, we even tell each other how much our salary. At that time our salary about $360 each month. In my hometown it is count well paid job already.
He told me how he manage his money, he say he use $200 for his daily needs, $100 for emergency fund, and $60 for saving. I say to him that he was a brilliant way to manage his money.
One day he got promote for his job, and his salary also increase. I know he deserve this promotion because he is really hard working. I give congratulation to him, and think he will be rich soon.
Unfortunately his financial trap begin, he change his lifestyle, he start to drive his own car, he start to have luxury watch. He is totally lose his financial wisdom. After his salary increasing, his lifestyle.
Worse, he even can not saving single penny anymore because he leverage his wealth using credit card. His credit card debt even higher than his salary, he even difficult to pay minimum payment.
Actually Peter already know about financial education, when his salary $360 he still can save $60 each month. Unfortunately emotion play the biggest part here, when his salary increase, he feel that he has a spare money.
What happen to my friend Peter is a common case for lot of us. We know saving is good, we know what is financial freedom, but we forget it because excitement feeling to impress other. Keep saving and life below our mean!
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