Spend max, Save min mantra: Many people unduly focus on expenses and payments and make savings the last item on their priority list. No wonder, they are broke at the end of every month, yearning for the next salary.
Easy prey to debt traps and ponzi schemes: With no savings at hand, people easily fall prey to debt traps as they go out of the way to keep their lives afloat. Such people impulsively use a credit card or end up taking a needless loan, yearning for instant gratification in money matters. Nowadays, many people seek shortcuts to earning quick money and invest in ponzi schemes. What they invite in the process is capital erosion that only adds to the financial stress.
Ostentation effect: Many people consciously spend higher only to emulate the lavish lifestyles of the affluent. They fail to understand that by doing so, they end up sacrificing their life goals. After people start earning a decent income, they concentrate on upgrading their lifestyles and not themselves. Just like equipments depreciate and become obsolete, a person's skills too undergo quality degradation. By overlooking this aspect, people force their career to stagnate, thereby closing doors of growth The contentment derived from such ostentation is short-term but the adversities that follow can last a lifetime.