Thursday, May 5, 2005

Who is richer?

ABC, who gets something like Rs 30,000, but can hardly save anything since he is prodigal, has extravagent habits. For him all the "wants" are also "needs", and luxury is a daily necessity.

Or, XYZ who gets Rs 15,000; but is more prudent about his spending. This guy is not a miser, and does indulge in luxury, but not on a daily basis. He makes a distinction between "what he needs" and "what he wants." He saves a lot, and has money in reserve, unlike ABC.

Aren't some rich people really poor; and some poor people really rich?

3 comments:

  1. Some people save 10k while they earn 20k. And when they get to earn 30k, still they save 10k!!

    So, do we say - consistent savings or consistent spendings? :)

    ReplyDelete
  2. Yes, ultimately it is your savings which decide how rich or poor you are no matter how much you earn.

    Also we tend to splurge intially when we start earning . But then most of us get down to saving as the novelty wears off and the bank account gets anemic.

    ReplyDelete
  3. Look at all the Hollywood celebrities who declare bankruptcy. And especially the music industry here in the States. They earn millions off of one cd, and then never make another hit.

    Or spend all their money on legal fees for doing something totally irresponsible.

    ReplyDelete

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