Quote:
Originally Posted by JamesK
So many players on this board. Not happy with $20k net? Give me a break  |
Those are the ones you'll eventually see crashing down, like certain people on this board whose names I won't mention.
It happens quite often when people suddenly come into money. They fail to distinguish between essentials and extras, and thus end up saving too little. When their business temporarily falls (something that happens with every business), they fail too adjust, maintain the same expenses, and go bankrupt.
Being aware of how much you need to live comfortably versus how much you need to do the things you want is extremely important in finding a balance between extras and savings. There's nothing wrong with buying a few nice sports cars when you can afford it, as long as you balance it with savings and investments.
Especially in this industry, it's a huge problem. Quite a few webmasters behave much like strippers who suddenly discover they have disposable income and immediately start splurging until it's gone. By the time they realize the good times are over, they're neck-deep in debt.