I saw a video of someone who talked about paying some crazy amount of money in a house that she was renting in a luxury area.
She earns some great money, so yes, I think it's justified that she can equally spend a lot of money too, but she's probably 26 or 27 and has been pretty fortunate to make some great deal of money, but I think she is just probably too young and have never seen enough of life to spend money on renting.
If she saved that money for four months, she could easily get build a comfortable house in an even decent location.
This means that she can stop paying rent, she can also begin to receive rent her self, she can lease the house out, and since she works remotely and just continue building offline business opportunities as the money comes in, so that if the money stops flowing the way it was, she wouldn't have spent all her money renting and have nothing to back on.
But then again, it's easier to say this from a third person's point of view.
I think people who are in great financial position, I mean some people, not all, sometimes they find it difficult to do the right thing with the money they currently have.
I'm saying this as someone who have been in a decent position to do the "right thing" with money but then they don't because of the illusion that money is a constant tap that continuously flows.
With money you never know when it stops flowing, this is why people people safety measures in place. The state of having money is the greatest things that can ever happen to you but it's also a very vulnerable place where you're actually not in touch in reality.
Money makes people really blind to reality and this happens when you're constantly making it, you become overconfident and this might even make you too cocky.
Rich people are cocky, especially people who were once from the trenches, they get money and then begin to spend it irrationally. I follow a lot of celebrity story and you see them building houses with gold toilets, adding diamond and gold to their teeth, implanting expensive previous metals to their butt, and wasting all that money.
A lot of them go broke after making some insane amount of money and you'd virtually think they're set for life, but this is not how money works.
Money humbles people and I understand that people who built structures and massively get rewarded for it should enjoy it, but it's crazy to be making a lot of money way early in life and choose to waste it all in rent just to live in places where billionaires lives.
I'm not saying it's bad to actually live in places where billionaires live, afterall you're aspiring to be one and already making lots of money, but I think a lot of young people make money way early in life and just lose it all.
I think no one should be ashamed though, especially. Being able to manage abundance or having a lot of resources comes with age, maturity, experience and exposure, but one can actually be all these things and still fail terribly to manage their finances.
Speaking from a place of failure
I'm not speaking from the place of a tutor, mentor or teacher, infact I might be the most horrible person to even talk about the discipline of finance with, why?
I've failed as much with money which means this post might just be meaningless and makes no sense, but I'm wiser now and even though my experience may be useless for me, it would actually do a lot of good for someone who is currently young, healthy, making a lot of money but wasting it, wasting the means and resources that comes with it as well.
In reality I think age plays a lot of role, it's harder to see a 40 year old making the financial mistakes of a 29 year old, while older people can be reckless with money too, at least they already have a lot of experience with money and trust me you can never be prudent with money if you've never been a waster yourself...
It's all experience, it's all learning, it's harder for people who have learned their lessons but cannot rise again, because he opportunities are now lost.