Please let me clarify first: anyone who is extremely poor or wealthy is not included in this discussion. Only those who are employed with steady income, some savings and spare time will find this topic useful. I guess most of us are doing fine now but financially we have to face one common problem: how to spend money. This issue leads to many consequences if not handled properly. Here I would not start any broad and subjective agruement. To deliver my message clearly, I am using some specific examples to elaborate. For example, a lot of peole complain that their income is not enough to cover their daily expenses so they can't save much money while...they spend seven bucks on a cup of coffee almost every morning, throw a hundred dollars on some gym membership cards but never show up training, have dinner with some random girl in an expensive restaurant, buy drinks in bars and waste hundreds of dollars... The list goes on and on. If you live this kind of lifestyle and at the end of months, you are running out of money or can't pay the mortgages, whose fault is this ? I can not provide any statisitics but I am sure that many people have fallen in the trap and can not get out. I hope you are not one of them.
This goes to show us how financial intelligence and discipline is very important, because without it we'll be complaining at the end of every month. The best approach is to create a budget on how to spend a fixed income and have discipline to stick to it. Without a budget the person might be spending on unnecessary things, which before payday he'll probably be going into dept. And when income fixed is not even enough for the individual in a month, how will he be able to repay loan, and chances are that the person will keep increasing dept. So financial education is very important for any middle income earner that wants to manage their income well, without running into avoidable depbts.
Making budget for the month's expenditure doesn't mean that ostentatious spendings should be included, people in middle class category can deny themselves of certain luxuries in order not to run into dept that'll become a problem for the them. Although an income earner or someone that makes small income can save towards giving themselves treats once in a while, because all work and no enjoyment is not good for the body. So financial intelligence is the key, backed by discipline to achieving it.