5. Luxury. When I mean luxury, I do not actually mean it has to be expensive. But I say luxury because there are things that we do not need but still want to have or experience like traveling or eating at a good restaurant. I believe that even though we should be smart in finances this does not mean we have to completely deprive ourselves of enjoyment.
Point five often traps people in worse financial situations because they don't properly understand luxury, which is based on accurate income and expenditure.
Instead, people lose the potential to maximize disciplined steps to achieve a better financial level.
If we refer to a small source of income, traveling and eating at a nice restaurant are not the right steps because we have to spend a large amount of money on the costs.
However, if we realize this potential can cost more money, traveling and eating at cheaper places is much better.
People who are building financial strength will not spend more money on things they consider unproductive, even though we know traveling and eating at fancy places occasionally is necessary.