This is because many individuals forget that essential costs and emergency money must always take precedence hence the tendency to get into debts when something unexpected occurs. It is also reasonable to separate savings and emergency money as the former is about staying parked and the latter is about achieving objectives. We should also invest so that our money does not simply lie idle and of course we should study well before investing in any asset. And as to luxury, I believe that is a very important thing since life has to be enjoyed and with the money, one only fails to use it as an instrument of life but rather an obligation.