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by pritovido 2049 days ago
I studied in Europe's Universities and met and befriend a lot of smart people coming from lower classes families.

The number one problem with them is they being "penny wise, dollar fools". They had been trained all their lives in saving money, so they continue doing it even when it does not makes sense.

For example I had one friend that spent a week trying to save $100. I had to take him apart and give him a talk: Listen, your company is paying for you 9000 euros a month, it is beyond stupid what you are doing. He understood that rationally pretty well, but emotionally he has been trained all his life into this behavior, and it was hard changing habits.

You could also see the opposite behavior. "New rich" people wasting money because they don't know what to do with it.

Educated people inherit lots of knowledge from other educated people like their parents or just the books that you have in your house from the smartest people that have existed in the world.

When I was a kid I just read from books that were in my house because it was normal, all my family did it. So it was a shock to know that most people were so naive about so many topics.

2 comments

> For example I had one friend that spent a week trying to save $100. I had to take him apart and give him a talk: Listen, your company is paying for you 9000 euros a month, it is beyond stupid what you are doing.

I'm making more than 9000 euros a month and can also spend considerable amount of time to avoid spending $100. It's called avoiding lifestyle inflation.

Sure, but you can avoid lifestyle inflation while still knowing your worth. At €9,000 / month (> €50 / hr), 2+ hours spent trying to save €100 just isn't the best use of your time.
That's not really how it works though, it's a monthly salary and you aren't actually paid more if you spend more time doing work. If anything the contrary works: if I've spent an hour taking a dump at work, then I've just been paid 50 euros for taking a shit
I can't get overtime at my work. Which means that, the time beyond the 40 hours per week when I working, is worth $0.
Why would you be bothered by him doing whatever with his own finances? It does not sound like he was harming himself much by trying to save those 100?
We don't know what the 100 was for. If it was for a networking opportunity (dinner out, some white shoe party, etc), it was a poor decision. If it was for a bunch of Hermes ties that look no different from a Thomas Pink, than that was a good decision.
Opportunity cost.

Here, two cartoons of SMBC on this concept:

https://www.smbc-comics.com/comic/2012-12-29

https://www.smbc-comics.com/comic/2014-04-20