Everyone does this in some way or manner, wasting money happens when you are not careful or observant of the finer details of what you are investing your money into. I suppose for rich people, this is not a problem, but I have witnessed rich people find their backs to the wall in debt, when they don’t budget their wealth well, IRS just make a nice visit on them.
Most may not acknowledge that being rich is actually expensive, especially the lifestyle of the top echelons of society. It’s a unappreciated secret but the people that seem to get rich (or richer) and stay rich are cheapskates they don’t spend on unnecessary things and place a large portion of their money in things that reap valuable returns for them. When you’re young you have to be studious with your finances or you’ll hit ruin in old age.
Saving is as valuable as you can get, cause it is normal for life to hit you with random unexpected expenses here and there (forgotten taxes, school, medical bills). Having a saving for these emergencies can help smooth the usual burn of this. Investment is also a form of saving a bit, but it’s much more risky depending on the type of investment you choose, though there are relatively safe investments that yield relatively low profit such as credit union shares, government issued bonds etc.
Then there is the spending of money. Usually it really comes down to what you actually spend your money not even how much. So let’s say you pay a Kindle Book and Netflix subscription. So do you really need a Netflix and Kindle Book Subscription, worse if you don’t utilize it that much, don’t pay for things just because you might use it at some point. If what the subscription gives is not a utmost need for joy in your life, don’t pay for it.
Many people pay for things as a matter of ritual, you have to go to the gym, you have to drink coffee every morning, you have to buy food at a restaurant every night…actually no you don’t. If you want and you can afford it (boatload of money), then sure go for it but there is usually more resourceful ways to live your life. If your research it, you might find it could suite yourself personally and your pocket better.
Many money budgets have various formulas, but if you want a good formula to start. You can use this: 60 Need-30 Want-10 Saving, this would come from major income if not all. Then from there you can make your divisions based on the needs, wants and savings in your life. You can say life is generally expensive only if you let it, It does not have to be.