Suppose a family member of yours …… let’s call him Mr. ABC, is a poor man in his 50’s earning limited monthly income. He has two school going children and a wife (50’s) to support; what kind of budget should he have?
A) First spend on basic necessities like education, health, food and shelter and then if extra money is left on other things like foreign tours, exotic cars, bungee jumping, scuba diving, circus etc.,.
OR
B) First spend on conspicuous items like eating out, foreign tours, exotic cars, bungee jumping, scuba diving, circus, and then whatever is left on education, health, food and shelter.
OR
C) First borrow money, and spend borrowed + own money on conspicuous items (50%) like eating out, foreign tours, exotic cars, bungee jumping, scuba diving, circus, and service debt (40%) and then whatever is left (10%) on education, health, food and shelter.
We can go into details and find other options; but for simplistic view’s sake; which one of the above three options would you sincerely recommend to Mr. ABC?