Things you should not impose on yourself

I have narrated the story of one of my family friend in a recent video which I would like to emphasize here too. This is not the only story of lifestyle related inflation which not only deviates a person from his personal finance goals, but devastates the family life. I will let you guys know of similar real life stories in future too in order to educate you against common mistakes people make.

For this particular story, the person I am talking about is a family friend and worked in a reputable multinational for 15 years before resigning and taking up a startup role as country manager 1 year back. The main motive apparently was to do something new with professional life and climb the ladder with new challenges. But apparently, when I talked to him 6 months into his accepting new role, I felt his motivation to join the company was mostly attributed to one perk that he was offered – which is a big SUV the he was promised.

Anyways, he got the SUV after 6 months into his job and everything was good – Now, fast forward today (which is after 1 year of his job) – HE QUIT HIS JOB!

There were multiple reason for quitting. First of all, the company was a startup, and 90% of startup fails as per the stats, but by no mean I am discouraging joining a startup as it gives immense experience, however, joining the startup means a lot of uncertainities along the way which a person should be aware of. The last thing you need to do while joining a startup is inflating your lifestyle expenses. I have talked about this in the video below in details for more reasons, but the terms of getting his car were totally a red flag which he should have avoided as now after 6 months of owning the car, it has became a liability for him and he need to dispose it ASAP otherwise without a job he cannot support paying for its monthly installments. He will loose all the equity invested and it would have been better if the car was not purchased at all and instead he would invest that amount somewhere productive where in case of job loss, he could have sustained himself and family.

In case you have missed the videos on last week, here is the link: