Parkinson's Law

The bigger our salary, the bigger we will spend. If we spend around RM 3,000 per month before this, we will use mid range car, live in medium price house, eat at the stall and having a vacation within this country only. But after our salary increase because of being promoted, our lifestyle will change from using mid range car to having a better and more expensive car, live in the bigger house, start to eat at the hotels and having a vacation overseas. But your saving did not increase as we increase our cost of life.

Our saving supposed to increase with the increment of our salary. This is what they call Parkinson's Law, the bigger the salary, the bigger your spending.

So how to avoid it? We must resist this Parkinson's Law by having a simple life just as before and try to save 10%-40% from our salary every month.

Can we resist this law? Of course we can because the main problem came from ourself. We must spend wisely and try to be dicipline in managing your personal finance.