Good Managerial Finance Decisions

Financial News
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Financial News
“Wait a Minute. How Can They Afford That When I Can’t?” by Alina Tugend depicts real-life lessons about proper financial management. The author shows how managerial finance decisions can make an individual wealthy or poor. In some cases, individuals might appear as if they are leading happy and extravagant lives, but they are sinking in debt. The financial decisions that a person makes now have a significant influence on one’s future. Therefore, individuals should not undermine themselves since they see others driving luxurious cars. The most significant thing is to learn how to manage the little money that one is earning. For this reason, proper financial decisions can enable a person to create wealth and avoid sinking in debts, particularly by buying things that are not necessary for life.
Tugend gave a scenario to portray that not everyone who lives or buys luxurious products is wealthy. At some point in life, she was surprised and wondered how her neighbors afforded high-end cars and to go to luxurious vacations. Tugend and her husband thought they were making poor financial decisions since they could not afford such expensive things (Tugend, 2019). The two were earning and saved their money separately. However, the sweet life of their neighbors did not last for an extended period since they were living on debt. They even sold their house and rented an apartment since they could not maintain their lifestyle as debt increased continually. The author affirms that everyone who is spending more on luxurious things with a lower income has a hidden wealth or debt.
The article by Tugend relates to class materials in that it shows how individuals’ financial decisions can enable them to create wealth or sink in debt. The course materials emphasize borrowing money to invest and not buying luxurious things such as cars, some of which a person can live comfortably even without. The most signific...