30,000 US Dollars Folly Law

On the long journey of financial management and investment, have you ever heard of the rather amusing "30,000 US Dollars Folly Law"? A well-known blogger once summed it up like this: When people's savings first reach 30,000 US dollars, it's as if their IQ suddenly drops, and they are extremely prone to falling into the traps of impulsive consumption and blind investment. They buy cars and houses, open stores, and no matter how earnestly others try to dissuade them, it's all in vain. In the field of economics, this is known as the "30,000 US Dollars Folly Law." And I, unfortunately, am a typical victim of this law. Looking back, all I feel is regret.

The first 30,000 US dollars I painstakingly saved in my life was impulsively spent on buying a car. At that time, I was filled with joy, thinking that I had obtained both the convenience of travel and the quality of life. However, I never expected that the car would be used very infrequently later on. Most of the time, it could only be left in the parking lot to gather dust. The idle cost and depreciation loss made this seemingly glorious consumption actually a huge economic burden. After all the trouble, there was only a little over 13,000 US dollars left in my account. I thought I could learn from this experience, but when I got my second savings that exceeded 30,000 US dollars in life, I "acted foolishly" again and plunged headlong into the wave of buying a house. This time, I almost emptied all my accounts. After buying the house, my life suddenly became tight. I had to be extremely frugal even for meals. It took me two or three years of living frugally to gradually recover. What's even more heart-breaking is that the real estate market is full of changes. The house that I had placed high hopes on depreciated significantly. Seeing my assets shrink, I was filled with remorse, regretting that I had been too impulsive and lacked reason when buying the house. Now, I am burdened with a mortgage. Every day, I work like a spinning top, leaving home early and returning late, working overtime, sacrificing my weekend rest time, and often staying up late. I am completely exhausted. Sometimes, I even feel that there seems to be no other meaning in life except for endless fatigue.

I am not alone. Looking around me, many colleagues, classmates, and friends are also in a similar predicament. It's just that the amount thresholds and the order of consumption and investment for "acting foolishly" vary from person to person. Some people may buy a house first and then a car, so their "folly law" becomes the "50,000 US Dollars Folly Law," the "60,000 US Dollars Folly Law," or even the "100,000 US Dollars Folly Law." Take a relative of mine as an example. The first 50,000 US dollars in his life was used to build a magnificent house in his hometown. Then, with the second 50,000 US dollars, he bought a house in the city, just to create a better living and educational environment for his children. However, after all these operations, he was burdened with debts, and there are still some outstanding loans that have not been paid off. There is also a friend of mine who is currently torn between whether to sell his old and shabby small house and buy a larger one. He plans to just make do with the car for now. It's obvious that he is also wandering in confusion when it comes to financial planning. Another relative of mine once had 150,000 US dollars in cash at most in his family. But then he started to spend money wildly, paying off the mortgage, buying a commercial property, changing the car, and building a building in his hometown. After a few years of such a mess, there has never been more than 30,000 US dollars in cash in his hands again.

When we calm down and reflect, it seems that we have all lost our way while chasing after material things. In fact, if we could spend more money on broadening our horizons in life, it might be more valuable. Traveling around the world and all over the country, experiencing different local customs and cultures, encountering the beautiful things in the world, and enriching our spiritual world will undoubtedly make our lives more fulfilling and wonderful. Or, we could invest our energy and money in self-improvement. Strive to enhance our professional skills, making ourselves more competitive in the workplace; improve our academic qualifications, opening up broader paths for future development; and enhance our personal taste, shaping a better version of ourselves from the inside out. Aren't these all more meaningful things? At the crossroads of financial management and life choices, we really should stop our hasty steps, re-examine the situation, and no longer let impulsiveness and blindness dominate our decisions. Let's not allow the "folly law" to repeatedly rewrite the trajectory of our lives.