Sharing Daily Discoveries About Personal Finance And Business Topics

Purposely Spending A Lot of Money To Get More

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This sure sounds like such a preposterous scenario. Imagine being a business and having trouble figuring out how to actually spend more money where the budget that one was given seems way too much than needed. A person was explaining to me how this happens all the time with company that receives things such as grants or requesting for money to create some kind of project. The reason was that if in the future the investor finds out that the business can actually finish the job with way less money in the future they will get less. So they have to intentionally find ways to make the production expensive for future funding as well.

So seeing how they did it there were things such as giving people a ridiculous salary or acquiring expensive resources that are unnecessary. Imagine for like transportation people would just need to walk three blocks but instead are given vehicles to communicate that sort of a distance. One person was expressing how the investor should be upset but then another was saying they don’t care because they make millions in profit regardless.

I am sure most small business owners that struggle financially probably hate larger businesses even more if they heard stuff like this huh? It is interesting too where the people with the background of not living a lavish lifestyle of sort had extreme difficulties in trying to figure out ways to legitimately spend a ton of money for stuff one would technically need in the most financially inefficient way possible. It’s like it just feels so wrong yet if you think about that’s how many people do get wealthy where they capitalize on situations like this.


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