Today there was a scenario that reminded me how when you have a multimillion-dollar project at hand usually people would hire a bunch of people to take care of various departments with a set budget. However, I normal circumstances companies would be weary of keeping people after say eight hours as the overtime pay can really eat into a budget. But in this case they really didn’t think too much of as they were just keeping everyone around it seems which meant a financial hit. However, they had the budget so they didn’t really care.
That’s always a bad mentality to have as your financial habit such as spending money simply because you still have some left in the bank account. That’s usually a quick way to debt. How would you solve this as a large company where you can’t exactly micro manage everything while relying on the expertise of others? I suppose one common way is to attach some kind of incentive for people to perform better with less spending. Example, a bigger bonus for those who do so.
The other way of course is to give a very strict budget to begin with to the point where you have no flexibility to overspend in the same way on how a startup would have to mange their funds carefully. You have to learn to maintain your wealth once you have it as well.