Avoiding extremes, moderation in spending habits

This hadith warns us about the dangers of greed and avarice. It tells us that those who came before us were destroyed because they allowed themselves to be controlled by these vices. Greed leads people to become niggardly, or stingy, with their money and possessions, while avarice causes them to be wasteful or profligate in their spending. Both of these behaviors can lead to a breakdown in relationships with family members and close friends. We should strive instead for moderation in our spending habits so that we do not fall into either extreme.