I've found this to be true not just of financing and money but of scheduling and time as well [1]. I wouldn't be surprised if this applies to many other resources, like employees in a company.
For example, given the task of building a complex system under a time constraint, it's easy to exhaust the time granted, be it a week, a month, or a year. A complex system can always be more perfect, so you can always spend more time on making it better. A limited resource (e.g. a week) can force you to focus on the essential solution whereas an abundance (e.g. a month) can lead to frivolous design and overengineering.
The antidote seems to be organizational restraint, concrete milestones, and constant readjustment to keep in line with greater goals. Scope creep, perfect-as-enemy-of-good, and bike shedding are all aspects of this behavior.
For example, given the task of building a complex system under a time constraint, it's easy to exhaust the time granted, be it a week, a month, or a year. A complex system can always be more perfect, so you can always spend more time on making it better. A limited resource (e.g. a week) can force you to focus on the essential solution whereas an abundance (e.g. a month) can lead to frivolous design and overengineering.
The antidote seems to be organizational restraint, concrete milestones, and constant readjustment to keep in line with greater goals. Scope creep, perfect-as-enemy-of-good, and bike shedding are all aspects of this behavior.
[1] https://en.wikipedia.org/wiki/Parkinson%27s_law