Posted by There are many factors that drive debt problems, but attitude is the most basic and most important to overcome. Having the right mindset and attitude change that can help us avoid debt problems.
We are aware that not all debts incurred by Malaysians are bad. There are good debts such as housing, education, and business loans.
However, that is no reason for us not to be careful of falling into a debt problems. Efforts to promote financial literacy need to be continued, even intensified.
Watch for these 4 habits that can get you into a debt problems:
Relevan shares four attitudes that are a sign of your tendency to get into debt, according to the Agensi Kaunseling dan Pengurusan Kredit (AKPK).
1. Greedy and impatient
There used to be scratch-and-win schemes and get-rich-quick schemes. People are easily fooled by fantastic offers that promise money and luxury.
In addition to the lack of financial literacy, greed and always wanting the easy way also plays a role.
There are many disadvantages if you lack patience. In an economic context, it makes it easy for you to fall into the trap of fraud and cultivate a debt-loving attitude.
The Buy Now Pay Later service (BNPL) is getting more popular. If you’re impatient, it’s easy to fall into this ‘retail debt’ trap.
So, teach yourself to be patient and get rid of greed. If your present salary is all you need to live, enjoy living on what you have. Be patient and try harder to enjoy a more luxurious life in the future.
2. Broke but stylish mindset
It’s not that we are forbidden to be fashionable. But with limited resources, we need to be more thoughtful about managing our finances to be stylish like everyone else.
The problem is when we want to be fashionable so much that we are deep in crippling debt.
Always distinguish between your wants and needs. You need to start differentiating them. It will help you to prioritize your spending.
Just because you want to be stylish, you buy an imported car with a high monthly payment. This is where your priorities are wrong. You only need a car, not an expensive imported car.
If you really want something that is beyond your means, save up. Make the item a reward for your patience in saving.
3. No savings
Not everyone can save well, but for those who can, ensure you have enough, especially emergency savings.
Unfortunately, you can never expect unfortunate events. Sometimes, there is an emergency out of the blue that requires a lot of money. Without emergency savings, we must surrender to the urge to go into debt.
Remember, financial management will be messy once you go into debt without long term consideration. When you go into debt due to an emergency, you don’t have time to think about it. So, the best preparation that can be done is to prepare emergency savings.
4. Obsessed with social media trends
Social media has become an essential part of human life today. It can even influence a person’s consumption habits – social media determines what you will buy.
Seeing the lavish lives of influencers and artists is challenging. We envy of the things they have but self-control and self-awareness are important.
You have to think if you have as much money as those influencers and artists you follow. Many branded items owned by the influencers, and the artist are sponsored. Even if they are influencing you to buy those items, they may not necessarily want or be able to buy for themselves.
So, live within your own means. Don’t easily follow the trend in social media, especially if it is beyond your ability.
If you are looking for a job that truly fulfills you, visit Jobstore.com today!
Anisa is a writer who focuses on career and lifestyle topics in an effort to motivate both job searchers and employers towards greater fulfillment in their professional lives.
Reach me at anisa@jobstore.com.