Recently WeirdKaya shared an article regarding a netizen’s financial struggle despite earning RM13K a month. He was left with savings of RM23 after settling all his bills each month. I am sure there are many who could identify with him. Many comments were made. Many gave good advice too.
We often assume that high earners who have more financial resources at their disposal have significantly more savings. However, this may not be the case for many these days. Investopedia revealed that many upper-middle earners are actually living from paycheck to paycheck these days. And we quickly blame it on inflation and the rising cost of living. But is that really the case?
Why do people get entangled in the web of unending debts? I believe a major factor is their need to keep up with a particular image as they find themselves climbing up the corporate ladder or gaining financial success. Many will go for bigger houses, bigger cars and adopt more lavish lifestyles. Unless we are very disciplined or realistic, we will soon find ourselves in debt due to the many loans which we need to service or even our monthly credit card payments. Sometimes, such a situation can be due to bowing down to their parents’ expectations, pestering their children to change cars or adopting a more lavish lifestyle.
I believe the real reason is our lack of personal discipline. We overspend and end up using our next month’s salary even before earning it. Those who procrastinate and do not settle their debts within the given time frame end up paying higher interest. Some may also take to a habit of splurging whenever they are depressed. Many may not be realistic with our changing environment, especially with the havoc caused by Covid 19 and various natural disasters.
A good reminder for all is to strike a balance between spending now and saving for the future. We need to prioritize, choose what is important and cut out the rest. We need to forget about keeping up with the Jones’ and be real. If we know that we lack discipline, then refrain from using credit cards. We must make it a point to save a percentage of our earnings every month, however small it may be. Then we can really be free to live and enjoy our days ahead.
May each of us be given the wisdom and courage to be financially liberated. May our leaders work together to move Malaysia out of her many woes.
Mei Wong is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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