According to a study made recently, it was found that the Malaysian people did not have an extra to make deposits or savings after paying various bills, loans, excise and other commitments. But truth be told, most people in this country are actually shop more than their income. They are only able to budget the shopping use for a short period of time, so they do not have more money for the purpose of savings.
Actually, high income is not a guarantee. If the income is big but the expenditure is the same size, how would it be? It will still lack. This problem is very related to financial habits. You can still set aside money every month regardless of your income if you carry out healthy habits related to family financial management.
In our view, you don’t have to live hard to be able to set aside money. All you have to do is become a smart shopper and a careful buyer and know how to avoid from overspending.
Needs vs. Desires
Actually, there are no definite limits to determining the difference between needs or desires. Need is something that is needed by every human being, because this is a basic matter such as clothing, food and shelter. Whereas desire is something additional to the needs that are expected to be fulfilled so that the person feels more satisfied. But if the desire is not fulfilled, then the welfare is not reduced.
However, what is called welfare and satisfaction is also very relative for everyone. Whereas we argue that to distinguish between needs and desires, it must be seen in terms of its function. Something is said to be a desire if it is already an addition to its main function.
For some people, cars are a necessity. To be able to support their activities outside the home and travel frequently, the car is a transportation tool that is needed. If the main function of the car is for transportation, what about the addition of various kinds of car accessories, the ends of which do not make you more comfortable driving but more just beautify the appearance.
I don’t think it’s a need, it’s just a wish. And this desire can be postponed if all the other needs are me properly. Hence, before buying anything compare prices first. Maybe it’s the same item but the price is not the same in other places. So be a wise buyer and users from now on.
Maximising the benefits of a credit card
Middle-class people using credit card are no longer new in our community, many even have more than 2 cards. Credit card is a payment tool that is prevalent in some of our communities, even they tend to see credit cards as a lifestyle.
Credit cards even provides many additional opportunities for consumers and users to get convenience both in transactions and payment schemes which that can be paid in instalment system.
Even though credit cards have become an icon for middle-class people in big cities, many are still trapped. Monthly, most of the salary income actually runs out to pay interest on credit cards.
Our advice is for all credit card holders to be more discipline in using credit cards. Try to use a credit card which already budgeted in family finances. Use it when it’s really necessary to help your monthly budget. If you can go through the first suggestion, it is better if you divert routine expenses, such as paying for telephone, electricity and others into a credit card.
And you should never take cash through an ATM with your credit card, not just it will incur big interest but also the cost of expenses and the application of direct interest calculations, unless you have exceptional reason like emergencies.
Try to reduce your entertainment activities such as watching movies, karaoke or playing bowling. Maybe this activity will be even more fun if you do occasionally.
Same as food and drinks, you no need to pay dearly for a trip at local hipster cafe or a grand place, better to choose a better fancy place but the price of the menu is cheap and delicious. Well, it also not wrong to go on vacation, but design your trip so you don’t overspend all the way.
Overspending is very easy. You walk to the store, intentionally to get one item, and before you know it, you have spent 10 times what you wanted earlier. And dealing with the consequences of overspending is not pleasant by anything we could imagined.
Sadness, pressure, anger, jealousy, and boredom can all cause excess spending. If you are disappointed, delay the trip to buy so that you are in a better atmosphere so that your emotions do not cause you to overdo it.