Get rid of unneccesary debts

Salam to all,

Are you good at spending? Yes what kind of question l posed!
Are you good of saving? Er....well depends!

It is our nature to have been attracted to the short term excitement through shopping and spending as if there is no tommorrow.

The fact is, personal finance at the price of is never been taught at schools or even colleges/universities. Only a few that taught entrepreneurship program but that has nothing to do with how to manage our own personal finance.

One of the good advice is not to have credit card at all when you start working. Believe me, once you have used it, it is like a drug addict! You will use it as it is so easy not to give the money and yet we shall have whatever we want.

There are cases whereby somemone , a fresh young graduate has been declared bankrupt at the very young age for having debt to the bank up to RM30K due to the high interest of 18% per annum.

Imagine,when you purchase an item or clothes at the price of RM500, normally you will pay RM50 to be settled within 10 months. But due to the interest, you will end up paying more than 20 months due to additional interests.

Do not get attracted with campaign from the credit card companies for you to have their faciilties. they make your life miserable if you use the card more than what you earn or afford to buy.

If your basic income is RM2000, your expenses should be less than 1500 and 500 is for saving. However, due to the desire to have what we want without saving, we end up buying items which are beyond our affordability.

Say for example, you want to have a laptop at the price of RM3500. Instead of using the card, why not you save RM500 a month for 7 months without fail. And then, you proceed with confidence to buy it for cash.

You pay as you go.

So do not stop for a second when you are approached by any card promoters as they are the one who will introduce you on how to make the bank richer and you losing the money by accepting the term of interest.

"I am not interested, qould you please get out of my way!"

Another thing is to increase your knowledge on personal finance management. Read a very good book for a start by Hajah Rohani Datuk Hj Mohd Shahir entitled "Cukup Wang Hati Tenang" and another book entitled "Hidup tenang walaupun berhutang" by Shamsuddin Abdul Kadir. Very cheap book and yet valuable tips and wisdom.

I do not want you to get problem. It is fine to earn a small income but we are DEBT FREE.To be in that kind of stage is the fullest freedom and the most happiness in the world. It is fine to drive a small car, still rent a house as long as the car is ours and we have no debts whatsoever to the bank as compared to our friend who earn more than us but he has 4 credit cards' debts to pay to the bank and high monthly installment forn his huge car and expensive maintenance!His salary is only to settle bills and no room for saving.To have this personal freedom for having debt free is to no fear to the phone call and numerous bank letters and reminders which an make us look older due to the stress!

Having said that, except acceptable and good debt such as housing loan is acceptable. But that only within your affordability by taking into account your liability and another commitment such as car loan and education loan.

Best wishes and live within your means!