We live in an age where DIY is common. There is no issue doing so, in fact here are some of the things you should take note.
1. Look beyond increasing salary
When dealing with an uncertain future, the usual response is
‘I gotta get a higher salary’
‘I gotta change job’
‘I gotta find better opportunities overseas’
‘I gotta go into business’
‘I gotta do MLM in my part time’
So on so forth. Nothing wrong with that, but there is also another dimension of personal finance called cutting expenses.
2. Cutting expenses
This is a taboo subject, especially for people with families. Usually people will give a thousand and one reasons why expenses can’t be cut but usually it boils down to family expectations. If my family members and friends are used to getting this much of treats from me, cutting them would make me a failure.
Sometimes, but not often, people will admit it’s their own insatiable desire for the finer things in life. That’s why they overspend and don’t save.
But the biggest problem to start cutting expenses is due to:
3. Don’t have a plan/ plan too vague/ future will take care of itself
If ah Chong doesn’t work out his financial obligations and dreams, there is no way to calculate how much to save anyway. The natural course of action is to plan vaguely by investing in ‘investments’.
High risk high reward, low risk low reward, try your luck, you might bang your way to financial freedom cause Facebook got so many success stories, no?
Most people understand investment as timing, luck, know-who, etc. in short: entirely speculative.
I think if more people study businesses and economics, then maybe the fundamentals and the mechanics of investment is apparent.
But for now, using speculative investments to fuel vague plans and uncertain dreams without cutting spending and doing job hopping all the time, there is a fundamental disconnect between using money consciously and being a slave to one.
I think financial education has not caught up in a world where personal finance and wellbeing is increasingly intertwined. If we are not aware, we will start to do irrational things with our limited financial knowledge. Irrational in the sense that it runs contrary to the actual economic system and our own health. If we fake financial success, one day the debt will come due. Long term financial success always depends on how well we discern and navigate economic realities.