This is a timely posts to answer the "hot-debate" on TheStar article saying that "Malaysians spend to stay trendy". How much does a young adults earning? Being trendy is very costly because all the luxury brands are expensive. How about techno-trendy? How are you going to chase after the fast changing technology gadgets? Please take note that you are still a young adults, new to workforce, and have a long way to go in the future. Without saving, how are you going to live?
No wonder 60% of Malaysians young adults were in debts, and they overspend by average 15% of their salary. Example, Eric earn RM2,500 and he spend RM2,875. After cracking our head, Finance Malaysia comes with the following 5 Reasons to explain the main contributing factors:
1. Lacks of Self Discipline.
Before blaming other, we did better to blame ourselves for all the overspending stuffs. Self-discipline is an issue for young adults nowadays. They tend to spend on what they "wants" instead of what they "needs". Example, they prefer to buy an iPad rather than a computer for work. No doubt iPad is more convenient, but its functionality is somewhat limited if compare to a laptop. Why not choosing a laptop which is more comfortable to work and better eye-sight?
We all know friends is important in our life. Without friends, we feel lonely. But, does it mean that we need to stay trendy just to get more friends and avoid being alone? True friends do not care about what brand are you using. True relationship does not build on "trends", that's why it didn't follow the fast changing trends and bonding strongly till the end. Those friends who care too much on trends may one day left you, once you're "expired".
Yes. Sometimes we have to blame our parents for feeding us all the best things since young. These had instill the "trendy" elements into our behavior, habit, and mindset without ourselves knowing it. When these "infected" young adults join the workforce with low starting salary, parents close the water tap, everything comes back to reality. So, these young adults keeps feeding themselves with credits and overspend. Blame your parents!
We can't deny that the social circle we are in right now is very materialistic. They emphasis on brand names, items that may boost their image or reputation or status, and things that appeared "cool" and "glamorous". We should change the perception of live now. Trends is not everything. Cash-rich is "cooler" than trend-rich.
Interesting, right? Because of the power of Facebook, we can view a lot of photos and get attracted by the way other people spend and enjoy. Example, glamour vacation, expensive gifts, latest smartphone, promotion... In order to encourage consumers to make instant decision, promoters set a timeline on their campaign or special limited-time offers. At the same time, many people wanted to show-off their stuffs thanks to Facebook.
Year End Sales is around the corner, Good Luck, Spenders!!!