Are You Spending More Than You Can Afford?

are you spending more than you can afford?

Bills, loans, and payments are unavoidable for most of us, especially fresh graduates or youngsters. This isn’t even taking into account basic necessities like food, accommodation and transport yet. 

Based on a Bank Negara report, fresh graduates with diploma certificates earned an average of only RM1,376 in 2018 as compared to RM1,458 in 2010. Meanwhile, Master’s degree holders also encountered a drop from RM2,923 to RM2,707. 

When the talk about saving money rolls around, many millennials do badly. We know we should save, but how much do we actually end up saving? Or rather, how much are we able to save?

While necessary things like study loans are unavoidable, spending habits also affect the amount we can save. Cafe hopping, bar hopping and shopping are just some of the few unnecessary hobbies and habits a lot of millennials have, with the price of one cup of coffee at a nice averaging between RM 8-RM18. Retail therapy is also very real, and most seem to focus on how shopping makes them feel good while blissfully ignoring their bleeding bank accounts until much later. 

What about new phones, expensive trips, and other indulgences? The total amount is pretty substantial, and after deducting the accumulated expenditure, it is a wonder how fresh graduates have even managed to survive this far. There are a fair amount who also decide to prioritise other things instead of settling outstanding payments, resulting in increasing debt. While it may seem like a relief now, that might just change 5 years down the road when the outstanding debts accumulate and keep increasing.

Check yourself - it might be high time to change your spending habits!

By: Celestine Foo

RELATED ARTICLES