To spend beyond your means is almost equivalent to digging your own grave because it comes with LOTS of “hidden charges” which will drown you as time passes.
In a recent podcast by Malaysian financial advisor, Financial Faiz, Malaysian lawyer Hafiz Baharuddin shared his take on what drowns the youth today financially – vehicle loans.
“Some youngsters are paying monthly for a Civic Hatchback when they only earn RM2,800 per month.”
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In a snippet of the podcast shared by @financialfaiz, Hafiz, sometimes known as Abang Lawyer said most of these youngsters cannot picture the financial challenge because they are not married.
“They don’t have kids yet, they are not exposed to a more complex life lesson which many people will experience down the line.”
When commitments are piling up after the marriage, things are made worse when some of them “educate” their wife by telling them to combine everything and pay all the loans together. Abang Lawyer then revealed that most of his clients who came to him for bankruptcy cases were youngsters who struggled to pay off their vehicle loans.
“Some are even struggling with credit card loans.”
“Why should I pay if it’s damaged?”
Mindsets in financial literacy are crucial. Without the right one, you’re bound to countless financial traps and according to Abang Lawyar, some people refuse to pay for their vehicle loans when issues arise.
“For instance, some of them buy a motorcycle, and when the vehicle is damaged and can’t be used, they refuse to pay the loan because they can’t start the engine.”
You can watch the snippet of the podcast below and the full podcast on YouTube.
@financialfaiz Punca-punca orang muda ni muflis awal! Orang yang muda ni sebelum kahwin banyak ambil loan sana sini sehingga dibawa selepas kahwin! #financialfaiz #nazrihamdan #klpodfest #loan #youngsters #education
Let’s make it simple. If you’re on a loan for anything at all, you’re obligated to pay off the loan. If you foresee tough days ahead with the loans staring at you, it’s wise to identify your needs and wants.
Also read: 24yo Borrows Money From Ah Long to Pay Outstanding Rent, Ends Up Owing RM32K to 16 Loan Sharks
