Bankruptcy and Discplined Spending

In Sunday Times (22nd June 2008 edition), it was mentioned that those that are under 30s are now forming a larger percentage of those filing for bankruptcy.

Main reasons given was the materialism and desire for high life. Having desire is good because it spurs you to seek out more avenues to satisfy your desire, but if inappropriately handled can be disastrous.

Thus it is strongly recommended that you do some budget planning. Have a budget on how much to spend per month. If you desire a luxury item that will take several months to save up, try to resist the urge to sign the purchase with your credit card. Instead, put the money away in another savings account that is not very accessible to you, immediately when you receive your salary. Give yourself small rewards when you have successfully put aside some money, this will keep you going. Once you have save up enough money, please go and sign the purchase with your credit card to earn some rewards and also the luxury item you have been waiting for months!

Preparing a budget and sticking to it might not make you a millionaire but it is essential to help you be free from financial problems. Preparing a budget would also allow you to see where your money is spent and are you spending it wisely, building both for the long term and short term plans of your life.

For more information on cash budget planning or other financial planning, please click here.