We’re all familiar with the payday dilemma. Which bills do we prioritise? Do we have enough leftover to have a little fun? How much longer will it take to pay off this credit card?
While it’s good to always optimise your spending for happiness, you should make sure to spend on areas that will improve your overall financial health – resulting in overall better quality of life.
Here are a few suggestions on what you should spend your money on – even though you may not feel like it:
Student loans
For most Malaysians, this is the National Higher Education Fund Corporation (PTPTN) loan. Which we are notorious for not paying. In fact, it’s often the subject of heated arguments on social media. Some believe that the government should forgive the debt, other – more responsible types – are adamant that money borrowed should be repaid.
We know you’re tempted to delay the payment to have a little extra to spend each month. However, missing payments could have a detrimental long term effect on your financial health.
While borrowers are no longer on a travel blacklist for failing to repay the loan, there are other less obvious penalties. For instance, credit rating agencies pay close attention to unpaid loans. Even missing one or two payments could lead to a big hit to your credit score, and you wouldn’t even notice until you keep getting rejected for future loans.
Credit Cards
Some people will strongly advise you against getting any kind of credit card. Too risky they say. However, when used wisely, some credit cards can actually put money back into your pocket through cashback offers. In fact, you can also get free movie tickets, coffee, and money-back from your Grab rides.
The only catch is that you must consistently clear your credit card debt every month. Letting the interest accumulate could dig you into a very deep financial hole and overwhelm you. Once that happens, you’re going to need to do some serious lifestyle adjustments to survive
Just like your student loan, missing your credit card payments could affect your credit score as well. Unlike your student loan, paying the minimum amount is not recommended as it will only make things worse.
Insurance
Most of us tend to take our well-being for granted. We wait until something happens – and then try to raise the money to cover the bills. After all, bad things only happen to other people. Not a careful and reasonable person like you.
That’s sarcasm if you didn’t get it.
Having a comprehensive insurance plan should be among your top priorities. It’s good to start investing in a comprehensive medical plan as early on as possible – because you never know when something unpredictable is going to pop up and mess not only with your health, but also your bank account.
Other types of insurance are somewhat less important, but shouldn’t be overlooked. After all, you have other valuables that cost a lot of money to replace.
Career development
Don’t always wait for your employer and company to send you for training and career development programs. There are plenty of online courses that can help you get the necessary training and skills needed to move forward in your career path. Check out sites like Udemy or Alison courses for a wide range of courses – ranging from web design, English proficiency, photography, marketing, and more.
We know you live only once. But always try to think of long-term gains when spending your money. It’s easy to give in to instant gratification, and it’s okay to do that sometimes, but remember to always have your basic necessities covered first.
