Spendaholic anonymous

 

Do you find yourself constantly short of cash? Makes you wonder where the money goes? Then read on.

THIS is not a spin-off from “Confessions of a Shopaholic” that has recently hit the big screens and you will not find Isla Fisher giving you shopping advice here. Although the title may sound like it belongs to one of the many “shopaholic” installments created by Sophie Kinsella, what we wish to convey here are simple but fundamental messages to which you should pay attention. You may find them simple enough, but you may have faced repeated failures in taming that “Rebecca Bloomwood” lurking beneath that calm and collected exterior of yours.

So, read this with an open mind — whether you are a man or a woman, there must have been instances, where your compulsive desire to splurge is so overwhelming that you succumb to it.

You can never play down the importance of prudent money management habits. It is what determines the extent to which you develop yourself as a successful investor. Investing needs money, and in order to get that money, you have to manage what you have wisely.

Remember, a good investor is not only one who uses information and makes correct informed investment decisions but also one who manages his or her spending well. There is no point in having a good investment plan that fails to take off because you don’t have the necessary amount of money to actually start investing. Having a good investment portfolio that can generate good returns also serves no purpose if you deplete your cash on unnecessary spending.

Do you find yourself constantly short of cash? Makes you wonder where the money goes? Then read on. If any of the scenarios listed below bring back flashes of déjà vu, chances are you are a “spendaholic”.
The BIG money is on its way

From the grapevine, you heard your company will be giving out bonuses. So you start spending big, usually using credit cards. You end up with financial problems because the bonus was far less than had expected or, worse, there aren’t any!
If you are a spendaholic, you are not alone. Many people struggle with their spending habits and don’t know where to draw the line.

Shopping and spending have become a modern-day manifestation of the old human hunting and gathering behaviour. Instead of getting the biggest woolly mammoth, we now go to the malls or shopping complexes searching for the ”big kill”. It is a problem but it can be overcome.
Did not receive early
financial education
No one has taught you about managing your finances and you don’t bother to learn or seek help. Your simple motto in life is to work hard and spend even harder.

Why not, right? You have earned every little cent through hard work, it only makes sense for you to blow some, or for some, a rather substantial sum, of what you rake in monthly on a branded watch, a pair of shoes, handbags, new sports rim for that brand new car you bought.
Lifestyle maintenance

Once you are accustomed to a life of luxury or keeping up with the trends, you feel compelled to maintain it, even under financial constraints. You feel that you have no choice but to live up to that upper class image that you have built for yourself. So you continue to spend.
The word budget is not in your vocabulary

You just fail to plan your budget or if you have one, you just ignore it. Spending on things that you like without considering whether you can afford it has led you to financial hardship. Most people experience financial failure not because they plan to fail but because they fail to plan. Sounds familiar? Sounds like you?
To keep up with marketing ads

You flick through a magazine and read advertisements on the latest handphone or latest fashion. You cannot resist getting the latest items and end up turning yourself into a walking advertisement for the very same company you buy your goods from.
Festive seasons are here

One of the joys of being in multiracial Malaysia is the all-year-round festive celebrations. From weeks before the festive season, Malaysians always think NEW! And you are no exception. It means buying things like a new sofa, new curtains or new clothes, even though the ones you have are still in good condition and hardly worn.
Credit card mania

It is so easy to obtain a credit card these days. There are credit card promoters at every corner of a shopping mall and your supermarket. What owning a credit card does for you is that it creates an illusion that you have thousands of ringgit to your name to spend. You tend to feel that you have more money than you really do. You fail to remember that the credit card statement you get at the end of the month is going to be a big bang!
Too many sales

If the one thing in Malaysia you see no signs of slowing down, despite the trend the economy is taking, is our ever regular cheap sales. When sales are held, the whole nation goes on a buying frenzy and you get caught in the shopping mood. After all, items spotting 60 per cent and 70 per cent discounted tags are must buys. When else are you going to get such a good bargain? So, you find yourself spending uncontrollably, even on things you don’t really need.

We typically fall under either one or more of the eight scenarios listed here. If you find yourself unable to relate to any of them, congratulations! You have managed to dodge the cupid’s arrow for unnecessary spending! It is either that or you are in denial. If you are in denial, you may want to snap out of it as the biggest step anyone can take is to realise that he or she has a problem and wants to find ways to resolve it.

The new year is not on the horizon yet, but make a resolution today to plan your spending and manage your debt well. The earlier you save, the more you have to invest!

“Confessions of a Shopaholic” is one of the latest films to hit the cinemas in Malaysia. It is based on a popular book written by Sophie Kinsella with Rebecca Bloomwood as the main character; a financial journalist, who is in a serious amount of debt through her shopping addiction. Source: Wikipedia

Securities Industry Development Corporation (SIDC), the leading capital markets education, training and information resource provider in Asean, is the training and development arm of the Securities Commission, Malaysia. It was established in 1994 and incorporated in 2007.