A few months ago I attended a workshop related to finance, and the overseas consultant in a light-hearted remark noted how Bruneians (in general) are relatively rich (er) but also make some poor personal financial decisions.
Back then, I took his remarks as a given, thinking that Bruneians, just like any group of people are not all financially knowledge-able. Some will be better financially prepared or plan their finances wisely than others. It all boils down to knowledge really. Or so I thought.
Recently, I have some time to reflect & am beginning to question, maybe greed has some role to play as well. Even if we know financial planning or personal finance, some of us will buy that expensive car (he/she knows is over their monthly budget) or just about any item/service that is not needed. We create in our mind this group of luxuries (which we categorize as 'needs'), and make an attempt to justify it's existence in our everyday lives, not because we need it per se but we want it. Greed?
The consequences are that we become in debt to banks, or worse to informal moneylenders, or our family members. In a worst case scenario, we die with debt hanging over our souls (as Muslims, this is a big thing as my previous blog noted) or at it 'mildest', we lose a bit of our dignity (knowingly or unknowingly) as debt has a way of decreasing our value (primarily because we owe someone or some entity, i.e. we are indebted to them).
So maybe we should not only learn the knowledge or tools of financial planning, but also embrace the discipline of not entertaining our greed and look away at such 'needs'. Maybe and maybe only then, can I respond to that consultant that it is actually only the lack of financial planning knowledge, and not greed that makes some Bruneian or any people for that matter 'poor'.
Back then, I took his remarks as a given, thinking that Bruneians, just like any group of people are not all financially knowledge-able. Some will be better financially prepared or plan their finances wisely than others. It all boils down to knowledge really. Or so I thought.
Recently, I have some time to reflect & am beginning to question, maybe greed has some role to play as well. Even if we know financial planning or personal finance, some of us will buy that expensive car (he/she knows is over their monthly budget) or just about any item/service that is not needed. We create in our mind this group of luxuries (which we categorize as 'needs'), and make an attempt to justify it's existence in our everyday lives, not because we need it per se but we want it. Greed?
The consequences are that we become in debt to banks, or worse to informal moneylenders, or our family members. In a worst case scenario, we die with debt hanging over our souls (as Muslims, this is a big thing as my previous blog noted) or at it 'mildest', we lose a bit of our dignity (knowingly or unknowingly) as debt has a way of decreasing our value (primarily because we owe someone or some entity, i.e. we are indebted to them).
So maybe we should not only learn the knowledge or tools of financial planning, but also embrace the discipline of not entertaining our greed and look away at such 'needs'. Maybe and maybe only then, can I respond to that consultant that it is actually only the lack of financial planning knowledge, and not greed that makes some Bruneian or any people for that matter 'poor'.
1 comment:
According to me we are in the field of finance from long time but never take finance that much serious as studies. Saving money is very much important point in fiance, we know this but still we don't do it, so for that personal financial planning is essential. On the other hand budgeting is also important one what we think about budgeting is very wrong it's not like we have to live poorly at all and investment is the third point, invest after full knowledge and search will help you to earn great profit. For more details on Personal Finance Planning refer Personal Finance Planning
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