Do you know what modern day financial crisis? Is it about the petrol increase or our salary is not enough?
Amelia Hong, senior vice-president of Success Concepts Life Planners give her reason on StarBiz :-
Living in excesses
– Perhaps it is a rejection of our parents’ frugality that we have the need for many things. We are likely to have more than one holiday a year, many expired goods in our pantry, 10 pairs of shoes and a fancier car than our parents.
Not enough fear of the future
– We grew up in a time of plenty with no real threat of war. So there is no need to have storage for future calamity. This abudance mentality has allowed people to throw caution to the wind and be totally comfortable spending every sen they have or even what they don’t have.
A reliance on other sources
– There is the safety net of FAMA (father, mother) who will rescue their distressed adult children. How long can FAMA sustain us before their lack of funds become our problem? Also, while EPF is a good retirement vehicle, perhaps it may not be enough to fund your cost of living over the long haul.
Putting present needs ahead of future need
– In the 1950s, the lifespan was only a few months after retiring at 55. Now, people are living two decades longer but have not realised the implication of that. They are enjoying themselves too much rather than thinking about the future.
That’s 4 reason of the personal finance crisis that we need to concern. We need to plan for our future if we want to live happily without financial crisis in the future.