WE HAVE all experienced it, at one point in life or another. The sensation of having cash-in-hand entices the individual to go out and spend unnecessarily, with the inevitable feeling of guilt and regret setting in soon afterwards, or at least feel remorse by the middle of the month when one stares gloomily at that bank statement.
Unfortunately, it seems to have been ingrained into the Bruneian culture. Those looking for evidence of this fact can find what they are looking for by simply observing the long queues snaking their way to ATMs during the sleepy hours of the morning, eager to withdraw cash almost to the very minute that the monthly salary is out.
How is it that many feel the need to rush to these mechanical tellers and get their money "hot off the presses," unable to let their cash sit and accumulate with interest? It can be argued that the rationale behind this is to pay off that pile of debt, a constant reminder of payments due around the same time wages are out. Utility bills, car and house loans, and that extravagant spending splurge on that item you just had to have, all menacingly waiting to be paid.
With the annual bonus out this month, many have practised restraint and waited for lunch hours to withdraw their cash, dutifully avoiding the past conflict of tarnishing work ethics when employees went out during office hours to beat the ATM queues. However, come lunch time and the line seems to be endless.
While others may contest that they need to get the money immediately because the ATMs would be out of cash by the end of pay day, it is still questionable why they cannot set aside money from the previous month to pay off some debts.
The burden of debt brings us back to the mindset of Bruneian spending. Every pay day, thousands throng the commercial areas in the capital, jamming the streets with vehicles in a bumper-to-bumper tussle for that near-impossible-to-get parking spot. Once triumphantly parking their car in a safe location, the whole family walks into the shopping complex, armed with a pocketful of cash, eyeing sale signs under the air-conditioned halls.
Give it a few weeks and family 'A' and thousands like them across the Sultanate find themselves once more on the choppy seas, balancing the remainder of their salary between basic necessities and bills.
And what has this ongoing loop led our people to? More than $6 billion in loans as of March 2008, according to statistics released by Ministry of Finance earlier this year. Earlier reports indicate that non-performing loans have increased from $573 million in December 2007 to $595 million as of March this year.
It is high time for this mindset to change and for financial management and planning to take priority. His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam emphasised in a previous titah the need for a change in the community lifestyle by adopting saving habits from a young age.
Parents and working adults need to set an example for the younger generation by showing them the benefits of saving as opposed to the downfalls of impulsive buying. They should be diverting their attention to paying off debt, while saving that little extra for the future, for their children's higher education or for a rainy day.
His Majesty has called for the annual bonus to be shifted from February to December to increase parents' spending power for their children's school needs before the new school year starts.
The government has also shown initiative in inculcating the saving culture among the younger generation. Minister of Energy Pehin Orang Kaya Seri Dewa Major General (R) Dato Seri Pahlawan Hj Mohammad Hj Daud announced earlier this year that Tap (Employees Trust Fund) was collaborating with the Ministry of Education in incorporating the importance of financial planning into the education system beginning from primary education to secondary education.
A financial directive was also introduced in May 2005, which controlled the amount of loans that banks approved to its customers. Banks themselves are great sources for advice on financial planning by holding talks and seminars to foster saving habits.
The facilities are there. The door to financial salvation is open and it is up to the individual to take the initiative. Everyone must start switching to this way of thinking, if they have not done so already.
The savings culture cannot be stressed enough among the population. So long as the problem persists, relevant authorities should continuously educate people to accept and abide by a culture known for saving and not known as a community in debt, living lavishly on the outside, but suffering financial difficulties behind closed doors.
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