Not only in gadgets or appliances did we have this malpractice of buying what we do not need. This also extended in buying our groceries. Since we have four kids; two boys and two girls, all of them buy their own brand of shampoo when they could buy just two. One for boys and one for girls. In essence, we also buy more than what is needed.
Second mistake: We buy things on credit and paid what is minimum due. We had seven credit cards and so we thought we have 7 additional source of funds to buy things we want. So we used our credit cards to buy things indiscriminately. Then we just paid what is minimum due not minding the interest charges that we had accumulated in time. Eventually the amount we have to pay for each credit card reached the maximum limit. Since we have negative cash flow, we had to default even on the minimum payments on each card, thus increasing further our payable amount with penalty charges. What we bought, we had been paying more than double because we did not pay on time and less than the required minimum payments.
Third Mistake: We did not manage our expenses. Instead of managing our expense, we resorted to getting loans. Fely and I changed our citizenship from being Filipinos to “Loandoners”! We got ourselves into all kinds of loans. You name it we have it. Salary loan, Pag-ibig Loan, Coop Loan, SSS Loan, Pawnshop loan, even loans from personal friends. We failed to control our expenses. We did not analyse what we were spending on. We spent beyond our means. We do not track what we spend on. So, we also do not know where our money goes. We thought that getting into more loans is the solution rather than controlling what we spend on.
Check here to see the many benefits of becoming an IMG Member. You may even win an iPad Mini:
https://6020h.30m2030.com
This comment has been removed by a blog administrator.
ReplyDelete