Debt and Lifestyle - Cut cloth according to means

Most things have a good and a bad side, it all depends on the individual circumstances. For instance, an apple is healthy but for someone who have bad front teeth, it can damaging. Debt is not all bad, it can be a good debt if it is spent on something that can transform life completely for the long term, such as mortgage and student loan; bad debt is usually taken out to spend on objects to fulfil an acquisitive desire, where the individual does not have the financial ability to meet the repayments.

 

An annual holiday abroad, latest gadgets, designer fashions etc are 'luxury', items that are 'nice to have' but not a 'must have'. According to the BBC, 9 million Britons are in 'serious debt problems'. Perhaps in some cases it is not of their own doing but plain unfortunate, but it is a well-known fact that the developed Western societies do not have a habit of saving and for decades,  the West have been building their economy primarily on consumerism.

 

This could be a wake up call to the masses that we should learn how to live within means and understand saving is a virtue. Of course we all deserve a nice treat now and then but again, the bottom line is no matter what you choose to spend that hard-earned money on, cut cloth according to means. It may not be the latest iPhone but be proud of having the ability to own something outright instead of having the latest but constantly being in the red and worry about the next repayment date.