Ways Wrong Priorities Cause Bad Borrowing Habits

We are first and foremost humans, and so we make mistakes at some point or another. Someone may have overspent on a new designer handbag, and others may have taken too much debt to fund their out-of-country trip. While making a mistake or too is a universal experience, bad borrowing habits shouldn’t be.

Keeping Up with the Joneses

The reality is that social status and material possessions are two sides of the same coin – one not existing without the other. When we see our friends or neighbors with their newly snag items or latest exotic vacations, we may find ourselves saying, “I need those, too. I deserve those, too.” Before we know it, we are already talking to a money lender Singapore.

Keeping up with the Joneses is a recipe for financial disaster. When we prioritize social status over financial prudence, we’re setting ourselves up for a lifetime of debt and financial stress. No one deserves a life touched by the constant worry of how they are going to make their next payments.

The Instant Gratification Trap

Same-day delivery, instant streaming, quick cash loans — we expect fast results because that’s how we’ve become programmed to operate that way in a highly fast-paced digital world. It’s why when we want what we want, we want it now. Not next month, not tomorrow, not even a little later.

Here’s one of the downsides of instant gratification: you cannot apply it to your long-term financial stability. If you do, you might send multiple loan applications without self-reflection or ask your family or friends for extra cash even when you do not actually need it and in the end suffer the consequences. This habit is dangerous for your financial and mental well-being.

The Fear of Missing Out (FOMO)

FOMO, or the fear of missing out, is a real phenomenon in Singapore. We’re afraid to miss out on the latest trends, the hottest events, and the most exclusive experiences. And often, we’re willing to take on debt to make sure we don’t miss out.

But here’s the thing: FOMO is a myth. There will always be another concert, another sale, another trendy restaurant to try. And if we’re honest with ourselves, we’ll realize that most of the time, we’re not really missing out on anything that life-changing.

Prioritizing Short-Term Gains over Long-Term Success

When we prioritize short-term gains over long-term success, we’re more likely to take on debt to fund our immediate desires. We might take out a loan to invest in a get-rich-quick scheme, or use our credit card to fund a business venture that’s unlikely to succeed.

But the truth is, financial success rarely happens overnight. It takes time, effort, and discipline to build a strong financial foundation. And when we prioritize short-term gains over long-term success, we’re setting ourselves up for financial disappointment.

Conclusion

So, how do we break the cycle of bad borrowing habits? The answer lies in re-prioritizing our values. Instead of prioritizing social status, instant gratification, and short-term gains, we need to focus on building a strong financial foundation.

This means setting realistic financial goals, creating a budget that works for us, and avoiding debt whenever possible. It means being honest with ourselves about what we can afford, and what we can’t. And it means being patient, knowing that financial success takes time and effort.

In the end, it’s all about perspective. When we prioritize our financial well-being over our desire for material possessions and instant gratification, we’re more likely to make smart financial decisions. And that’s the key to breaking the cycle of bad borrowing habits.