We’ve all heard the saying: “People spend money they don’t have to buy things they don’t need to impress people they don’t even like.” Sometimes, we feel the need to go to hell and back just to prove our worth to other people. However, we may end up losing more than what we bargained for. This is how most people end up embracing the culture of debt. While it is also important to note that some may have been forced to borrow money due to unforeseen events such as, but not limited to, medical emergencies, many people however, are buried in debt due to expensive lifestyles and poor money management skills.

Contrary to what many people believe, debt is actually a symptom and not the problem. When a person suffers a headache, the symptom, it is usually due to lack of sleep, the root cause. In order to cure his headache, he must first address his lack of sleep. Many people fail to get out of the debt trap simply because they try to focus on the symptom and not on the problem.

So what is the problem? What causes debt? Like many other financial problems, it all boils down to a lack of financial literacy. Another related cause is the lack of discipline. If you have these two problems then you are most likely to be in debt. So  in order to address the problem, try to equip yourself with financial knowledge and muster the courage to be disciplined in spending your hard-earned money. There are several companies offering free financial management seminars. One of them is IMG or the International Marketing Group. It wouldn’t hurt to try and attend one of their seminars. (For more information on free financial management seminars, you can reach me at jick@img-wealthacademy.com). You could also read books on personal financial management to prepare you even more to absorb some life-changing advice and information.

Lastly, don’t worry about buying less expensive things even if it makes you look poor in the eyes of other people. Debt is a culture you’re not required to embrace, and you should not allow other people’s opinion affect your self-esteem. A fat wallet will boost your self-worth more than a fat ego.

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