“There will be inflation and the standard of living will go down. That’s the effect the higher fuel prices will have on the people,” said Tun Dr Mahathir Mohamad. “The rakyat is already burdened by the rising cost of living. We cannot justify the increase by saying that our fuel price is still lower than Singapore,” he said.*
Almost everyone I know are discussing, angry or complaining about the recent increase in petrol price in Malaysia. People are already contemplating to get by the increasing cost of transportation by suggesting various means such as car-pooling, buying a fuel-saving car, taking public transportations, or even cycling to work. Well, I must say that these are valid moves to reduce our daily expeneses. BUT… how long can we continue doing this to keep reducing our standard of living? This is a defensive financial approach towards our personal finances.
There is another way.
We should start taking the offensive financial approach instead, so that we will not be cornered at the end of the day, only to realize that we are in a serious state of financial disaster.
There are a lot of highly paid people who are still poor, or are drown in debts and high monthly commitments. They are not incapable people. In fact, most of them are at managerial levels or running a group of salespeople.
The main reason that had led to many people’s poor financial lives is that they are trading time with money.
Look around. What are those basic living expenses which had increased in price since the past 5 to 10 years? Are there any of your monthly expenses which had been increasing steadily within the past 5 to 10 years? How much had they increased? How much more do you think they will increase?
The only way we can keep coping up with the ever increasing cost of living while maintaining or increasing our standard of living, is to be offensive in our financial approach, and not to be defensive all the time.