Singapore is part of the global economy. As such, cultural changes can also affect the lives of Singaporeans. In particular, culture can influence your habits of borrowing money from a private money lender in Singapore.
Here are four cultural phenomena that can increase your tendency to borrow money unnecessarily.
Buy Now, Pay Later
Buy now, pay later (BNPL) schemes are quite tempting these days. BNPL essentially means you can get the things you want without having to pay for them right away. Soon enough, though, the bills will chase you quickly and aggressively.
If you are not careful about your BNPL purchases, they can rack up pretty easily. You may find yourself having to take out loans just to pay for all those purchases. With that, BNPL can easily get you into debt, so you must be careful about these ‘deals’.
Cashless transactions
Modern financial transactions no longer involve physical cash. Many people prefer to use e-wallets, credit cards, debit cards, and NFC-based payment platforms. They are convenient because all you need is your mobile phone or a card. No need to bring thick bundles of cash each time.
Thing is, overspending is a lot easier with cashless transactions. You do not see the money leaving your wallet this way, so it’s harder to keep track of how much money you have left and how much you are spending. Cashless systems keep detailed transaction records, but people don’t often check these. You may find yourself unpleasantly surprised a lot of the time because you’re suddenly almost out of money.
Next to that, you may have to take out loans more often to cover your other expenses.
Lifestyle inflation
Lifestyle inflation involves spending more as your income increases. With that, you cannot save more money, and the higher income will only serve to sustain an upgraded lifestyle. It is not a financially smart move, and it often leads to people going broke despite having large salaries.
Lifestyle inflation is a quick way to get trapped in debt. If your income can no longer sustain an expensive lifestyle, you may turn to loans to keep up. This will only lead to financial trouble.
Peer pressure
Finally, your peers may make you jealous of their lifestyles, or some of them may even persuade you to live the way they do. They may compel you to spend above your means, forcing you to take out loans to cover your important expenses.
If your peers encourage you to spend hastily, it may be time to learn how to not spend too much time with them, as well as how to resist pressure to spend from them. Instead, go with peers who inspire you to save, invest, and put your money to good use.
Conclusion
Cultural changes going on in Singapore can have a big influence on your borrowing habits. Some of them, like these four, can make you less wise with your money. Beware of them, and instead cultivate healthy money habits that allow you to build wealth. This way, you can make your money grow instead of losing it.
Be First to Comment