When I was in the US, I was impressed that there were so many fancy new cars on the road. Then a good friend of mine asked me a good question; how do I know that they were not deep in debt? I didn’t give it much thought, until one day a well-dressed stranger begged me for some cash to fill up at a gas station. He was driving a Ford Mustang.
I heard this saying during one Friday sermon (and modified it in my image of course). The wealthiest person in the world is not one who has the most money, nor he the one with the fanciest possessions. The wealthiest person in the world is truly one who desires nothing of this world. I say that makes him either religiously devout, or hopelessly crazy.
We have been conditioned all our lives to comply by the rules of a materialistic society. Social statuses are defined by how much money a person has and what things a person possesses. Consumerism. The constant need to get the better deal. To get the best money can buy. Hence the more money we have, the greater the need to spend on perceived better things.
The best financial advices ever given to me probably came from my mother
- Avoid getting into (credit card) debt. – Check. Somewhat. If we have to get into debt to get what you want then it definitely is beyond our means. Of course this excludes owning a house and unfortunately for us in this side of the world, a car.
- Buy a home as soon as we can afford it – Check. Why rent, if one can buy? Start small. Look for 0 downpayment loan. I did.
- Buy gold. – Uncheck. Too late for me now, with gold trading at RM200/gram. I pity young couples of today; it’s much cheaper and easier nowadays to just romp it at a budget hotel than to get properly married. I would love to rant about this but not today.
- Set aside 10% of our income for saving – Check AND uncheck somewhat. I set aside 5% of my income which I end up using anyway every 6 months. Oh well.
- Make sure we feed our family with rezeki halal. – Check. Well, at least I'd like to think that I tried my best. It is not always easy, because halal doesn't only mean consuming halal food, but the source of income must also be halal. Again, I’d love to rant but not today.
The absolute truth is that no amount of financial planning will deter you from whatever material things you desire. You may have a very detailed financial plans and goals, but as soon as you FEEL that you are able to afford a top-end smartphone you always wanted, or a fancy car you’ve been dreaming of, or a bigger home you feel most comfortable in, well, you most likely will get them regardless if you are barely able to afford them.
Najwa Latiff got it right. Otak kata jangan hati pula kata yaaa… The subconscious human mind always wins. And that’s a scientific fact.
Here’s a few cents worth of advice and points to ponder from one poor, sick and tired dragon that has been trying and failing to beat the system for 10 years now.
- People naturally tend to overspend if it means getting something they perceive to be better. Hence there will always be a smartphone with slightly bigger screen and processing power for JUST RM200 more. There will always be a car with better accessories and bodykits for JUST RM2000 more. There will always be a house with extra 200 square-feet of living space for JUST RM20000 more. If you can afford it, why not?
- There's a big difference between the haves, the have-nots, and the have-not-yets. In wanting something better, they are the same.
- Know and understand this when planning your finances: You WILL fail.
- You will not be able to avoid debt, but if you have to be in debt, go Islamic. And remember that the most Islamic thing to do is to settle off your debts as soon as possible. Try your best to be Syariah-compliant in everything you do, be it finances, investments, insurance, everything. Of course I don’t need to tell you to never skip paying Zakat. Or do I?
- To believe in Allah means that we must understand that all our fortunes are of His will, and everything that are ours are His to take back. So thank Allah.
- Stop caring. Even just for a little bit. Then you’ll see opportunities.
One can attempt to accumulate a million bucks for retirement at 55 years-old only to die at 54. Or one can spend on things all his life and die without a single cent at 80. Wealth, unfortunately, is subjective and heavily dependent on health. And death. Steve Jobs said it best, that he didn’t want to be the richest man in the cemetery.
Sorry there’s no motivational mumbo jumbo. If you need that, follow Fadzilah Kamsah. I’m ranting because after 10 years, I'm finally taking my own advice.
To stop caring. Well, maybe just for a little bit.
