Irresponsible Spending

The last few years, I’ve been involved in helping one of my relatives with their spending habits outcomes.


RM 100K+, consisting of:

  • car loan RM 45,000+
  • credit card loans RM 39,000+
  • personal loan RM 28,000+

This is on top of their student (PTPTN) loan, daily spending etc.

I can’t tell you how vicious is this cycle, because…having such a bad loan, they can only try to loan more money from family, friends, institutions in order to pay of the minimum, but barely.

And it’s so vicious, because they feel so bad, they think/feel that they need to feel better, so they spend what little/nothing they have left, and that brings them deeper into debt.

To make matters worse, they couldn’t secure or keep a stable job.

Yep – imagine the horror.

vicious debt cycle
As they start to break psychologically, they feel the need to relieve their stress, so they justify adding a new debt…then they take on the new debt that they actively sourced…and then they think “shit” and feel bad, and feel more stress…and the vicious cycle goes on.

In between interviews and jobs, they turned to doing Uber, and even that, is on an ad hoc basis “because there are good times to work and bad times to work” on Uber.


They don’t cover their loans, expect others to chip in.

After trying to help solve this problem for some time, one day, they used their mobile phone account to buy credits on Steam wallet and iTunes. When prompted they replied they did that because “they were bored”.

Annoyed, told them that wasn’t a smart move, and they asked me

Nigel, are you mad at me because I spent some money?

I said, I don’t mind spending if one earns more than what one spends.

But clearly, they don’t understand this basic concept, and that’s why they’re in that situation right now. (To put things in context, despite having RM 100K+ debts, they can choose to leave jobs or not worried about getting jobs because the job was bad – like the debts wasn’t worrisome).

This relative of mine had always pursued “societal riches for sake of flaunting” eg they would aim and actually buy luxuries like:

  • BMW cars
  • Expensive watches that are five-figures
  • Going to restaurants
Read Also  What Is Good Success?

And using the famed credit card and loans that obviously shouldn’t be done if one cannot afford it.

This is a very clear case of irresponsible spending that leads to bankruptcy, no assets and no money. A very sad state of living.


They don’t get this fact: buying luxuries directly from one’s loans and income is very limiting, because it’s limited

  • to how much one actively earns
  • how much one saves
  • how much one is able to save after deducting such loan/credit costs
  • and the problem if one loses their job

That’s why I highly recommend that assets pay for luxuries and lifestyle.

Two different examples:

#1 A takes home nett RM 10,000 per month, but spends it all on food, credit card loans, personal loans, car loans etc. At the end of every month, he has a car, some nice toys – but reality checks in, and he knows that he is actually very, very broke. All he does is work in hopes/looking to his next paycheck so that he can pay his bills and maybe eat something “nice”. If he loses his job, he’s in deep trouble as he has years of bills to pay for the toys that he had bought in advance.

#2 B takes home nett RM 5,000 per month, and she decides to pack aside RM 2,500 a month to dividend stocks/index funds/fixed deposit, which gives her back a fixed 5% per year. She does this for 5 years, and she realizes at the end of the 5th year, due to compound interest, she had amassed RM 212,345.83. She then decides to take half of the 5% dividends, which translates to RM 5308.65 per year to spend on whatever she wants – guilt free. AND SHE KEEPS HER ENTIRE PRINCIPLE AMOUNT and still gets to reinvest the 2.5%.


Which do you think is more sustainable?

Well, obviously person B’s approach.

Related Posts

Solo Build It Versus Self-H…
Can’t stand the manifestation…
Passive Income, Busin…


Hang around here for some time, you’d see that I don’t well with hype or bullshit. I can smell that typically a mile away, and I hate that shit too.

I’ve been working on myself and on for years, since 2006, and only in late 2019, I started to focus on intuitive and loving leadership, entreprenership and personal development.

Here are some areas that I work on a consistent, ongoing basis.

Back To Home / Main Page

See the Tools & Resources I use to improve my life, businesses, health, build passive income and more.

The core topics I cover in is:

  1. Eternal life and salvation: Jesus Christ is the Way, the Truth & the Life
  2. Fix your health: get healthier, live longer, run faster, more energy, fuck more
  3. Passive Income Lifestyle: Become financially secure by building assets that provides multiple streams of passive income that’s more than your living expenses
  4. Personal Loving Relationships: Attract, build and grow relationships you love
  5. Philanthropy: giving to the poor and needy
  6. Philosophy: Conscious, purposeful and positive living
  7. Productivity: How to become more efficient and productive in important things. Mastering them causes you take less them whilst increasing productivity.
  8. Insure yourself and your loved ones (Health insurance is important)
  9. Add-on Adventures: Become rich and wealthy
  10. Add-on Adventures: Build businesses that add positive value to your society and life
  11. Success Principles

Take action TODAY: One year from today, you’ll be one year older. What would you have done by then?

Where To Next?

  • If you’re new here, do subscribe to my newsletter – no spam and just my best stuff. Unsubscribe anytime.
  • Go to the Start Here it’s created to be my good success and life thesis, so it’s very content heavy (Read: lots of words and links to resources, write ups and videos). It’s constantly updated too with new data and updates as often as I can.
  • If you like videos, head to All Videos – all the latest (and all) videos are uploaded there.
  • Visit the Blog to read the latest articles and videos. You can see all / my entire list of previous articles here: Archive
  • Head over my Resources page to see the curated products and services I use / have used to improve different aspects of my life be it business, relationships, health and more. Note: recommendations in may be affiliate links, which means I may get paid if you choose to buy through my affiliate link.
  • If you’d like to ask me any questions, head to the Questions/Ask Nigel section
  • Contact me if you like to thank me for helping you in some way (please, always tell me – it’s such emails that I truly look forward to), interview me, ask me to try a product, or media inquiries.
  • If you like my work and want to support me / my cause by giving a tip / donation or choose to buy stuff at my products and tool page – thank you for your support. You keep me going.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.