How to reduce debts using the radio approach...

This story happened in year 2013, when someone was persistently exploring to reduce their debts - this is mainly referring to the use of credit card. At that moment, applying some financial techniques consistently learned from various methods available on the internet is a norm; not doing it is a taboo.  But still, knowing the technique, but you are still the one who are struggling very hard to solve that financial management issues. I am pretty sure many people (even until today) are wrestling their arms to fight and looking for solutions to the problem (of reducing credit card debts). Sometimes, it's like a daily chore that many of us have to think on how to reduce the debt. Some have tried to cut their cards into two pieces, some are just throwing it away while some are principally 'holding breath' from looking at the bag, luggage and so on that comes with the promotion of the card. Impressively amazing, some may have successfully cleared off the debts; not for the first time - but twice, thrice and so on and on and on....

Despite the fact that many are trying very hard to control that, limiting the usage are getting harder and harder especially during internet age; where most usages are virtually on  the net. We might not holding ourcredit card physically but we definitely can make purchases online. It is not only that, while we are hoping that our saving funds would help us during rainy days, but with the scarcity of the fund, we might end up relying to the credit card as it will give us the fastest and immediate fund; ready to be consumed. Caught in an emergency situation where cash are need instantly, it is hard to stop ourself from using credit card back but hey at least, it is used for a better cause. And if we are prudent enouhg, we might have less troubles to settle the credit card charges 

Radio approach 

Why this is called as radio approach?. Practically, there are no specific reason but how it emerged is quite classic. There is a time where I am driving back from office, I was actually thinking and looking for answer on how people could reduce their debts (especially credit card) effectively. Somehow, when I am listening to the radio at that time, there is this program (which i forgot the program name, the radio station and indeed the name of the invited guest).

The guest was invited to talk about managing financial and was asked by the deejay on how people could reduce their debts effectively (especially credit cards). The guest gave 2 options which are:   
  1. increase our earning 
  2. control our spending

When the guest was asked again if there are other solutions that can be used , and the guest said NO. So guys out there, if we want to improve our quality of life, reducing the debts that are currently burdening us; keep it up, work hard. Increase our earnings regardless if it is small earning or else. Even a ringgit will give a diiferent. "A penny saved is a penny earned".  

Control our spending. Listen to this story of a guy who earns RM5,000 a month and RM15,000 a month.
From our bare eyes, the one who earns RM15,000 a month is considered as lucky because they are having more earning than the one who earn RM5,000 a month. But will it make difference if the guy who earns RM5,000 a month only spend about RM2,000 a month (leaving them with an extra of RM3,000 a month) as compared to the guy who earns RM15,000 a month but spend about RM14,000 a month (that will leave them with only RM1,000 a month at hand). It does not matter how much you earn, but it does matter on how much you spend it.

Finally, do not forget to save as well. So, why people need to save money and despite the regular spending and earning.. how do we save wisely? Soon in the next article....