There was never more month at the end of my money. I didn’t have much, especially when I was younger and just starting out on my own, but I had enough to see me through to the next few salaries. Every month, I saved a little and then some, particularly, for rainy days.

It wasn’t difficult because I didn’t want what I couldn’t afford. It didn’t bother me what others had. I didn’t have to own the latest or trendiest. I didn’t do ‘buy now, pay later schemes’ especially for electives. For instance, I didn’t/couldn’t go on a holiday, much less enjoy it, if I had to pay for it plus interest for months after I’ve had the holiday. Don’t get me wrong, I shopped, went to clubs and cinemas, enjoyed a holiday or two, ate out with friends and colleagues, while I paid monthly rent/mortgage, credit card, and hire-purchase payments. I still shop, online and offline, and eat out almost every night with my husband.

Truth be told, I’ve had my fair share of silly impulse purchases that I’ve regretted many times. The one that irks me till today is that beige soft corduroy backpack that I bought for work. Yes, beige and corduroy. Who buys a lame bag like that for work? It made a dent in my savings, and got smudged with black ink almost immediately.

Thankfully, all through my working life, I saved enough and earned enough to pay for things I wanted, and settled outstandings on my credit card. The full amount, not the minimum, as I begrudge paying the 18% interest. I’m totally averse to instalment payments because of the added costs incurred. Even now, I am constantly looking for deals, discounts and on-going promotions.

And, I have my dad to thank for this. No, not because he was careful and a good money manager. Just the opposite. He had too much month at the end of every month. Despite a comfortable monthly salary, there was no or not enough money. There was no plan or a budget. There were no regular allocations for utilities, household, school, or health expenses. I remember there were basic necessities. But no extras. No latest toys or games. No scheduled holidays except ad-hoc or essential visits to relatives’ homes, mainly in Penang.

I also remember it didn’t seem/feel like a big deal or a hardship back then. I think it was because I was very young, and growing up in Alor Setar, I didn’t know any better. Plus, there were no mobile phones or computers or internet or Google to google celebrities and influencers, recommendations on fashion, cake shops/restaurants and holidays and/or where to buy the coolest gadgets and cutting-edge appliances. Nope, nada.

That said, there was always food on the table, and a roof over our heads. My mum and I, before I started Standard 1, went to the wet market every morning to buy fresh produce. She cooked/baked, and we ate at home. And, all of us got an education. Which, at the end of the day, was/is what helped us get to where we are today. I guess to be fair to my dad, he had a big family to manage – a wife and seven children. Why seven children, a story for another day? Yes? Maybe? 

It’s not a complaint against him but rather an observation and lesson of how he dealt with money as do different people, and how their actions or non-actions or reactions affect the well-being, opportunities and growth for others. My parents’ household ran on a deficit. Expenses including debts/loans were more than earnings. And, there was only one income. So how did he/we manage? Hmm.

I didn’t know this. ‘In Malaysia, an acceptable Debt-to-Income (DTI) ratio is 30%. Anything over means the loan applicant is high-risk.’[1] Meanwhile, ‘the local household debt-to-GDP ratio remained stable at 81.9% in 2023. The median DTI ratio for overall households had been broadly stable at 1.4 times or 25% amid sound lending standards maintained by banks.[2]’

These I found interesting. Further afield, ‘a comparative study on 33 countries found Denmark, Norway and Switzerland had the highest household-debt-to-income-ratio at 252.18%, 246.79% and 227.41% respectively.[3]’ Countries/governments also borrow money for various reasons. ‘Based on the gross debt-to-GDP ratio of 20 advanced economies analysed in 2023, Japan owed the most at 255%. Greece and Singapore were tied at 168%, Italy 144% and the US was 123%. [4]’ High debt, yes. But it also depends … on factors like the households’ sustainable expected earnings, and the countries’ economic growth rate, strong institutions, effective/stable policies, and debt interest rates. Malaysia’s debt-to-GDP ratio is over 60%.

On a micro level, my long-standing rules/lessons were/are quite simple. Don’t spend more than what I earn/have. Save to pay for expenses, and unforseens. Avoid/minimise debts/loans. Waste not. Want not.