Resist falling into debt, invest

SPEAKING on Breaze FM last Saturday, National Union of Private Educators of Zambia (NUPEZ) advised teachers not to live beyond their means so that they do not end up being trapped in debt.
NUPEZ Eastern Province coordinator Paul Mazunda said there was no need for teachers to incur a lot of debt since their salaries were enough to meet their daily needs.
“Some teachers have become highly indebted because they are introducing certain things that can’t be sustained with their salaries, therefore, subjecting them to abject poverty as they can’t manage to pay huge debt,” he observed.
Basic Education Teachers Union of Zambia (BETUZ) in Eastern Province had similar concerns.
Eastern Province BETUZ director Simon Bota advised teachers in the region not to spend more than they earn, saying overspending by most teachers pushes them into borrowing beyond their capacity to pay back.
He advised that everyone has a limit on how they can spend depending on how they earn, saying there is no need to spend more than what one earns.
The advice from the two union leaders is indeed timely.
The problem of indebtedness among teachers and indeed other salaried workers is rife.
Even though the advice from the two union leaders was directed at teachers,
the counsel being provided can be applied by all salaried employees.
Even though the problem of debt among salaried workers seems to be more prevalent among public sector workers, it cuts across all sectors.
The story of the 32-year-old teacher at Lundazi’s Mwase Day Secondary School who allegedly committed suicide due to the mountain of debts he found himself sitting on is a wake-up call to both teachers and other workers on how menacing this problem can be if it is not dealt with early on.
The fact that most workers have debt problems cannot be gainsaid.
There have been calls by union leaders and government officials on the need for workers to live within their means and not borrow beyond their capacities to pay back.
Living within one’s means is one of the most basic principles of financial literacy and it is a principle that anyone who hopes to do anything meaningful with their earnings ought to learn – and learn fast.
Spending less than what one earns keeps one out of debt and ensures more control over one’s future.
The practice of thrift should not be discarded. It must be embraced.
Money and goods should be used in a prudent manner to ensure that as little as possible is wasted.
The law of financial freedom is simple. One needs to spend less than their earnings. It is the only way that guarantees surplus.
Salaries should not be taken as the alpha and omega of one’s earnings.
They should be considered as the most basic of earnings – one that can be used as a springboard for investment and more earnings.
A salary must be considered as a seed – one that must be planted in order to ensure further yield.
The problem that we have among many workers is the lack of frugality and industry.
Most workers are focused on spending rather than investing.
Investing is the only way that guarantees the worker long-term financial freedom.
The temptation to borrow is always there but it must be resisted.
There are many financial institutions clamouring for those on steady monthly incomes to go and sign up loans.
They have all sorts of attractive packages but their ultimate goal is to get a piece of the worker’s salary.
From the outset, it may seem as though the monies being borrowed are small and easy to pay back.
But over time and consolidated, the seemingly small debts can easily transform into insurmountable debt mountains that leave victims destitute and in a vicious cycle.