Letter: Concept of saving money to buy what we want is lost on many

Editor: Although I’m not much of a movie buff, The Big Short piqued my interest, so I went to see it and thoroughly enjoyed it. This informative entertaining and thought-provoking film is based on the sub-prime mortgage crisis of 2008-09.

The slang term “ninja loan” was mentioned in the film which stands for “no income, no job, no assets,” referring to reckless lending.

Mortgages aside, credit cards, overdrafts and lines of credit have become the new norm. Because credit is so accessible and convenient, it is too easy to fall into the precarious scenario of spending more than we earn, which has the uncanny potential to spiral out of control.

Also, the “buy now, pay later” habit no longer carries the same stigma. There was a time not so long ago if you were broke you had to make do.

The good news is that many of us are becoming aware of the consequences of unchecked debt and are managing our finances in ways to avoid it.

I recently read of someone who, after paying off their car loan, continued making the same payments into an account in order to purchase their next car instead of taking out another car loan.  Another couple lived off one income for several years in order to pay down their mortgage.

One interesting tip is to cut back on discretionary spending, for example restaurants or non-essential shopping in order to create a fund for unexpected or occasional expenses such as car repairs, vacations or gifts.

Saving up for things we need instead of using credit is the best way to avoid getting trapped in the debt cycle.

It is such a simple and fundamental concept, but once put into practice is the key to financial security and peace of mind.

Michelle Matich,

Langley

Just Posted

Concert Series coming to Langley Community Music School

The Concerts Café Classico is returning to LCMS starting with a saxophone quartet on Oct. 28.

Sleep out aims to help homeless youth

Joseph Richard Group is fundraising for an annual sleep out to help youth get off the streets

Vaudeville keeps senior actors young, active

The Vaudevillians ready to storm the stage with ‘As Time Goes By’

Free ‘hoops’ fun brings Aldergrove youths together

Aldergrove Basketball Club revives the sport at Aldergrove Secondary

Aldergrove grad students prepare ‘spooktacular’ event

‘Haunted House’ event Oct. 27-28 will benefit Aldergrove Secondary ‘dry grad’

Fashion Fridays: You can never have enough shoes

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

Migrants, police mass in town on Guatemala-Mexico border

Many of the more than 2,000 Hondurans in a migrant caravan trying to wend its way to the United States left spontaneously with little more than the clothes on their backs and what they could quickly throw into backpacks.

5 to start your day

Man killed in shooting at Abbotsford bank, ex-Surrey cop to appear in court after Creep Catchers sting and more

Trump: ‘Severe’ consequences if Saudis murdered Khashoggi

Pro-government newspaper Yeni Safak on Wednesday said it had obtained audio recordings of the alleged killing of Saudi writer Jamal Khashoggi inside the Saudi Arabia’s consulate in Istanbul on Oct. 2.

Feds dead set against ‘ridiculous’ quotas to replace steel, aluminum tariffs

Donald Trump imposed the so-called Section 232 tariffs — 25 per cent on steel and 10 per cent on aluminum — back in June on national security grounds.

Campus brawl leads to charge against B.C. football player

Takudzwa Timothy Brandon Gandire, a 21-year-old defensive back from Vancouver, is charged with assault causing bodily harm.

Stadium vendor seen in pizza spitting video pleads guilty

The 21-year-old’s sentencing is Nov. 15. His lawyer has said he understood what he did was wrong and was remorseful.

Jury finds Calgary couple guilty in 2013 death of toddler son

Jeromie and Jennifer Clark were found guilty of criminal negligence causing death

Fed report to show $19-billion deficit in 2017-18

The deficit is slightly smaller than Finance Minister Bill Morneau’s prediction of $19.4 billion in last winter’s budget

Most Read