Financial Over-Indulgence: A Case Study Of Some Economic States In Africa

avatar

in-debt-2065875_1280.jpg

Source


Recently I was talking with @joetunex, and he made mention of something he called credit entitlement which is an opportunity for some South Africans to actually buy things and pay later when they're opportune to have a legible job and also Instalmentally too. When I heard about this, the first thing that came to my mind was abuse, and I wasn't totally wrong.

First and foremost this is a monetary scheme that should help people become independent... as in, depend less on government jobs, especially if there were limited jobs. However, I believe not setting a standard to this scheme makes it prone to abuse. One thing is, when you indulge people too much it takes away their fight mentality, and what do I mean by this?

The thoughts of plenty often makes people forget about the danger of scarcity. The availability of excess resources one day at a time makes people forget that the future can tilt anywhere, financially, depending on the choices they have made today. In Nigeria for example, a credit scheme as this would make more entrepreneurs and less job seekers, why do I say? One of the times a person becomes financial responsible is when you actually don't think you need to borrow a loan to eat, to clothe or to indulge in unfruitful miscellaneous.

A person who would borrow money to have a wedding is not financially responsible, this is because having a wedding party only takes out of your pocket and doesn't bring in anything into your pocket, it is why I'll rather choose to buy a second graded cloth that's very cheap, but buy the best when it comes to gadget like a computer. The former will outlast its use, the latter will perform functions that would eventually enrich me. So why choose to accrue a debt over a need that satisfies an ephemeral indulgence?


student-loan-debt-1160848_1280.png

Source

A friend in Botswana also told me about another monetary scheme that allows them to go to school on credit provided they could bring some legible documents. First, in this new age, I don't think anyone should be accruing debts to have a tertiary degree when they're not even sure of how they'll pay it back. I used to say it in the past.

Having a degree doesn't bring financially certainty having a marketable skill and knowing how applicable it is, is what eventually matters. This is another misplaced financial decision by a government trying to make it easier for their citizens to get education. But then if this was their aim, why not help them get rid of their debts, if they probably graduate for example, own their own business and also become a source of employment for others?

One thing I've come to know is that challenging people is better than indulging them. While the incapabilities of, for example the Nigerian government is challenging people to do better for themselves, the over indulgence of let's say the South African government is some of her citizens take the opportunities available to them for them. The situation in African is clear; foreign citizens are taking advantage of the South African economy to better their lives but then.

South Africans who owns these inalienable economics rights to these opportunities aren't putting them to good use. What the South African government could have done was to become a hub, an African-esque version of the United States. They could have given equal opportunities to foreigners to thrive while regulating them financially to become probably the richest state in Africa.


children-486979__480.webp

Source

But then, South Africa is probably becoming more difficult for foreigner to live in, because of economic restrictions. In a bid to incentivize their own citizens, they're shutting their door to foreign domination and providing less and lesser opportunities for them which would drive out of the country, but then this is blindly indulging their citizens rather than providing them opportunities.

Truth is, not a lot of South Africans are taking these opportunities, the economy is fairly good, and it's why you see so many countries, colors and race in the country. This is to continually prove that giving a person a chance doesn't solve their problem, giving them the right chance is what eventually matters. Having resources is not what makes you wealthy it's your ability to actually channel them productively, that's the true wealth




Interested in some more of my works?


Why Do Nigerians Choose To Dye Their Hair? (Feature Article)
How Life's Issues Prevents Us From Obligatory Priorities
A Sense Of Self Accountability: Why Minimalism Exceeds Beyond Spending Money.
A Taste Of You.... (POB WOTW) {An Original Poetry)
Causality & Common Sense: Some Answers To Most Plausible Questions?


IMG_20210621_075339_422.jpg


My name is @Josediccus, a young Nigerian entrepreneur who is a Vlogger, A Psychologist, Poet, Sports Writer/Analyst & Personal Finance Coach. I'm using my contents as a process to create shared meaning as well as create expressions through which people on/off hive can relate. I believe content is a process to be enjoyed and relished and I'm up for any collaborations in my field stated above. Cheers


@Josediccus, your brother-in-pen & heart


I'm hoping to reach more people who are broken at heart and spirit, so share on any platform or reblog


My Twitter handle

Posted Using LeoFinance Beta



0
0
0.000
12 comments
avatar

In a sense, you are right that such financial schemes only lead to an increase in the debts of the population, in the mass. On the other hand, for many individuals, this is the only chance to change their lives by getting an initial capital in an easy form. Probably, it would be correct to adjust the lending goals and help borrowers build business models when approving a loan.

0
0
0.000
avatar

This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating to @indiaunited. We share 80 % of the curation rewards with the delegators.

Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.

Read our latest announcement post to get more information.

image.png

Please contribute to the community by upvoting this comment and posts made by @indiaunited.

0
0
0.000
avatar

Buy anything you want now and pay later definitely sounds like a trap.

I remember when I was 21 or 22, a local bank gave me a credit card. Told me it will help me with my expenses. I can buy anything I want, and pay later. Maybe turn them into installments.

And I started overspending everymonth. Turning all of them into installments.
After a few months, the monthly installments were equal to my income.

It took me 2-3 years to get rid of the debt.
I am just glad that it wasn't too big and I was earning. Otherwise if I was unemployed at that time, I would be paying those installments maybe for a decade or so😵

0
0
0.000
avatar

It took me 2-3 years to get rid of the debt.
I am just glad that it wasn't too big and I was earning. Otherwise if I was unemployed at that time, I would be paying those installments maybe for a decade or so😵

At the end of the day it becomes an economic attempt at financial slavery, I wouldn't say south African had these intentions, the big techs in most country does, but then in the case of South Africa, the government felt that these credit opportunities will uplift their lazy citizens who would blame unemployment on lack of start-up fund for enterpreneurship.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Maybe not same intentions but maybe they have same results🤔

0
0
0.000
avatar

"Having a degree doesn't bring financial certainty having a marketable skill and knowing how applicable it is, is what eventually matters."
"Having resources is not what makes you wealthy it's your ability to actually channel them productively, that's the true wealth"

Perfectly penned!

0
0
0.000
avatar

Having resources is not what makes you wealthy it's your ability to actually channel them productively, that's the true wealth. - Such an important aspect, being productive. Truly liked your post. Financial over-indulgence is truly a downfall at the end of the day.

It feels harsh when even in this generation South African's are having to face so much so. Hopefully, vocalizing it all out and spreading awareness will shed some light, eventually.

0
0
0.000
avatar

There are good and bad sides to debt. If you are able to leverage it to get a good chance of earning money then it is good. But as you said, college isn't exactly the surefire way to get a high paying job so I am skeptical about getting student debt.

Posted Using LeoFinance Beta

0
0
0.000
avatar

We are leaving with a system designed to enslave us while some of us think we are free, having access to loans can be of good benefit, good debt or bad debt, it boils down to what we are actually taking that loan for.

For some it is a one way ticket to travel into debt without return. We are looking at a post you've put together which I will like to call the rat race.

The rat race is something we should try to exit but plunging ourselves into debt is definitely one way to work and keep pay that debt that will never end...

Posted Using LeoFinance Beta

0
0
0.000
avatar

Having resources is not what makes you wealthy it's your ability to actually channel them productively, that's the true wealth

Our main man Joe is suffering on many levels and the way businesses can not pay employees for months is criminal. This culture allows for the government to present predatory loans to its people. I thought the new government there was supposed to be more 'nationalistic' not turning all native south africans into debt slaves? Not surprised, when government is involved, anything its touches becomes a mess instantaneously.

0
0
0.000
avatar

not turning all native south africans into debt slaves?

I don't really think this was their intentions initially. These credits were like enablements to help people especially with things like unemployment rampaging. Maybe for startups. But from what I gathered it seemes a lot of them have turned these credit to take care of immediate needs like clothing and shelter which will intermittently turn them to debt slaves.

Posted Using LeoFinance Beta

0
0
0.000