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Amended Action Planning - Winnie

Amended Action Planning - Winnie

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Published by: api-3828838 on Oct 18, 2008
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Consumer behavior in Brunei Darussalam

From results of our investigations in this project, we found most Bruneians, either save a small proportion of about B$100 or below of their monthly income or they do not save any at all. In addition, they do not have any idea where to dispose their unwanted items that they have bought. Those who earn a higher income tend to spend more than those with a lower income. As a result of this, the wealthier ones will spend more on goods that they usually do not use frequently.

During the Sultan\u2019s 60th Birthday, His Majesty had mentioned that\u2026\u2026...\u2026.
\u201cHis Majesty hoped the additional income would be used prudently and the
workers concerned would be able to save through financial planning\u201d.
(from BruneiDirect.Com)
Hence, to avoid the people of Brunei from overspending their income on
unnecessary items, a few desirable changes are needed.

Bruneians should avoid the debt trap. The concept of \u201cBuy now, pay later\u201d is becoming more popular nowadays. It enables the consumers to buy goods on credit. With the constant use of credit cards, you will eventually end up in debts. However, falling into debts is sometimes unavoidable if, for example, you want to buy a house or start a business. But still, such debts should be manageable debts.

To ensure that you never fall into the debt trap, you will have to learn to manage you finances. There are certain guidelines which you need to bear in mind so that you can be free from debts. Take note of the do\u2019s and don\u2019ts below:

1.Don\u2019t ignore your debt problems as this can only make the situation worse.
2.Don\u2019t live a B$50,000 lifestyle on a B$24,000 salary as you will find it hard to live
within your means.

3.There are always opportunities for special occasion spending. For example, consumers tend to feel guilty if they do not give presents to their loved ones. The more guilty they are, the higher the cost on the presents. To avoid this, it is necessary for the consumers not to do their shopping last minute, so they will not end up making expensive decisions. In other words, you should plan ahead so that you can set aside the money for the presents in your budget.

4.Don\u2019t be influenced by advertisements. It is better for you not to get hooked by the advertisements because it makes you spend more by falling into the trap \u201cBuy now, pay later\u201d concept.

5.Don\u2019t use the credit card for borrowing. A person buying on credit increases the cost of the purchases. The interest that accumulates each month adds to the cost of the purchase. As the interest continues to accumulate, the person will eventually find it difficult to keep up with the payments.

6.Don\u2019t buy on hire-purchase if you can afford to pay in cash. If not, you should save
until you are able to purchase it.
7.Don\u2019t buy a house when you just can\u2019t afford to scrape together the monthly
8.Think carefully first before signing on as a guarantor for someone else\u2019s loan as this a
risk which you may or may not ended up settling the debts.
9.Don\u2019t postpone paying your bills as this would accumulate more debts.
THE DO\u2019S

1.Do make a budget. Many people dislike making a budget as it takes up a lot of time and the person has to be very committed and disciplined. The basic rule of budgeting is that your income must exceed your expenditure. A person must have a positive and challenging attitude in order to succeed in creating as well as following the budget plan.

2.Do give yourself a treat every month. This means that you should put away some money every month. You might find it difficult at the beginning but you will soon be motivated once you see the accumulated money in your saving account.

3.Do avoid costly necessities. For example, a person will definitely feel happier by driving a B$50,000 car on the road rather than a second-hand B$20,000 car but the happiness could be of a short term if you fall back on your monthly instalments and your car is repossessed.

4.Do memorize the golden rule of borrowing.\u201cBorrow as little as possible and at the
lowest rates that you can find for the shortest possible period\u201d.

Beside avoiding debts, Bruneians should also save more money for their retirement, children\u2019s education, long-awaited holiday and future emergency fund, a sum of money readily available, just in case you need cash in a hurry. To achieve this, consumers should create their own monthly spending plan to budget their monthly income.Budgeting is not an easy or fun thing to carry out but it is very useful as it forces a

person to take a good look at his/her spending habits. Most people realized that their main problem lies in their living a B$50,000 lifestyle on a B$24,000 annual income. Hence, it is very crucial for a person to know what he/she wants. For example, do you want in a year\u2019s time to be out of debt, to have no financial worries or in five years\u2019 time, make a down payment for a house?

List out your goals and estimate how much you will have to save each year to achieve them. However, you are only to set the goals which you think you are able to accomplish it. This is because if you set your aims too high, you will end up very disappointed and may give up altogether. To reach your goals, you will have to spend less. But that doesn\u2019t mean that you will have to give up certain things. It means shopping around for the best bargain to trim your expenses.

It is wise for you to start now to draw up a budget plan. Here are some general
guidelines to follow:

1. The first step is you will have to know where you stand financially. To do that you have to know for a start how much money you take home each month. For most people, they are able to estimate it quite accurately with their fixed monthly income. However, for those people who has an income which is not stable then they will have to make estimates based on the past and adjust accordingly as they go along.

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