Our 2026 resolution: Spend wisely

MALAYSIA’S economy is on reasonably solid ground for now. There are jobs available, shops are busy, people are travelling and cafes are filling up again.

But as we head towards 2026 on Thursday, it is worth remin­ding ourselves of something unfashionable: just because we can spend does not mean we have to splurge.

It’s easy to lose ourselves in spending sprees, especially during good times.

This is when a new phone is justified, a bigger car is fashio­nable and holidays are necessary.

With credit cards making it ­easier and buy-now-pay-later schemes softening the pain, debts would find their way in quietly, often disguised as convenience.

The trouble starts when it accumulates.

The cost of living in Malaysia has not returned to pre-pandemic levels.

Food is expensive now, as are many other costs, including insu­rance premiums.

Medical bills are rising while interest rates remain moderately high, which is hurting many with long-term debt.

At the same time, wages have not risen evenly.

Specific sectors in Malaysia are doing well, while others are barely keeping pace.

While things look good on the sur­face, many families are one un­expected expense away from trouble.

This is why restraint is a must.

As history has witnessed, economic comfort has often led people to make bad financial decisions.

When times are bad, people tend to be cautious; in good times, they overreact in the opposite direction.

Debt that looks harmless in good times can become a burden when credit is tightened.

With the global economy remaining uncertain, conflicts abroad not stopping and trade wars continuing to disrupt prices and supply chains, Malaysians must remain cautious in their spending.

Whether we like it or not, if the global economy is hurting, we will eventually feel the pain even if our economy is doing relatively well.

Now this does not mean that we have to stop spending – that would hurt our economy too.

But there is a significant diffe­rence between spending and splurging.

Spending replaces what you need, while splurging upgrades what already works.

Spending is taking a holiday you can afford. Splurging is committing to instalments, hoping future income will cover them.

While hope is comforting, it does not pay the bills.

As we move into 2026, it is good to reassess and reset our spending habits as part of our personal responsibility.

We must ask ourselves a few questions: Do we really need this now? Do we have enough cash to pay for it? If not, is an instalment plan justified?

Not spending unnecessarily is not a weakness; it is a sign of financial freedom, even with a modest savings balance.

It is better to have a household buffer than to carry debt that leaves us stretched, worrying about where the next expense will come from.

So before you tap “Pay Now” this weekend, it’s worth stopping to think – tomorrow is about being conservative and restraining ourselves today.