Wise spending is good for citizens as for governments
By Petrus Haikela Hanghuwo /
It’s not only ordinary citizens that overspend or spend money on unnecessary goods and services, but the government as well.
This is because the individuals who stand to become leaders of government institutions are also part and parcel of the society. They are individuals who have families and houses and they are an integral part of households across the nation.
And the habits they display at household level become the same habits they bring at the government offices where they work.
This is why over-expenditure is common in government institutions as it’s the case in households.
Of course household spending is encouraged to boost the Gross Domestic Product of the country, which is a vital goal for economic growth; but it’s also equally important to mind about the adverse impacts of reckless handling of money, especially in holidays and festive seasons, and also on events such as weddings and funerals.
Here is a suggestion on how one can deal with transitions caused by financial indiscipline. Budgeting and sticking to your budget is the best way of handling your finances in a responsible manner.
Planning on your future earnings and spending helps to manage your finances in the future. Example, the dudes who work in construction companies, it is observed that, they are mainly obsessed with earning any amount and spent it wholly.
This tendency breeds another extra poverty gap. Instead of spending wisely, even to take time to think of how hard it has been over time to come up with the little that came up, with the little that came up, dudes spend like there’s no economic life after the night.
When the sun rises on the next day, there is nothing. Penniless!
Young graduates who have just gotten a job are also known to be some of the best reckless spenders.
In the economic world, Gross Domestic Product (GDP) in either country is an integral economic indicator of the wealth of the country that increases with spending by households. But reckless spending is not encouraged.
Spending is like driving a car; good spending habits will take you far just as good driving skills will take you far, but reckless spending and reckless driving will not take you far.
It’s not how much you earn that matters, but spending wisely is the one thing that creates strong financial foundations for individuals, households and governments alike.
– Petrus Haikela Hanghuwo is a young economist graduate of the University of Namibia, specialised in business and economics teaching (2020).