Prudence is essential for the effective management of resources. Reckless or extravagant management of resources often leads to borrowing and/or indebtedness. It’s not just lack of money that is the problem. Like what we are taught in economics about wants and needs.

In economics, a need is something needed to survive while a want is something that people desire to have, that they may, or may not, be able to obtain. Want is something that is desired.

In economics, It is said that every person has unlimited wants, but limited resources.

When there is reckless desire then borrowing and Indebtedness come in. Recklessness is exhibited with attitude and statements such as;

I want it.”

“I deserve it.”

“I’m not going to wait – I want it now.”

It is often said that attitude is everything, so we need to get the right one. When I was in senior secondary school my friends were already using android phones, so I had this reckless desire to buy an android phone by all means.

When I told my Dad that I wanted an android phone, he told me to wait till I finish secondary school.

My desire was not to wait – I wanted it immediately so I could belong to a group of friends that were using Android phones.

I later bought the phone from my brother, I told him I will pay later.

The phone fell down one day, and the screen was spoilt. Since I was trying to live a life I could not afford, I could not repair the phone and I was unable to pay for the phone. When you borrow to satisfy a want, you are simply digging a pit for the future.

Borrowing and Indebtedness often comes as a result of trying to live a life that you cannot afford.

Debt burdens have destroyed families. Debt burdens can cause serious long-term consequences such as mental instability, depression, health challenges, suicide attempts, or death.