How debt begins.

Byline: Yap Ming Hui

EVERYBODY wants to achieve financial freedom for themselves and for their families. Nobody intends to get into debt, but at some point in life, you may turn around and say, "Gosh, how did I accumulate all this debt and liabilities?" I can assure you that it all starts very innocently.

We start life with a clean slate. In fact, I always advocate that we are all meant to be financially free.

But then we make mistakes, or fall into traps, and the most common is committing to a lifestyle that is beyond what our income can afford. We spend more than we can afford to. And that's where the debts begin.

Let me share a great example with you. Gina is 25 and lives with her parents. She earns RM24,000 a year. Her parents cover her basic living expenses although Gina chips in RM500 every month. …