Unexpected threat of finance
There are many people have their mindset to achieve the target of financing especially buying house, car, travel, education and so on. These would affect by several challenges that people could not make it for instance, unawareness of financial literacy or unappropriated circumstance, which was under the unexpected threat of finance. Thus, today we would like to encourage you related the unexpected threat of finance for your further guidance of study. What are the reasons? Where was lost? How many threats? These questions would assist you to be prepared and careful before it happened as follow:
+ Do not think of time for saving:
Several people pretended that saving is not hurry yet; the income shall firstly serve the happiness after that the remaining of income shall take into account for saving. However, this perception could not deposit in saving and moving forward to the target of financing or prolong to achieve the personal goal. Therefore, you should initially determine to have saving because it would be fast to success the target of financing.
+ Do not have money reserve for emergency:
The money reserve for emergency should not be underestimated when the unexpected events happened or emergency cases such as illness, accident, and healthcare and so on. Hence, this topic would suggest you to keep your money reserve at least six time of total monthly salary in order to prevent and secure to manage in case of unexpected events and affect the saving of your target.
+ Lack of manner for using credit card:
Many people use credit card daily. Thus, when you lack of manner for using credit card, it would increase your debt due to the fact that credit card facilitate payment that may forget to have a repayment, but you have to pay interest 20% per annual for remaining of unpaid amount. This would make you enter to the debt cycle and could not keep your money for other purpose.
+ Inappropriate or unawareness of investment:
Individuals intended to make a profit return, but do not study the information before investment or inappropriate investments that may led to mistake and loss in those investments that people had a target. Therefore, you should study the information before investment that could prevent the mistakes happened.
+ Misleading and timing of investment:
Besides the inappropriate or unawareness of investment, the misleading and timing of investment is another threat of financing. This would make the cause of unsuccessful of the financing target because the type of assets have the different risks and timing of investment and returns.


“The column for 10th year anniversary celebration”
(By: Lao Securities Exchange)