According to TIME magazine, millennials will have more consuming power than any other generation by 2017. It’s no wonder experts are urging them to care more about their finances earlier! However, Malaysian millennials may not be that financially conscious.
Well, we’re here to change that mindset with five reasons on why if you’re a Malaysian millennial, you should start caring.
1. COMPOUNDING INTEREST
Compounding interest might not seem like a problem now, but as your worries lessen, the return increases. While you are prepared to leave this problem for your future self, your current self is accumulating interest in an ongoing circle that has no way out.
Maybe that’s a little extreme, but we’re saying it’s possible. When you don’t take preemptive measures at a younger age, you risk facing a financial crisis in the future.
2. HIGH UNEMPLOYMENT
The unemployment rate in Malaysia has increased in 2015 by 0.1% and hitting 3.2%.
While this might seem low, we take into account that the definition of unemployment refers to people who are searching for jobs.
Bringing things into perspective; 3.2% of unemployment concludes that out of the 29.72 million Malaysians, around 950 thousand are unemployed.
3. MASSIVE STUDENT DEBT
You constantly think about how you have to pay the PTPTN loan and whining does not solve the situation! What would help is actually putting all those money you collected from Chinese New Year, Hari Raya and Deepavali into good use by storing them into a bank account to gain (even though it’s peanuts) interest! Also, planning your finances well will save you the misery of slaving to pay off your loan.
4. RETIREMENT SAVINGS
Retirement seems like ages away, but sooner than later, you will find yourself ready to retire, but having no savings to support you. What do you do?
Whether it is through EPF, pension plans or even investing, saving for retirement is one of the best plans for your future. Save yourself the tragedy of being homeless.
While most of us assume that once we grow older, the more matured and responsible version of ourselves will to take care of matters such as financing. But we forget that old habits die hard. Therefore, ensuring that you start your financing habits at a younger age can make handling similar matters in the future a breeze.
6. FINANCIAL EMANCIPATION
As a young adult, financial emancipation seems like a dream. You no longer depend on your parents’ for money and will finally have the freedom to manage your finances.
But if you do not take care of your finances at an early stage, you might never become financially independent.
As the famous Malay proverb goes, “Sikit-sikit, lama jadi bukit.” Which means every little thing counts as they will eventually amount to something substantial.
Save up now to avoid crying later.
News source: (Coffeeticks/Nora Ebait)