FMT speaks with four everyday Malaysians from different age groups to get their insights and learn about their experiences with money. Remember, though – if you are in doubt, always consult a finance professional.
Financial literacy
Lim Lay Hsuan, 42, wishes she had deepened her financial literacy at a younger age and learnt more about investment tools such as unit trusts and shares.
“There are many people making money from these. Back then, I chose not to invest in them because I didn’t have sufficient knowledge and, therefore, opted for more conversative options such as fixed deposits.
“Looking back, I see there could have been opportunities for me to diversify my portfolio and grow my funds better,” says Lim, who is a full-time caregiver and part-time digital-content reviewer.
She has, nevertheless, cultivated helpful financial habits such as using a monthly planner to track her spending.
“At the end of the year, I compile how much I spent and compare it with how much I earned,” she explains, adding that she also aims to save at least 40% of her earnings.
For the younger generation, Lim advises: “Don’t live on credit cards, spend within your means, and always save for a rainy day. It’s not worth it trying to ‘keep up with the Joneses’ as you’ll never be able to.”
Consistent savings
Elizabeth (not her real name), a 36-year-old who works in the marketing industry, wishes she had set aside a fixed amount of savings monthly.
Having such a nestegg would have come in useful when buying a house, during emergencies, or even for retirement, she tells FMT.
She shares that she only realised the importance of saving early when she began thinking about buying her own property recently.
“I would advise those in their 20s, or who are just starting work, to have a savings account that does not allow any withdrawals, with banking arrangements to transfer a fixed amount on a monthly basis,” she says.
Also: clear off your debts. “It’s better to pay for a house loan than to have to settle outstanding credit card payments from buying luxury items,” she adds.
Planning for retirement
Saving up for retirement is something Prince Raj, a trainer and consultant, also wishes he had done when he was younger.
“It’s something many of us overlook and take for granted,” the 46-year-old says, adding that he is grateful he is still able to comfortably retire thanks to his investments in unit trusts, a financial tool he was exposed to at his previous companies.
“It’s great as a form of future retirement savings for those who have just started their careers,” the former unit trust advisor says.
“Start a monthly investment plan and be highly disciplined to contribute to it.”
Prince also applies the “Kaizen method” when it comes to savings, which is to implement small changes to achieve a desired goal.
“Even if you save as low as RM100 a month, it will grow over time if you do it consistently,” he explains. “These funds will be very helpful when you can’t work anymore.”
He further stresses the importance of taking out medical insurance while you can.
“The younger you are, the cheaper the premium. You don’t want to get sick one day and have to use up all your hard-earned savings to pay for your medical expenses.”
Never too early to learn
Fifty-nine-year-old marketing manager Deborah (not her real name) wishes someone had taught her about money when she was young, and believes parents should involve their children in money matters from a young age.
Over the years, she has come to value important financial habits such as having emergency funds. That way, “in case you lose your job, you can still take care of yourself financially”, she says.
She adds that married couples should work together to plan their finances, while those who have major debts should aim to clear them as soon as they can.
“Other than a mortgage or a hire-purchase, one should not have any other loans. Work hard, have a budget, and spend wisely,” she concludes.