Anything can happen: Geok and Tan both say it is important for youth to account for emergencies.
PETALING JAYA: “Work a few years like most people won’t, so you can live many years like most people can’t.”
This is a mantra financial adviser A. Devadason has lived by, and it has contributed immensely towards his success in wealth accumulation.
Now, he hopes the youth of Generation Z, who are at the threshold of their careers, will adopt a similar mindset if they seek to grow their wealth for a secure and worry-free financial future.
He said with the rising cost of living, the main concern among young workers is their low income being insufficient to meet their needs.
“It is understandable that they feel this way as wages are indeed low for young workers aspiring to own a home or a vehicle when their earnings are barely enough to pay for their basic needs.
“There are two critical elements everyone should be aware of – know your ability to earn and your ability to control your expenditure.
“One way of increasing income is to have a second job or a side gig as they call it these days,” said the chartered accountant, who as a successful TikToker earns a side income from his video posts about investing.
He advised that it pays to be frugal when building a nest egg, opting for affordability rather than luxury.
Malaysia Literacy in Financial Education Association founder and president Amy Seok said for Gen Z youth, navigating financial stability in the face of rising living costs is crucial, especially when planning for retirement and savings.
She said it is essential for youth to create a realistic budget and track their income and expenses.
“Also build an emergency fund, aiming for between three and six months’ worth of living expenses. This can provide a cushion against unexpected costs and help to avoid debt.
“Tackle high-interest debt like credit cards by paying it off first to reduce financial strain.
“If you are on a student loan, look into repayment plans that fit your income, such as income-driven repayment plans.” she said.
Seok said youth should also start investing early by taking advantage of compounding interest, especially in retirement funds like EPF and PRS if they are self-employed.
Seok said by starting these practices early and being proactive about financial planning, Gen Z youth can build a solid foundation for their future, ensuring financial independence and security without relying on inheritance.
Life insurance planner Joel Tan said that while it is essential to save for the future, it is also prudent to give thought to unforeseen situations such as medical emergencies.
Tan said many Gen Z youth expect a balanced life of work and leisure, at times indulging in a lifestyle beyond their affordability.
“They love saying YOLO (you only live once) and spending money on liabilities and expensive holidays overseas.
“This is acceptable if they want to earn hard and play hard, but it pays to be prepared for what we cannot foresee. Accidents or medical conditions can change our lives overnight,” said the millennial.
