YOUTH MONEY MANAGEMENT DILEMMA

Youth in the current era is certainly facing a money management dilemma, to save or to spend! Let us take a look at the past.

BEFORE
Youth of 30-40years ago think very differently. When they graduate with a degree and enter the job market, SAVINGS is their priority. They would take a walk or a bus to work. Owning a car is out of the question. It's not to say it is convenient back then, but it is all about the endurance they are willing to have for a better life. For those who can afford a car after 1-2 years working, buying a second hand car was their choice.

NOW
Youth these days love the word 'comfort'. They love to enjoy, life is short, so why not enjoy right?
When they graduate with a degree and enter the job market, SPENDING is their priority. They would quickly buy a FIRST-HAND CAR to work in the name of convenience. If there is no car, how am I supposed to work? HALLO~ To take a 20 minutes walk is out of the question... That is the difference! Youth these days would love to take a 'free loan' from the parents to pay for their car downpayment and instalment and not willing to sacrifice and save hard to give their parents monthly allowance. Yet alone their grandparents and relatives. To them, their personal well being COMES FIRST, others comes SECOND! Guess that tells of a person character isn't it?

CURRENT GENERATION HUGELY IN DEBT!
If you really think about it, most of the youth or rather working adult are hugely in debt. With tuition fees being so expensive, most of us take a loan whether its a loan from retail banks or PTPTN loan. Most of us will have a negative net worth (All personal assets minus All personal liabilities). Example: - RM48,000...

Yet, many youth opt for a first hand car when they enter the job market. The level of debt will just increase, never really putting a thought that 'YOU HAVE TO PAY BACK THE DEBT ONE FINE DAY.' They prefer comfort, convenience and lifestyle.

MATERIALISM
Happiness is based on the number of material possessions you had... this is what some youth thinks about. They go for branded stuff, thinking people will give them a good impression. There is nothing wrong to go for branded goods as long they could REALLY afford it. Lets be more personal... Imagine if you are heavily in debt, it literally means you still OWED people money. Yet, having a i-Pad 3 or i-Phone 4S is a must for you. In fact, you do not really qualify for these kind of gaggets isn't it? If these gaggets help you to make more money, then it is a good investment but if it is not, you are not making a wise decision.

SOLUTION
Having a different mindset. Always apply the strategy of DELAYED GRATIFICATION. It means you choose to sacrifice now (save and invest) to enjoy the benefits (large saving and investment return) later on. Be responsible in leading your life. Choose to donate and benefit one's life. Choose to travel the journey less travelled, and it will be a journey of a life time. A journey that is so meaningful and fruitful, that you will feel so proud of yourself every single day. That makes your loved ones feel proud.

Isn't that what you want at the end of the day?