It’s very important for everyone to have these: Earning, Saving, Investing and Preserving? (click to read) The reason is because habits die hard and once we have started spending more than we earn, trying to get out of the ‘debt’ hole will take a long time, if we ever got out at all. There have been many studies conducted to gauge if Malaysians have sufficient financial knowledge or even are currently saving enough for their future, especially when they retire. Here’s an earlier article: When should we think about property investment?
Article in edgeprop.my Credit Counselling and Debt Management Agency’s (AKPK) chief executive officer (CEO), Azaddin Ngah Tasir said that everyone should have a plan for their retirement as soon as they enter the workforce. He said that based on a study by Bank Negara Malaysia last year, about 57 percent of Malaysians have a good understanding on importance of financial stability. He said, “However, we believe that there is still room to educate the youths, especially on how to save according to their expenditure, as there are still many who do not have enough savings upon their retirement.”
HLB group managing director and CEO, Domenic Fuda, said based on a survey the bank had conducted in collaboration with iMoney, 75 per cent of the respondents rated their proficiency in financial knowledge as low or average, and 68 per cent believed they do not have enough savings in general. He said, “Most people think financial knowledge means knowing how to save and manage borrowings, but there is more to it than that. The sooner we grasp this concept, the sooner we can cultivate financially responsible habits which will enhance our future financial freedom.” Please refer to the full article in edgeprop.my here.
I think it’s super important to distinguish between understanding the importance of financial planning versus understanding the method on how to earn, save, invest and preserving all that we have. Savings alone used to be enough long time ago. Savings alone is no longer enough today. It’s all about staying well ahead of inflation and savings at best allows us to hedge against inflation. It means, nothing gained, nothing lost.
Thus, building wealth through investing is going to be the key to financial stability for future. Reading lots of articles about what financial freedom or independence as well as articles on how to invest, where to invest, what to invest will definitely help us to invest. Happy doing it and remember to share kopiandproperty.com articles too. Let’s help fellow Malaysians in their financial goals.
<Featured Image is courtesy of Stock Photos from Jaaak>
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