Advertisement Banner

When 47 pct have high credit card debts and 40 pct are spending beyond their means

When 47 percent of youths have high credit card debts and 40 percent are spending beyond their means. This is a very powerful sentence and it’s extremely worrying. Hope everyone really read this and understand the implications.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz shared that 40% of millennials are spending beyond their means and according to Bank Negara Malaysia, 47% of Malaysian youths have high credit card debts. He said, “So think thoroughly about what is necessary and prioritise your purchases, whether it’s a new outfit or new phone, or, like what one of my nephews wants, a PS5, and you will find that every ringgit will go a long way.” This is that full article: Article in

Many other good points pointed out as well. Tengku Zafrul said, “Warren Buffett famously said, ‘do not save what is left after spending, but spend what is left after saving’.

Tengku Zafrul said, for example, if a twenty-year-old wish to have RM1 million in savings by the time he or she turns 60, assuming an annual return of 6%, he or she would need to save about 500 ringgit per month.

He said according to the Employees Provident Fund (EPF), 50% of EPF members have less than RM200,000 in their accounts – lower than the average of RM240,000 that members should have in basic savings, when they reach age 55. To read the full article, please read here: Article in

Credit card can be a convenience and a danger at the same time

Credit card gives a lot of convenience. Carrying too much cash all the time is not a good idea especially when we travel. However, using it responsibly is not easy. It’s quite easy to spend above our means with credit card because we do NOT need to pay in full every month. Usually, the credit limit is also 2x or higher or our income which meant that the danger of overspending is amplified. There are also so many instalment plans where RM200 seems affordable but that’s for 24 months.

When we travel, we may not realise how much we were spending with credit card until when we receive the statement one month later. This is why we need to be responsible with the usage of our credit card(s). The question is, ‘would I finish paying it when the statement comes.’ If the answer is yes, then we could spend it. If the answer is no, perhaps think three more times, delay the decision for one more week. Maybe you actually do not need it.

Important reminder

We have many resources which we could refer to to manage our finances. For example, this is a website with a personal finance focus: We could also learn how to invest in stock market without all the speculative (earn huge or lose huge). Learn the basics from Do note that the views of these bloggers do not necessary represent views of but are good reference points. As for those who prefers to look at property, then do continue to read Happy leading a financially stress-free life.

Love news like this and more? Sign up for daily investment news updates.

Please LIKE FB page to get daily updates about the property market beyond articles. Else, follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Next suggested article: Seriously in debt? Majority are due to credit cards

**In Article Advertisements Banner

Leave a Reply

Subscribe to Blog via Email

Few seconds to subscribe for FREE and get property investment tips, latest financial and property news and more.

Join 2,827 other subscribers.
Motion arrow towards right
Motion arrow towards right
Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.


Advertisement Banner

Facebook Comment

Table of Contents

Most Recent Posts

join the family

Like us for daily investment news and more

Hit the like