However, this does not mean that millennials will be forced to live in unfavorable conditions for the rest of their lives. Felix Neoh, Whitman Independent Advisors Sdn Bhd’s Head of Business Development said that this is not the case. Neoh, who has over 20 years of financial planning experience, explained that “Gen Y lacks urgency in preparing a budget to cover expenses, income, and savings. This has caused them to save by chance, rather than by choosing.”

Neoh said that millennials should not try to avoid the responsibility of budget planning, no matter how technologically-savvy or lifestyle changes they may face. While education is important, there’s a big difference between actually learning about something and actually doing it.

“Generation Y should be able to understand the basics of finance, given the fact that Malaysia still produces many business graduates,” Neoh said. Neoh said that even though they have the basic knowledge, many don’t know how to apply it to their personal money management.

Many are aware that they need to invest to increase their net worth. Many people don’t realize that they are unable to budget and save for investment.

If you are looking to maximize your hard-earned cash, investments can be a good option. It is important to review your budget before you invest. Here’s how to invest with only RM100.

1. List all of your income and expenses

If you want to avoid falling into the financial hole of credit card debts or bankruptcy, it is important that everyone has a budget.

You can’t ignore the importance of a budget. You need to keep track of all your finances and be able to review them periodically. This will allow you to monitor the pattern and ensure that financial planning is efficient. It is important to be realistic about your budget. Neoh advised that you should only buy what you can afford, and not rely too heavily on IPPs (instalment payment plans) via credit cards.

It may seem like a lot of work to track all your income and expenses on a daily basis, monthly, and yearly basis. But it will become a routine.

2. Automate your savings

Next, you must set up automatic savings on a monthly schedule. Neoh believes that money that isn’t in your account is money that you don’t spend. He said that although you might feel the pinch each month, you will at least be able see the results in a significant manner at the end.

After following the simple rule of saving automatically in savings, fixed deposit, or another investment vehicle, an individual must be flexible about adjusting expenses to suit his or her life.

People tend to save only the remaining amount at the end of each month after subtracting all expenses. However, it is better to prioritize savings and invest first.

3. Get capital starting at RM100

Once you have established a budget and consistent savings, it will be easier to track your cash flow and decide how much capital you need to start your investment. You can choose between savings and investment.

To at least combat inflation, make sure you invest in products that offer decent interest rates.

Neoh suggests that there are a variety of investment vehicles available for those with limited capital. They can invest as little as RM100.

The advantage Gen Y and younger generations have is time. They will be rewarded with compound interest if they start investing early. We have found that people who want to invest in the future are more likely to do so when they are older than 40. He explained that if you already know about compounding interest, it doesn’t matter how low the capital is as long as you have a long-term investment habit.

You will become calmer over time and you won’t make reckless decisions (decisions) about whether or not to invest in uncertain times. As long as your portfolio includes different products and you have a longer timeframe, you will be able look at the good times and not worry about the risks.

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