It’s no secret that Malaysia’s young people are facing significant financial challenges. A staggering 75 per cent of them find themselves in debt due to the increased costs brought about by the post-pandemic landscape. Covering even the most basic expenses has become an uphill battle, and for more than 35 per cent of them, their savings can only sustain them for a mere three months.
These statistics are concerning, especially when we consider that life expectancies are projected to exceed 77 years by 2050. A survey conducted by Bank Negara Malaysia reveals that a significant 75 per cent of the population does not have a savings cushion of at least RM1,000 (US$239).
To navigate this challenging landscape, a paradigm shift is required — one that encourages financial literacy, responsible spending, and smart investment choices. It’s not about making things complicated but rather about making these financial principles an effortless part of our everyday lives. By doing so, Malaysians can seize control of their financial destinies, paving the way for a more secure and prosperous future.
A new path to financial empowerment
However, amid these financial challenges, a new narrative is emerging — a narrative that offers an accessible path to financial empowerment. This approach involves seamlessly integrating shopping, savings, and investing into daily routines, thereby promoting progressive saving behaviours among Malaysians.
Contrary to the common belief that achieving financial empowerment requires radical lifestyle changes, this approach encourages individuals to integrate shopping, savings and investing into their everyday lives. This alignment of financial activities complements daily routines and paves the way for a more inclusive investment landscape.
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One example of this transformative approach is the all-in-one micro-investing app Raiz. It provides users with a comprehensive way to channel their spare change into an investment portfolio made of unit trust funds for long-term investment.
Tapping into digital investment platforms
Imagine, for instance, purchasing a cup of coffee for RM5.80 (US$1.43) using your debit or credit card. The Raiz app tracks the transaction, rounds it up to RM6 (US$1.48), and automatically saves and invests your spare change of 20 cents into an investment portfolio.
Raiz breaks down the traditional monetary barriers to entry into the world of investing. With investment deposits as low as RM5 (US $1.24), Raiz ensures that individuals no longer feel deterred from taking their first steps into the world of investments.
Additionally, platforms like Raiz leverage innovative technology to offer user-friendly and intuitive interfaces. This simplicity makes saving and investing more accessible to all, regardless of whether you’re a novice or an expert investor.
Features like automatic roundups, recurring investments, one-time investments, customisable portfolios, and the ability to save and invest cashback while shopping online are all at your fingertips.
Even a fellow Malaysian who signed up for Raiz late last year managed to save enough for an iPad, thanks to the spare change they accumulated and the additional boost provided by Raiz’s recurring investment feature.
In conclusion, the financial challenges facing Malaysians post-pandemic are undeniably formidable. However, there are now powerful tools at our disposal to take charge of our financial futures. The misconception that significant investments require substantial upfront capital is rapidly eroding, making way for a more inclusive and accessible investment landscape.
As we strive to increase financial literacy among Malaysians, platforms like Raiz play a pivotal role in bridging the financial gap and helping users not just to survive but to thrive financially. Instead of discouraging people from spending, shopping has become one of the many avenues for sustainable and progressive savings and investments, thereby laying the foundation for a financially secure future.
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