First job, first salary: make your money count

For those just beginning their careers, mastering budgeting and saving can create a solid financial base. Entering the workforce can feel liberating, but rent, transport, and loan payments can quickly deplete even the most generous salary. To strike a balance between enjoying life and building financial stability, a budget can be a helpful tool. Licensed financial planner Rajen Devadason suggests a three-tier approach: saving and investing, practicing generosity, and living on the remaining amount.

The first step is to "pay yourself first" by setting aside a portion of each paycheck for savings and investments right away, rather than waiting to see what's left at the end of the month. Automatic transfers and separate accounts can make this a consistent habit. The second tier involves charitable giving, while the third covers everyday expenses such as food, fuel, and public transportation.

Devadason recommends setting aside a portion of income for parents, student loan repayment, and occasional treats, starting with 1% to 3% of take-home pay and gradually increasing as income grows.

An emergency fund covering three to six months of living expenses should be a priority, based on monthly expenses rather than income. While generous EPF contributions are beneficial, Devadason warns against overdoing it, as much of that money may not be accessible in emergencies. Learning to grow your money is the next step after building savings, as simply saving without understanding investments can be counterproductive.

Managing money wisely also means being mindful of purchases. Splitting the cost into small installments can make a purchase more appealing, but those payments can eat into future earnings. According to the finance ministry, Malaysians aged 30 and below made 65.9 million BNPL transactions worth RM5.4 billion in the first half of the year, with RM2.4 billion in outstanding financing and 4% classified as non-performing.

Devadason's concern is how future repayments will be met, urging careful consideration of the impact on tomorrow's budget.

Delayed gratification is key, postponing some pleasures today to enjoy better experiences later. This doesn't mean skipping every celebration, but rather balancing enjoyment, savings, and investments. For every salary increase or cleared loan, Devadason suggests dividing the extra money into three categories: enjoyment, savings, and investments. Finally, young workers are encouraged to invest in their own growth by focusing on learning and personal development in their careers, turning themselves into lifelong learners.