MANY young adults in their 30s and 40s are facing financial difficulties due to various factors.

Some struggle to make ends meet because of reckless spending, peer pressure and living beyond their means.

A lack of self-discipline in spending, prioritising wants over needs and poor financial management are among the most common causes.

Additionally, limited financial literacy, combined with costly lifestyle choices, has pushed many young individuals into financial hardship.

Credit cards have enabled young people to spend beyond their means, resulting in them accumulating debt.

Spending habits have shifted – while people once spent only what they could afford, many today rely on borrowed money without hesitation.

The young adults must be discerning and responsible in their use of credit cards and other borrowings.

Credit card debt has been identified as a leading factor contributing to financial struggles and even bankruptcy among young people.

Late credit card payments and high interest rates can quickly trap them in a cycle of debt.

Young adults need to understand that a credit card is a payment tool for convenience and not a means to spend money they do not have. They should make purchases only when necessary, and not to keep up with appearances.

In today’s materialistic society, many individuals buy things they do not need with money they do not have, just to impress others they barely know.

A smarter approach is to earn before you spend – not the other way around.

Credit cards should not be easily accessible to everyone, and the minimum income requirement for owning one should be increased.

Additionally, individuals should be limited to a single credit card to prevent excessive debt accumulation.

Many young couples also spend lavishly on extravagant weddings, lavish honeymoons and costly overseas trips, starting their marriage in debt. Loans come with interest, and juggling multiple repayments can quickly become overwhelming, increasing the risk of financial instability and even bankruptcy.

Young adults should practise prudent spending and start saving. They need to be equipped with financial management skills to effectively handle their finances.

Malaysians facing bankruptcy should seek guidance from the Credit Counselling and Debt Management Agency to find viable solutions and prevent prolonged financial distress.

With the rising cost of living, young Malaysians must manage their finances wisely by creating a monthly budget and ensuring they live within their means.

They should identify their fixed expenses, such as car and housing loans, as well as
variable expenses like utilities, fuel, repairs and medical bills.

Discipline and financial maturity are essential in managing income.

Financial literacy will equip young adults with the knowledge to understand the value of money, the importance of budgeting and saving, and the need to avoid unnecessary expenditures. It is the key to preventing bankruptcy among young individuals.

Many financial struggles can be avoided if they make spending decisions based on logic rather than emotions.

Samuel Yesuiah

Seremban