Food, shelter, income, and family are fundamental desires for every individual. However, due to harsh economic conditions, these goals seem distant for Millennials and Gen Z working adults today. Despite technological advancements, achieving a comfortable living remains challenging. To ensure better living conditions, we must first examine the issues plaguing today’s workforce, the costs associated with their goals, and the solutions they can pursue.
Rising Cost of Living
The cost of buying or renting a home has skyrocketed for many young adults. In Malaysia, rental costs range from RM1,500 to RM2,500 for high-rise and landed properties within the Klang Valley. Purchasing a home could double the monthly payments. Utilities can add another RM1,000 to monthly expenses. Even those living with family face increased costs for food due to price hikes in fertilizers, chemicals, land, labour, and fuel. Many Malaysian households need a combined income of RM8,000 to RM12,000 to scrape by, which begs the question.
Facing rising costs and financial uncertainty
Income and Job Opportunities
The average Malaysian worker earns RM6,590, but huge income disparities exist between industries, seniority, and age groups. The starting salary for most young graduates in Malaysia is RM2,500 per month, unchanged for over a decade despite rapid inflation. With an annual salary increment of 5%, a young worker might earn RM4,072 per month after ten years, leaving little room for love and family.
Family and Future
The high financial costs associated with starting a family deter many young couples from getting married and having children. Besides home ownership, the cost of tying the knot ranges from RM50,000 to RM120,000 for certain ethnicities in Malaysia. Raising a child costs between RM400,000 to RM1,100,000, making it clear why many young adults feel the odds are stacked against them.
The Way Forward
While the challenges are daunting, there are practical steps that young adults can take to improve their financial situation. Early and consistent investment in assets like stocks, bonds, ETFs, or gold can help build a financial cushion that grows over time. Enhancing skills and pursuing higher education also can open doors to better job opportunities and higher income.
On a broader scale, government policies aimed at reducing the cost of living, such as affordable housing initiatives and subsidies for essential goods, can make a significant difference. Employers can also play a role by offering competitive salaries and benefits that keep pace with inflation.
By taking proactive steps and advocating for supportive policies, we can work towards a future where Millennials and Gen Z can achieve their goals and enjoy a better quality of life. While the economic landscape is challenging, determination and strategic planning can pave the way for a brighter future.
