10 Financial Tips I Wish I Knew In My 20s

Aren’t our 20s the best? The age of independence, adventures and well, let’s be honest, a lot of financial facepalms! For a lot of us, our 20s were a blur of late night parties, last-minute trips, impulsive shopping sprees and quite a few “I’ll deal with this later” moments when it came to money management. A decade and a half has passed by and now me and my friends have realised that the financial decisions we make in our twenties can set the foundation for our 30s, 40s and beyond.

If I could go back in time and give my 20-something self some advice, here are the 10 financial tips I wish I had known — and that I now tell every young Malaysian I meet.

1. Don’t wait for something big: Start saving now, even if it’s small

If you are anything like me and in your 20s right now, you might think, I’ll save when I earn more. But the secret is: it’s not how much you save, it’s how early you start.

Even saving RM100–RM200 a month can grow into something meaningful over time thanks to compound interest. Open a high-interest savings account or a fixed deposit, and automate your savings so you don’t even have to think about it but don’t wait for the next job switch or salary jump, start today!

2. Build and maintain an emergency fund

Adulting is hard and while money can’t buy happiness, it can buy a lot of things in life that bring said happiness. Plus, if there’s one thing adulthood will teach you, it’s that emergencies will happen — car repairs, medical bills, sudden job loss.

Aim for at least three to six months’ worth of expenses set aside in a separate account. For Malaysians, that’s typically RM10,000–RM20,000 depending on your lifestyle. Trust me: future you will thank you when life throws a curveball.

3. Understand EPF and do not touch it

Your EPF (Employees Provident Fund) is not your holiday fund. It’s your retirement safety net.

Many young Malaysians are tempted to withdraw EPF savings for buying a house or starting a business, but every ringgit you take out early is one less ringgit growing quietly in the background. Let it grow — EPF’s steady 5–6% annual returns are better than most fixed deposits.

4. Budgeting is a must, make it a habit

Use apps like Mint, Spendee, Mytabung to track your expenses and break them into labelled categories like needs, wants, savings and investments. Make budgeting a habit, it will help you manage your money better and more efficiently. One of the popular rules to get started can be the 50/30/20 rule: 50% on essentials, 30% on fun, 20% on savings/investments.

5. In your 20s, how many credit cards do you really need?

Credit cards are convenient and every bank is trying to sell you one- but ask yourself this: how many credit cards do you really need? Remember, credit cards do not mean free money. USe them wisely and always pay your balance in full, never just the minimum. Malaysian credit cards charge eye-watering interest rates — often 15–18% per year. One month of “I’ll pay later” can snowball into years of debt. If you’re tempted to swipe, ask yourself: Would I still buy this if I were paying cash?

6. Like saving, start investing early too

Investing money may come across as an intimidating concept when you’re younger but today there are enough resources available online to help you understand the basics of investing. You don’t have to be a finance guru to start investing. Malaysians today have access to low-cost, beginner-friendly investment platforms like robo-advisors (StashAway, Wahed, BEST Invest) or unit trust funds. You can start with as little as RM100. Remember: investing beats saving over the long term when it comes to beating inflation and growing your wealth. Educate yourself, analyse profits versus risks and get started slowly but steadily.

7. Get insured before you need it

Medical bills in Malaysia can wipe out your savings overnight, especially with Malaysia’s soaring medical inflation. Many young adults skip insurance, thinking they’re healthy but insurance is cheapest when you’re young and healthy.

At minimum, get a good medical card or health insurance. If you have dependents (aging parents, siblings), consider life insurance or critical illness cover too.

8. Avoid lifestyle inflation

The moment you get a small pay raise, it’s tempting to upgrade everything: fancier car, nicer condo, more weekend trips but before you make those impulsive permanent decisions, beware of “lifestyle inflation.” Instead of letting your expenses rise with your income, try to lock in a consistent savings rate. For example, if you get a RM500 raise, commit to saving half of it. There’s no harm in treating yourself once in a while but finding the right balance between those treats and money spent versus saved, is key.

9. Understand your loans and plan your finances accordingly

Whether it’s PTPTN loans, car loans, or a mortgage — know exactly how much you owe, what your interest rates are, and when your payments are due. If you have a PTPTN loan, look into discounts against consistent repayment, ongoing promotions, loan restructuring plans or early settlement. For car loans, avoid stretching payments over too many years just to lower the monthly instalment — you’ll end up paying much more in interest.

10. Invest in yourself

Finally, your 20s are the best time to upgrade your earning power. Learn new skills, pick up certifications, attend workshops, or take online courses. Consider learning about personal finance, coding, design, or even public speaking — anything that can increase your future income. Platforms like Coursera, FutureLearn, or even HRDCorp-claimable courses make upskilling more accessible than ever.

Remember, money mistakes happen — that’s an inevitable part of learning and growing up. What matters is building good habits, not being perfect. These small changes and small investments you make in your 20s will make a big difference in your life as you grow older. Money management and good financial planning make our lives easier and better, so why wait to start. Learn more about money management at www.imoney.my