Rising Youth Bankruptcy in Malaysia – A Wake-Up Call for Financial Discipline
In early 2025, Malaysia reported something that is deeply troubling: over 877 young people between 18 and 40 declared bankruptcy in just one year. That translates into more than two people every single day. These are not merely isolated cases but are part of an alarming trend. Over the past few years, thousands of Malaysian youths have found themselves drowning in debt, burdened by loans that they cannot repay, and haunted by dreams that they can no longer afford.
Why is this happening in a country where opportunity exists, where education is accessible, and where many people own smartphones before they even have savings accounts?
The sad answer is that, while we are living in an age of rapid innovation and advancement in technology and AI, society's values and financial literacy have stagnated and even regressed.
A Culture of “I want it Now” and the Cost of Instant Gratification
In the age of 5G and e-commerce, consumption has been elevated to an art form. With just a few taps on the mobile device screen, a new gadget, a new outfit, a coffee we did not need — can be quickly delivered to our doorstep. These days we are constantly bombarded with adverts touting "Buy Now, Pay Later (BNPL)". No doubt it is a very catchy slogan, but it is one that is fraught with danger. BNPL entices naive consumers to spend beyond their means, accumulating costly consumer debt with each purchase. Unfortunately debts do not vanish with the same speed that they appear. Instead, they tend to linger, grow, and snowball. And before you know it, you have fallen deep into the debt trap.
This is the culture of instant gratification. It is ubiquitous. And if left unchecked, it will have long term consequences on the financial well-being of those affected, and jeopardize the country's future economic development.
“He who wants everything now, ends up with nothing later.”
If you have ever bought something on impulse, only to regret it later, you are not alone. I have been there too. That fleeting rush soon fades. But the bill remains. What we truly crave is not the item - it is the feeling of reward, status, comfort. Unfortunately, true reward, status, and comfort cannot be bought. They must be earned.
Choosing the Path of Patience: Delayed Gratification
The panacea to the disease of instant gratification is to choose the path of patience, cultivate the ability to resist immediate temptations for larger future rewards. This is delayed gratification. It is not about denying yourself joy. It is about choosing greater joy later, over lesser joy now. Instead of succumbing to the temptation of "Buy Now, Pay Later", you can choose the healthier option of "Save Now, Buy Later."
When you delay gratification, you save instead of spending. You invest in your future, not just your present. You learn that a quiet and growing bank account offers more peace than any loud new gadget.
Build Your Financial House Brick by Brick
Here’s a simple philosophy that took me a long time to learn: Pay yourself first.
Those three words simply mean that we should set aside a portion of our income for personal savings first before paying for discretionary items such as that cup of Latte, that Wagyu steak, or that spanking new Huawei Tri-fold phone. While you may lose some bragging rights or a few Instagram moments, you will be building a more solid financial foundation for your future.
This habit is powerful because it creates a mindset shift. You're no longer just a consumer—you become the master of your financial destiny.
Here’s how you can begin:
- Start small: Set aside at least 10% of your income before anything else.
- Be frugal, not stingy: Prioritize needs over wants. Find joy in simplicity.
- Track your spending: Awareness is the first step toward control.
- Avoid unnecessary debt: Borrowing isn’t bad, but borrowing for things that lose value? That’s a trap.
- Reflect often: Ask, “Do I want this? Or do I want the feeling this gives me?”
Self-Discipline: The Quiet Power That Builds Wealth
Financial discipline is all about choosing to prioritize your financial well-being and being at peace with your choices. When you stop chasing every shiny new object, you realize how little you truly need. And in that moment of clarity, you gain power and control over your life.
Think of your finances like a garden. If you water it daily, protect it from weeds, and give it sunlight (patience and time), it will bloom. But if you neglect it, or expect fruits too soon, it withers.
Discipline is the act of showing up every day, even when no one is watching.
Financial Independence: A Slow Climb Worth Taking
Financial freedom is not a lottery ticket. It is not about getting rich fast. It is about reaching a place where money no longer controls your decisions. Where you can say “no” to things that don’t serve you. Where you can walk away from a toxic job, invest in your passions, support your loved ones, or retire early and not because you’re lucky, but because you planned the whole journey.
It’s a mountain. And yes, it looks steep.
But like any mountain, it’s climbed step by step, not in leaps.
A Gentle Reminder to Begin
You do not need to have it all figured out. You don’t need to be perfect with money. You just need to begin.
“The best time to plant a tree was 20 years ago. The second best time is now.”
Buy one less unnecessary item this week. Save RM10. Reflect on a purchase. Say no to something small, so you can say yes to something greater tomorrow.
And as the wise adage says, "A journey of a thousand miles begins with a single step."
Let us kick the unhealthy spending habit and head towards financial freedom by taking the first step today. Your future self will thank you for it.