This article first appeared in #edGY, The Edge Malaysia Weekly, on January 4 - 10, 2016.

Money, or the lack of it, has been weighing on almost everyone’s minds. What can we do? Sit and wait out the economic woes? Or should life go on?

Delay buying a car for as long as possible and don’t even think about buying a house just yet. There are better things you can do with your money this year, suggests Yap Ming Hui, financial adviser and managing director of Whitman Independent Advisors Sdn Bhd.

Yap’s clients include major owners of companies listed on Bursa Malaysia and CEOs of multinational corporations. He trains a group of independent financial advisers under Whitman to help middle-class Malaysians achieve financial freedom and wealth.

These are words of advice for the young professional seeking to attain some level of financial security.

According to Yap, a car is heavy commitment for a fresh graduate. “By then, you are working not only for the bank but also for the car.”

Saving and investing do not have to be daunting if one adopts the five easy habits, as advised by Yap. It’s not about being frugal, but being smart and creative with your money.

1. Budgeting

List your annual income and expenses — these include the amounts you predict you will spend during festivals. Check if you have a surplus. If yes, great. If not, you should review your spending.

2. Force yourself to save

Live within your means, but first of all, learn to save. The best way is to force yourself to save because it’s easy to overspend.

How do you force yourself to save? By deducting it from your salary right away. Subscribe to a monthly salary deduction scheme or come up with your own.

I’m saying “force” because it’s the most effective way. Itemising your savings and knowing how much to spend can be a hassle. Save before you spend and you will know what you can afford.

It’s never about how much you earn, but your saving methodology. If you practise “spend first and save the balance”, it will not work. You may not be earning much now as a young professional and think you don’t have much money to save, but do it anyway. I’ve come across professionals who earn up to RM50,000 a month, and they still cannot save. Why wait until you earn more to start saving?

Ideally, start by putting aside 10% of your salary. Force yourself to do it and increase the sum over the years.

3. Learn how to invest

Find out about the alternative and affordable investment options available. Being a professional with a small budget, you would not be able to afford a property.

If you save RM200 to RM500 a month, you may not have enough money for property investments. The idea is to save via a unit trust and accumulate some money for a downpayment. From there, invest in something bigger like a property.

4. Learn to manage investment risks

When you invest, make sure you are aware of the risks involved. Learn the risks that can deplete or entirely burn your capital. 

The problem is that if you don’t know how to manage your investments, you will lose money. Some people even follow insider tips or make share investment decisions according to their moods.

When they lose money, they feel frustrated and disappointed. They start to think that share investment is not suitable for them. But instead, they have adopted the wrong concept and never learnt the strategies properly. 

So, they shy away from this form of investment for the rest of their lives. It’s traumatic and not good for one’s future financial management.

5. Invest in personal development

It’s not just about saving and investing. You need to enhance your money-making capabilities. Make sure you’re highly employable, and  increase your chances of getting a promotion. 

You need to invest in yourself by either attending seminars or furthering your education.

A lot of my clients do well at accumulating wealth because of their business or career. This just goes to show that investing in your own self-development is one of the best decisions you can ever make. Plus you’ll never lose money.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.