Financial Regrets: Money Decisions Many Malaysians Wish They Made Earlier

Many people assume they’ll start saving, investing and planning for retirement once their income increases.

After all, when you’re in your twenties or early thirties, there are plenty of competing priorities. Rent, transportation, travel, a wedding, a home or supporting family can all take precedence over long-term financial planning.

The challenge is that one of the most powerful factors in wealth building and retirement preparedness is time.

Consider this simple example:

Two individuals invest RM300 a month and earn an average annual return of 6% compounded monthly.

• Person A starts at age 25
• Person B starts at age 35

By age 60:

• Person A could accumulate approximately RM427,000
• Person B could accumulate approximately RM208,000

Despite investing the same amount each month, the person who started 10 years earlier could potentially end up with more than double the amount.

⏳ The cost of waiting at a glance

*Illustrative example based on RM300 contributed at the end of each month, an assumed annual return of 6% compounded monthly, and no fees, taxes or withdrawals. Actual investment returns are not guaranteed and may vary.

This illustrates why starting later can sometimes be more consequential than starting with a smaller amount, and why some people wish they had started sooner.

📗 Suggested Read:

To learn more about how compound interest works and why starting early matters, read our article, “How Compound Interest and the Reinvestment of Profits Can Grow Your Money”

Debt itself isn't inherently bad.

When used responsibly, financing can help you achieve meaningful goals, whether it's furthering your education, financing a home improvement project or managing a planned financial need.

The regret often comes when borrowing is driven by short-term wants rather than long-term priorities such as:

• An expensive lifestyle upgrade
• A renovation that stretches beyond budget
• Purchases that feel worthwhile in the moment but lose their value long before the repayments end

Looking back, many people don't regret borrowing itself. They regret not being more intentional about what they borrowed for. Before committing to any new financing, it's worth asking:

Making that distinction can help preserve more flexibility for future goals, whether that's building savings, investing or preparing for retirement.

📗 Suggested Read:

Not all borrowing is bad. Learn more about situations where financing may make sense in our article, "When Should You Consider a Personal Loan?"

When you're young and healthy, protection planning rarely feels urgent.

Serious illnesses, accidents, or unexpected life events can seem distant, making it easy to postpone thinking about insurance or takaful coverage. Unfortunately, life's uncertainties don't always wait until we're financially prepared.

A major health event can affect more than just your physical well-being. It can also impact your income, savings and ability to stay on track with long-term financial goals.

Many people spend years building their savings, only to discover that savings alone may not always be enough to absorb a significant financial setback.

That's why protection forms an important part of a well-rounded financial plan. It helps provide a financial safety net when unexpected events occur, allowing you to focus on recovery rather than worrying about how to cover expenses.

📗 Suggested Read:

Unexpected health events can affect more than just your well-being. Explore how they may impact your finances in "How Critical Illness Affects Your Income and Why Savings Alone Are Not Enough."

✅ A Small Step You May Already Have Access To

Some banking products may also provide protection-related benefits as part of the offering.

For example, eligible CIMB Salary Account holders under the CIMB@Work programme may receive complimentary Takaful coverage for 36 critical illnesses, death or Total and Permanent Disability. The coverage amount ranges from RM5,000 to RM200,000, depending on the Monthly Average Balance in the account two (2) months prior.^{^}

This may provide an additional layer of financial protection while account holders build their savings.

^{^}Terms and conditions apply.

References:

• iMoney | 10 Reasons Why Malaysians Are Still Broke
• Says | Malaysians Think They’re Doing Fine Financially. They Couldn’t Be More Wrong
• The Sun | Can Malaysians afford to retire?