Gone were the days where PMETs (Professionals, Managers, Executives, Technicians) can work hard, climb up the corporate ladder, and hold on to an iron rice bowl and retire peacefully with a gratuity or pension. These days, you might bump into a well-dressed driver in a nice car with perfectly-spoken English, earning extra cash as an Uber driver. Or you might have observed them hanging around educational institutes, trying very hard to learn a course or two, hoping to specialise in a more lucrative field, which they hope to switch to.
Reality has set in, local, middle-aged and specialised PMETs are facing retrenchment possibilities as their younger or foreign counterparts are taking over their positions. These PMETs have been so comfortable in their positions for years, fetching reasonably good income, driving nice cars, and living in posh residences. And they can lose such indulgence overnight when faced with recession or competition. There's no loyalty in corporate organisations like before.
One may be young now, but in a decade or two, one can face the same risk of being redundant and replaced. Thus, it is crucial that one takes note of the following:
Save early and be conscious of expenditures
It is a common sight to see young PMETs carrying branded bags and driving expensive cars these days. It is obvious on what they have been prioritising, though they may not be earning high amounts. Eventually they will be bogged down by housing loans, car loans, and dependents to support, which then will lead to downward spiral on their savings plan, if they intend to have one later.
If they have started to save earlier while they are young and be more conscious of their expenditures, they would not have to fear retrenchment as they would have sufficient amount to tide over when the time comes.
Be financially savvy and invest on the right items
One needs to be financially savvy, to save for a rainy day and to invest on the right items such as a professional education to upgrade one's skills and credentials, or items that can appreciate such as properties, company stocks, ETFs, businesses, etc. Of course every investment comes with a risk, but with in-depth research and the know-how, one can minimise the risks involved. Overtime, with compounding interest and improving economy, one can reap the benefits of growing wealth. You will be more ready to retire earlier and better with passive income, than your peers who do not invest and only spend on their active income.
Avoid lifestyle inflation as you rise up the ranks
Young professionals tend to have a false sense of security as they can easily land themselves in jobs and they think they could live with high salaries forever. As such, they spend on luxurious items such as club memberships, expensive cars, houses, jewelry, etc. And they complain about being bogged down by these financial obligations when they lose their jobs. People who appreciate delayed gratification tend to enjoy their retirement better while they live simply when they were younger.
If you are conscious of these tips and pointers, you are on your way to being financially free earlier. Give us your comments on what you think.
R. Arlette is a consultant and trainer for corporate organisations and educational institutions who specialises in the following: 21st Century Skills, Personal Mastery & Peak Performance, Communication Skills, Innovative Thinking, Entrepreneurship, Design Thinking, Personal Branding, Problem Solving & Decision Making, Service Excellence, Effective Networking, Public Speaking & Presentations, Team-Building & Cohesion, TetraMap®, Profiling, Career Guidance, Interview Skills, Sales Techniques, Negotiation Skills, Brain-Based Learning.
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