WITH role models like Mark Zuckerberg, 26, founder of Facebook and youngest self-made businessman worth more than a billion dollars; and Sergey Brin and Larry Page, founders of Google, it is no wonder that the young think they can hit the jackpot too. The lure of being young and successful is strong – with icons that made their millions barely out of university.
In today’s world of success equals wealth, many see their paper qualification as a mere stepping stone to routes that will bring them an income beyond a simple salary.
To aspire to be a millionaire is no longer an abstract phrase but a very doable achievement. Obviously, 96% of 1,678 youth up to the age of 30 surveyed in the “So You Want to be a Millionaire” poll think so too.
The poll run by Sunday Star with YouthSays and Universiti Tunku Abdul Rahman found that most youth indicated that they aspire to become millionaires.
Rajen Devadason, a Securities Commission-licensed financial planner with MAAKL Mutual Bhd, attributes the rise to the existence of successful role models like Bill Gates in the United States, Richard Branson in Britain and Datuk Seri Tony Fernandes here in Malaysia.
Role models: The success of Google founders Page (left) and Brin has spurred the young to think that they too can hit the jackpot.“The appalling lack of political calibre we see everywhere, both in Malaysia and internationally, and the flaky behaviour of some entertainers and sports personalities, have caused today’s young people to increasingly choose to look toward business icons as role models. Financial success is, naturally enough, tied to high achievement in that arena,” he adds.
Joel Neoh, the executive-director of YouthSays, is surprised that almost everyone who took the poll aspires to be a milionaire.
“What is interesting is how many would eventually become one. Many won’t be able to achieve the goal,” he opines.
He is not too sure if the term “millionaire” means having RM1mil in cash or collective assets or a combination of both.
“If it’s collective assets, it’s very possible to achieve it today. About 10 to 15 years of savings can amass to that amount (car, house, etc). However, if it is RM1mil cash, this is quite a challenge to do so before the age of 35 if one is a salaried worker. But if one is running a business, then the chances are higher,” he says.
“Materialism is a big part of our society. Many of our parents tell us to get a good degree and good job. For many, being successful means being rich,” he says.
CEO of youth agency Summer Sands, Bernard Hor, shares that there is an increasing market for “how to get rich” courses, citing the many wealth academies and programmes available for those who want to learn how to make money.
“Many of those who go for such programmes are college students,” says Hor.
He adds that the multi-level-marketing (MLM) concept has the most active penetration in the campuses. He claims that research indicates that at least nine out of 10 students are exposed to what MLM has to offer. Hor says that six or seven students join MLM in one way or another.
“They have been sold the idea of making their millions through such marketing,” says Hor, adding that many of them aim to reach their goal before turning 30.
So what is the motivation for becoming a millionaire?
For ATCEN Founder and Group CEO Ernie Chen, being a millionaire is just sexy.
“Why wouldn’t you want to be one? Every kid I’ve met wants to have the cars and houses. They get the idea from TV shows and movies – pop culture, basically. The founders of Google were only in their 20s when they became not just millionaires, but billionaires,” says Chen who runs the Millionaire Business School.
But it is more than just being rich for glamour’s sake; saving for retirement is an important consideration too, especially with the increasing cost of living and inflation.
“There is an assumption that the price of everything will go up and there is a need to make a lot of money to survive, ” he says, adding that many youth are starting to invest in unit trust and other funds.
Alvin Chia, 21, a third-year business student, aspires to be a millionaire by 30. He cites lifestyle needs as a reason to make his millions.
Neoh: ‘Materialism is a big part of our society’.Rajen says that most Malaysians now in their 30s and 40s who hope to retire between the ages of 55 and 65 are likely to need between RM500,000 and RM5 mil, depending on their lifestyles.
“The snowballing effects of inflation will almost certainly kick in well before we retire, thus necessitating millionaire status simply to afford simple amenities in the 2040 to 2050 time period,” he says.
He believes the growing ambitions of today’s youth are also indicative of higher expectations they are willing to place on themselves.
“All this suggests that more young people are willing to pay the high price, in terms of discipline, diligence and courage, to break the bounds of conventional employment and build businesses or professional practices that will grant them their lofty desired economic outcomes,” he adds.
But while almost everyone wants to become a millionaire, not everyone will succeed in doing so.
“I’ve met young people who have huge aspirations. The reality is that some will make it, some will not. If everyone does well, the economy will get better, our country will do better,” says Chen.
Hor: ‘Increasing market for courses on how to get rich’Spoilt for choice
“We didn’t have very many choices growing up. Now you can be anything you want. There are a lot of ‘professional dreamers’, as I like to call them, out there but they don’t take any serious action towards realising their dreams,” says Chen.
He adds that becoming a millionaire, billionaire, or achieving financial success involves a lot of hard work. And therein lies the problem.
Only 36% of those surveyed believe that hard work is essential to reaching their goal. However, 47% believe that becoming a millionaire is based on opportunities – being at the right place at the right time.
“Young people don’t understand what hard work is,” says Chen.
Similarly, Rajen believes that most youth who talk about setting such high economic goals are unlikely to follow through with the appropriate actions.
But for those who do, they are the top performers in professions like law, medicine, engineering, accountancy and financial planning; players in the oil and gas sector; successful sales professionals of financial products, including life insurance and unit trusts; and persistent entrepreneurs who are willing to face the 1-in-10 chance of having a new business succeed.
Working for someone is viewed as unlikely to help you reach your goal and this is probably the reason why almost 60% of the respondents ticked owning their own businesses and entrepreneurship as the way to achieve their target.
“The heavy emphasis on business and entrepreneurship is correct. That is the way to wealth, at least in terms of earning big bucks,” opines Rajen.
He adds that the entrepreneurs are the ones who have already learnt to be respectful and considerate employees.
“Working initially as a conventional employee for at least three years is, in my opinion, a vital step in the maturation process of becoming a great employer or business owner,” he says.
Neoh says the entrepreneurial route has been proven to work. Their yearly National Youth Entrepreneur Conference has resulted in a few successful startups.
“The Government and businesses have realised this, and are coming up with special with grants and funds for young people to start a business,” he says.
Hor believes the entrepreneurial route requires a lot of patience. He lists his own experience as painful. Many entrepreneurs who have made it big talk about the time when they had only roti canai or Maggi Mee to eat for a long time. He himself had to contend with red beans and bread for almost 10 months.
The need to support one’s family can be a big obstacle in venturing out and taking risks.
“Many want to be bosses and own their own businesses, but after university, they have to send money home. Entrepreneurs don’t get a salary for nine to 18 months. They have no choice but to opt out of the dream and take up a regular job,” says Hor.
Chen, however, says that there are many ways of achieving financial success. “You can be a millionaire even if you are an employee. The key is having businesses on the side and investments,” he says.
Source: RASHVINJEET S.BEDI and SUMISHA NAIDU sunday@thestar.com.my
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