Gen Z (New Graduates Just Starting Work) and Fixed Expenses That Already Take Up 50%: The Tough Question of Where to Save Money

At the start of the year, we are often bombarded with advice that borders on pressure to "save," "cut extravagance," or "invest quickly to get rich." For First Jobbers or Gen Z just starting to earn, such advice may feel distant from reality because the real question on their minds isn’t how to save.

It is, “Where can I get money to save?” when the cost of living rises faster than income, creating a condition called the Financial Anxiety Generation—young adults burdened with financial worries similar to older generations despite just starting out.

If we face fixed costs such as housing, transportation, or loan payments that already consume 40-50% of our salary, this is a reality to accept. KTC offers a new mindset framework to help you survive and grow long-term.

Three truths to see clearly so you don’t “fail” from the start.

1. Money is "time," not just numbers in an account. At age 22–25, you may not have a large sum, but your advantage is "a longer investment horizon." Starting to save or invest small amounts regularly today uses the power of time effectively. Security isn’t about who has more, but who "starts earlier."

2. Beware of "irreversible decisions." Chronic poverty often comes from rushing into commitments that are hard to back out of. If you just started working but decide to take on fixed expenses (like buying a car or condo) that exceed half your income, you are destroying your "flexibility." When income is unstable, flexibility is as valuable a resource as cash.

3. Redefine security as "not having to rush decisions." A 6-9 month emergency fund may seem unattainable for new graduates. Start smaller: aim to have 30-60 days of money or time to live without making pressured financial decisions. This shifts your mindset from "must choose now" (due to lack of funds) to "let me think," leading to more accurate decisions.

A "realistic" solution for Gen Z today.

If the world tells you to get rich fast but your income says to wait, practical and no-nonsense adaptation methods include...

• Balance fixed costs: try to keep fixed expenses manageable and flexible. Avoid rushing into large debts that require long-term payments in your first 1-2 years of work to maintain "room to adjust." Create "time" for yourself: if
• your savings are low, focus on cutting unnecessary spending to buy "time." Having enough reserves for 1-2 months is enough to avoid taking low-paying side jobs or staying in environments that limit future opportunities.
• Understand the changed rules: accept that life costs are high and uncertainty normal today. Managing money is no longer just saving by old formulas but understanding the relationship between money, time, and decisions.

In summary, being Gen Z today doesn’t mean poor money management; the world’s rules are tougher. Avoiding irreversible burdens and valuing "time" are key weapons to build true long-term wealth and stability.

Source: KTC

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