Consider a fresh graduate is getting the salary of RM 2500 (which is above average) in Kuala Lumpur, how much he or she can save a month?
If the fresh grad is getting RM 2500, the take home money is RM 2212.75 minus Socso RM 12.25 and EPF Contribution RM 275. Thus, the nett take home figure is at RM 2212.75.
We have listed a few types of scenarios so you can judge on your own how much a fresh grad can save in a month.
Fresh Grad Staying with Parents with a Car
Utility Bills (Electric, Water, Unifi, Astro, Handphone): RM 200
Personal expenses (clothing, toiletries, sundries): RM 200
Personal Insurance: RM 150
Car loan: RM 400 (Proton Saga FLX Manual 7 years repayment)
Petrol: RM 300
Toll: RM 150
Parking: RM 150
Food: (RM 20 per day x 30 days) RM 600
Total Expenses: RM 2150
Salary: RM 2212.75
Save: RM 62.75
Fresh Grad Staying Renting a Room with a Car
Room Rental: RM 300 (Maybe somewhere far far away in KL)
Utility Bills (Electric, Water, Unifi, Astro, Handphone): RM 200
Personal expenses (clothing, toiletries, sundries): RM 200
Personal Insurance: RM 150
Car loan: RM 400 (Proton Saga FLX Manual 7 years repayment)
Petrol: RM 300
Toll: RM 150
Parking: RM 150
Food: (RM 20 per day x 30 days) RM 600
Total Expenses: RM 2450
Salary: RM 2212.75
Deficit: RM 237.25 a month
Fresh Grad Staying Renting a Room with No Car
Room Rental: RM 300 (Maybe somewhere far far away in KL)
Utility Bills (Electric, Water, Unifi, Astro, Handphone): RM 200
Personal expenses (clothing, toiletries, sundries): RM 200
Personal Insurance: RM 150
Public Transport: RM 300
Food: (RM 20 per day x 30 days) RM 600
Total Expenses: RM 1750
Salary: RM 2212.75
Save: RM 462.75 a month
Please take note that the calculation above doesn’t include PTPN or study loans, monthly contribution for parents and other unnecessary spending such as clubbing, drinking or cigarettes. For food RM 600 a month is not much considering if they go to Starbucks a few rounds a month, it definitely above the quota. We feel that insurance is important so we included it in our calculations.
Even by saving RM 462.75 a month, can a fresh grad afford a new home in Kuala Lumpur?
Using the house loan calculator, for a RM 200,000 house with 35 years of repayment at 4.45% per annum, you need to pay RM 940 per month! New houses in Klang Valley now are at least RM 300,000 (if you lucky to find one) or RM 400,000 and above. It is absolutely no way a fresh grad can afford even a small home in KL.
The above is just a rough estimation and calculation of monthly expenses of a fresh grad in Kuala Lumpur. We hope our article is helpful and thanks for reading our blog. If you have opinion on this story, do comment and hope you share this story. Thanks again.