Can You Live With RM3,000 nett A Month?

This is a question have been asked by almost every one who earn on the average on RM3,000 nett take home income. That is the average wage earner in Malaysia. Supposingly you are married with 2 kids or even 4 schooling kids which is again the average family size in Malaysia – can you make a living with a combine nett income of RM3,000 a month?

With the petrol cost increase, electricity cost increase and the ever raising cost of living this is definitely a question to ponder. With the household expenses usually exceeding the income people had to work extra hours in a day to offset the rising cost of living.

A survey conducted by Fomca concluded that a household monthly income of RM3,000 was inadequate to sustain a family comprising two adults and four children in the city.

Expenditures – cost per month
Housing mortgage – RM600.00
Car Loan Mortgage – RM500.00
Food Expenditure – RM500.00
Transportation/ petrol/ toll - RM600.00
Education, tuition and reading materials – RM500
Clothes and household expenses – RM300
Total Expenditures – RM3,000.00

Sources from the Star.

It looks like enough! But actually not.

They forget to include a compulsory 10% saving to the longterm saving that we advocate to pay ourself first every time we receive our paycheck. This 10% financial freedom account must be done every month and everytime  we receive our income despite whether the ecomony is bad or good.

Here are some unpopular tips to overcome the problem.

1. Always pay yourself forst. Save 10% of the nett income to your long term financial freedom account.

2. From the balance 90% then work and rework out the monthly expenditure until it is equal or below the balance after paying to ourself. Cut down on unnecessary expenses or purchases and delete nonessentials from the list.

3. Avoid new debt. Be pratical with the credit card use.

4. Work part time either from home or outside the home. It may be difficult but it is better to have extra money than be comfortable at home. Earn that estra income. Again save 10% first then the balance either to be used in the household expenses or to pay off your debts.

5. Learn new skills. Computer, acccounting, salesmanship or interne or anything. Try to match these skills with your own interest or hobbies. One day you might be able to generate extra income to you.

Hope this help. I too have to make a new list for my monthly expenses.

To Your Millionaire Success
Michael Liew

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