how much.. (I)

How much are you earning per month? How much are you spending per month? How much is "enough"? and how do you define "enough"?

There was a recent article on the purchasing power of Malaysians which kinda validates my presumption.. If you are a professional working in KL or Penang area, you would agree with the article..

So exactly how much does one need to live in KL? Before we start looking into the cost of living in KL, here are a few basic assumptions..
1. Housing - You are not from KL thus you would need to rent a flat/apartment/house.
2. Transport - You work in town area (either downtown KL, Putrajaya, Cyberjaya, Damansara, etc) thus you would need a car as public transport is non-existent.
3. Food - You do not cook at home thus you would need to eat out.

Let's list out the essentials..
Housing
Rental - MYR$ 700 per month [for one partial furnished flat/house in non-popular areas]
Utilities (electricity and water bills) - MYR$ 80 per month
Sub-total for Housing - MYR$ 780 per month

Transportation
Car (mortgage) - MYR$ 460 per month [for a new basic (automatic) Proton Saga paid over 5 years, without taking into consideration the initial payment]
Car (petrol) - MYR$ 200 [urban driving @ 7km/liter ]
Toll charges - MYR$ 4 per day [20 working days a month]
Car (insurance) - MYR$ 1000 per year [basic 3rd person rider coverage]
Car (parking) - MYR$ 5 per day @ the office [20 working days a month]
Sub-total for Transportation - MYR$ 923 per month

Food
Breakfast - MYR$2
Lunch - MYR$ 6 (with drinks)
Dinner - MYR$ 4
Sub-total for Food - MYR$ 360 per month

Telecommunication
Mobile Phone - MYR$ 50
Internet - MYR$ 40
Sub-total for Telecommunication -> MYR$ 90 per month

Misc
Household amenities (detergents, toilet papers, etc) -> MYR$ 20
Personal amenities (shampoo, shower foam, etc) ->MYR$ 30
R&R (movies, groceries, wardrobe, dining at restaurants, etc) -> MYR$ 150
Sub-total for Misc -> MYR$ 200 per month

Grand total for Housing, Transportation, Food, Telecommunication and Misc will come up to MYR$ 2,353 per month

And I've yet to include:

• Income Tax
• Road Tax
• EPF contribution (11% of one's salary)
• Personal grooming (newl clothes, shoes, haircuts, etc)
• Insurance (Life, medical, etc)
• Medical bills (including dental)
• Car maintenance and repairs
• Repair/Replacement of household appliances
• Gifts and/or (one-time or monthly) allowance to parents
• Social functions (weddings, birthdays, etc)
• Loss and replacement of belongings due to theft, accidents or carelessness
• Holiday travels
• Savings and investment for old age..

Of course, you could save more by opting to share a flat, use less electricity and/or water, buy a second-hand car, drive more efficiently, avoid toll roads, get cheaper motor insurance, eat cheap food, eat out less often, use your mobile phone sparingly, not use Internet totally at home, buy house-brands, not go to movies, avoid socializing and other lifestyle choices..

Aussie Dollars.. AUD$1 can get you more than MYR$1 could..

Nonetheless, I still think MYR$3,500 is the bare minimum take home pay (after deducting EPF and income tax), not gross salary, that you would need to live in KL frugally, especially if you are not from KL.. with a fresh grad getting around MYR$ 2K (gross), how can we expect them to survive in the big city??? and is it such a mystery why many city dwellers are in debt, especially with high credit card bills???

Next, I shall examine each of the elements (housing, transportation, food, telecommunication and misc) in details and give my thoughts/takes on them....


Disclaimer: I am not an economist nor am I (formally) trained in finance.. The figures above are my own estimation which are based on data gleaned from my family/friends and the Internet. I am just stating my observation, experience and thoughts, as I had lived in 3 different Asian countries/cities in the past 20 years...