Living in Malaysia, it is not really a great future ahead for a fresh grad. Too much commitment and needs, but too few money to spend. This is the truth! Before I tell you how much a typical fresh grad have to spend in Malaysia, let’s see what’s happening in United States.
I read Ramit’s recent article. He stated that a girl working for Google spends $1,200/month on rent, $1,000/month recreation (going out, vacation, Christmas gifts), $500 month misc (gas, unexpected medical, travel). As you can see, this is a really rough estimate that adds up to $32,400/year.
Now take a look at the expenditure of a typical Malaysian fresh grad engineer: (take note that US$1= RM3.40)
Rental of a small room – RM200/month
Recreation, entertainment, vacation – RM500/month
Car installment (MyVi or Waja) – RM800/month
Tolls and petrol – RM500/month
Food and meal – RM500/month
Total = RM2500/month
Sadly, the starting pay is also around RM2500/month. You will probably ask why he has to spend more than half of his earning for transportation alone?! Only Malaysian will know 
That’s why I said it is so crucial to get your first car free!
Technorati Tags: rental, car installment, free car, fresh grad
{ 7 comments… read them below or add one }
I think one day I would love to write an article on spending.
I for one, find many “needs” to be luxury, which is a waste of money (it is just my personal opinion)
I find that car is not a need. There are many many alternatives to car, and car eats your money through maintainance, tax, insurance, petrol etc.
I never use handphone and I find it an addiction. It is not a need. It waste a lot of your money.
This goes for unnecessary shopping, unwise traveling and many petty spendings.
@ Relax
You are really “somebody”!
thanks
well, I think I learn all these from experience and through reading.
In Europe, it is common to cycle to work. It would be better to rent a place near working place, or take a train to work. There are many options. I think Malaysians are too dependent on cars. Even when someone want to buy a newspaper, he has to use the car.
This is a situation here in Malaysia. People are not given any choice other than own a car.
That’s sad.
No wonder so many people want PROTON to die.
Hi Kc:
May i know if i can write to ask you advice on my retirement plan or education plan for my 2 kids ?
thanks
Hi Vuga,
sure! just use this link to send me email:
http://kclau.com/contact-us/