This reader wants to know if she can achieve her financial goal of saving the first RM50k within 5 years time. She provides her financial statement and I provide her the estimation and the method on how to calculate the saving rate in order to achieve her saving goal.
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As part of a growing community, it is your contribution to the discussion here that makes this blog a great place to hang around for financial advice. Please tell us what you think this reader can do to achieve her financial goal, in the comment section below.


Personal finance author and trainer

    13 replies to "Question: Can you accumulate RM50k in 5 years by saving RM300/month?"

    • elangovan krishnan

      i am looking low budget investment around RM300 for each month to settlement my study loan.
      can you suggest me or may be do you have any investment plan for short term investment to settle my loan repayment
      kindly reply my message

    • Pearl

      I think kids should all be thought to expand their mind on financial knowledge. If I said she is thinking too small on getting a return of 50k for 5 yrs. I just done a property deal and had a capital gain of 50k upon signing of agreement. Saving sometimes may not be the answer but learning the skill of using OPM is the key. Cheers. Having investing.

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    • Elsa

      Hi KC Lau, just wanted to share some good news with you. M2u planner under Maybank is finally here! Yes! Finally a malaysian website tool that can help us budget and create goals online.

    • Shiful CWA

      Even at a rate of return 20% a year she wouldn’t be able to achieve 50K, but if she’s willing to extend to another two years (7 years in total) she would be able to achieve RM54,871 . I’m using compounding interest to calculate this.
      I don’t think rental would gave her 1.2K a month, i’m not sure i’m not from KL :)
      Is it possible to earn 1.2K rental in KL with a decent 180K apartment ?

    • Faizal

      It’s very interesting topic here. I have 1 idea that requires a very strong dicipline and depending on the economic situation. Power of compounding interest applies!
      1st year saving = 300 x 12 months = 3600 (put in ASB or ASW2020) assuming yearly dividends throughout 5 years is 7%
      2nd year savings = 500 x 12 = 6000 (the person must find his way to increase his income by getting a good increment + bonus or find a better job with better salary to accomodate his monthly 500 savings)
      3rd year savings = 700 x 12 = 8400 (apply 2nd year rules)
      4th year savings = 900 x 12 = 10800 ( continue doing same thing)
      5th year savings = 1100 x 12 = 12000

      Can we get 50k in the 61 months? Let’s us do the homework and calculate :)

    • Meena

      Doing the math you will not be able to get RM50k in 5 yrs just by saving RM300/month or RM600/month
      The best solution for you is to find an investment best suited based on your risk tolerance and expected growth, then invest your savings.
      However, its no easy way. you still need to do your homework and research what is the investment best suited for you whether it be property, unit trust, commodity etc
      But yes you can achieve RM50k in 5 yrs if you have invested wisely

    • Peter Lim

      Given my knowledge, skills, experience and interest, I would refinance my parents house, withdrawing RM 50k, stretching it as long as possible, say 30 years or so.

      At current housing loan rate, that would equate to less than RM 300 per mont, which my savings of RM 300 will go towards the monthly payment of the loan.

      Targeting 15% return per year thru “Investing” (not “Speculating”), I target to double it within 5 years. After paying off loan of 50k that time, I’ll end up with RM 50k from RM 300 per month.

      1. That can only work if you or someone else have a house that can be refinanced to cash out RM 50k of equity.
      2. You know “Investing” from proven principles and methods. Nowadays, many people are actually “Speculating”, and Not “Investing”.
      3. Just like Sayeed’s example above, you understand that the return earned are magnified with the use of leverage, not from the underlying assets itself. Thus, you’re in control of bigger assets than your own money warranted. If you don’t know what you’re doing, then the effects of downside is magnified.

      Looking back, I guess the best is to invest in myself 1st if i don’t have the necessary knowledge (be it in stocks pr properties) before doing the above. After all, the fastest thing about money, is losing it.

      All the best.

      • KCLau

        Great sharing Peter. Thanks for commenting here and giving your solution to others.

    • sayeed

      Hi KC;
      I am back from my hiding of a full 1 year as planned. Ok, here is a good question that I may suggest something related to saving $50K or even making $50 in a year or less.
      There are many ways. My trait would be “property”. Just think if she is willing to take up a property within her budget, say $180K for example, her monthly mortgage would be in the range of $900 – $1K inclusive maintanance. Looking at a good location, she should find a place with that value going with a rental above $1K…example $1.2K.
      Simple calculation after 5 years would be loan amount reduces from $162K (90% of original purchase) to $140K (all paid by tenant) and she has $200 pocket money monthly for other reasons. Estimate the valuation increases 5% a year, in 5 years the valuation is now $220K..guess what she take back.. $80K!!
      Does the maths make sense ?

      • KCLau

        Hi Sayeed,
        Welcome back! Happy holiday to you :)
        I definitely agree with you about saving and investing in properties. Real estate is also my preferred place to park my money.

    • Jackson MMA

      Targeting a RM50K within a 5-year period with a monthly saving of RM300 could be tough! It’s advisable for her to repay her study loan first, and at the same time, she shall maintain her RM300/month saving and try to increase her gross income in the near future.

      Once the study loan has been fully repaid, then she could ably to save – RM1K/month! And if she’s of Bumiputera descent, she could achieve her dream by making an ASB investment loan via Maybank. See this table for reference: (Other info:

      The current rate for a RM50K loan is RM943/months x 60 months = RM56,580.00; with RM6,580.00 as the interest payable to Maybank…

      For your information, I’m using this “updated” table as a basis for making passive investment decision making. It’s a good option for money to be a slave to us; in return, we could “goyang kaki”… (“,)

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