The Cost Of Living in KL for Fresh Graduates

The Cost Of Living in KL for Fresh Graduates

*Updated 24/12/2015:  PTPN Loans compulsory deduction for civil servants reported by Rakyat Post so many of the fresh graduates might be affected. Source: http://www.therakyatpost.com/news/2015/12/24/almost-3000-civil-servants-salaries-deducted-up-to-100-for-ptptn/

*Updated 24/12/2015: Touch ‘N Go Top Up Charges such as RM 0.50 will be taxed with 6% GST starting from 2016 and not the entire amount. Source: http://www.thestar.com.my/news/nation/2015/12/23/touch-n-go-denies-additional-gst-to-be-imposed-on-reloads/

The cost of living in Kuala Lumpur is getting costlier from one year to another. We had this conversation with our friends who are complaining about the high cost staying in the city. Thus, we also discussed how the young generation can save up in the city. This gave us the idea of writing this story on how much a fresh graduate can save every month in Kuala Lumpur. The below cost estimation is just a rough guide on how much a fresh grad is going to spend in Kuala Lumpur.


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.

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