The Finance Of Different Income Group In Malaysia
It's the time of the year again where newspapers talk about income and economic growth of the year.
Not wanting to miss the train, I like to share two graphs about the finance of the different income group in Malaysia.
This is how the typical Malaysia fare when it comes to income, expenditure, and spending.
If you can't find a job, go Uber full-time and you should be around 40-60% percentile (M40). Percentage wise, it's not too bad for something that everyone can do. But you probably won't feel the "privilege" of being above 50% because the gap is so near to B40.
The graph is based on official records and I personally think there are a lot of dishonest or unrecorded money, especially among urban dwellers. Just look at how people spend on branded bags in shopping malls. Also, the graph is not linear, it's exponential, breaking into top 20 is not easy.
How do we spend it?
As always, the poorer you are, the more % of your income goes to basic needs like food and housing. I wish we have food stamps here. I have volunteered in lower income group community to know that giving cash handouts to financial illiterate parents doesn't help to feed the kids.
Property prices are still near the historical high. I believe that it will normalize soon as all the high-density development completes. Nearly all my friends that could afford to buy a house has already bought one and are just waiting for their unit to complete latest by end 2017 before moving out their rented place.
It's normal for people to spend 25% or even 30% of their income for housing. But this can't be our budget, we aren't normal because we want to make a difference in our finance. Set the limit for housing at 15% of your income and you'll have 10% extra each month. If you have housemate that on the clothes dryer whole day, kick him out.
Do these figures reflect your financial situation?