Wow.. it had been a year since my last active post. Well many things happened throughout the whole year of 2010 including moving to a new place start out new adventure (it sounds so nice but actually it isn't) till i finally successfully taken the 1st step further into the financial / investment world by registering for the June 2011 CFA level 1 examination. Well now that i am back and very determined to keep this active, i would basically just like to share something called "middle class income group"
Before i go ahead to talk about this, i have a few questions that i would like you all to do some thinking. No need to give me the answers, you just keep it with you or you might want to share it with some your friends too during tea time.
- What is the amount written on your monthly paycheck?
- Are you currently servicing your car loan? if so, what is the ratio of your month repayment to your paycheck?
- Do you have any monthly installment for your new iphone, bb or dslr etc? if so, what is the total monthly installment and the ratio of it to your paycheck?
- Now here's the knockout blow. Given a new 20x70 double-story terrace house @ a not so prosperous housing area will cost you around MYR350k at least which translate into a monthly installment of MYR1773 given the current interest rate. Boys and girls, after paying off the fixed installment, your paycheck balance enough to pay for home installment and no need to feed on bread and water everyday?
So my dear friends, do you realize that our pays are seriously under paid? or should i rephrase it to be do you realize that our pay here are the only thing that doesn't undergoes inflation other than FD rate. But then what is the big deal? Nowadays people are applying mortgages under joint income so the MYR1773 shouldn't be a problem. Short term it isn't however guys, do you want your wife to work until she retire the same age as you as well in order to payoff the mortgage...
For some couples, they tend to live above their means when comes under by taking a loan under joint income. Eg, a couple with a combined income of 7k might want to buy a semi-d for 500k which is around 3k per month and this haven't factor into their monthly living expenses and end up having debt management issues.
That is why we can see a lot of fresh income earners or those average income earners rather to stay under the same roof with their parents or rent a room someplace near his/her workplace and paying 1k plus monthly for a Civic. Not to say they fail at planning is just that what they earn is not enough for them to have a house, a car and a family vacation once in a while.
Right now all of us might be asking, so how much we earn per month only qualify us as a middle income group? The answer is it depends on how you want to live your life but be under your means. But if you want a figure, i think should be the range of 5k if you want to own a 350k house and a 100k car and with 50% of your income to spend on your expenses.
Enough said, for me i still need to increase my salary 100% in order to make it into the "middle income class"... which is short term is near to impossible... this is reality and it's sucks.
Till then.....
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