THE MALAYSIAN LEVELS OF WEALTH by Mr-Stingy

THE MALAYSIAN LEVELS OF WEALTH by Mr-Stingy

Need to somehow schedule a coffee session soon with this amazing writer who’s also Luno’s Regional General Manager for Asia Pacific (APAC)

You can move directly into his very insightful article (below) by a good friend whom I used to have coffee occasionally some years back. Perhaps these days he’s too busy, I am too busy and thus we have not met for some years. However, I have to say that his writing ability is top-notch and he has that uncanny ability to share insights in a simple way. Recently, he wrote this insightful piece which I think every Malaysian professional wanting to know where he is where wealth is concerned should read.

Article in mr-stingy.com His definition and he explains it in detail in the article!

Based on Household Wealth (Net Worth):

1. Struggle (<RM25k)
2. Working Class (RM25k – RM250k)
3. Middle Class (RM250k – RM2.5M)
4. Affluent (RM2.5M – RM10M)
5. Rich (RM10M – RM50M)
6. Super Rich (>RM50M)

*Household Wealth = Assets (home, investments, savings accounts) minus Liabilities (credit cards, loans)
**RM1 = US$0.24 Read the article in full here: Article in mr-stingy.com

My tip if we really want to be at that ‘middle class’ without the need to be earning top ringgit?

First is still to earn enough so that we could save enough for a downpayment to a property and not paying rental for 30 years. Always remember that when people say most Singaporeans are millionaires, what they meant is that they actually have a property which they could sell and become a millionaire. If we look at just salary and savings and the CPF dividends, becoming a millionaire is harder than having a property which appreciates from the day we bought till the day we retire simply because of inflation.

What’s next after saving enough then?

Just save enough for a downpayment to one RM500,000 property. 30 years later when we have finished paying for that property, it would have risen to RM1 million. By then without any debts and our wealth at RM1 million or more since we have that property, we can then say we are at the Middle Class level. It’s nowhere near the Affluent or Rich or even Super Rich but boleh lah. Sell that RM1 million property and it can allow us to have RM4,167 per month for the next 20 years after retirement. This is on top of our savings, our other investments and of course, our EPF too. Who knows, adding up all meant we could have reached the ‘Affluent’ level? 🙂

Working Class is no longer enough

We could retire at 60 and we could easily live to 80. These 20 years meant money is needed for 240 months. Even if we could save for 30 years, there’s no way we can live at the same level of expenses when we retire if our income stops and we do not have any asset which we could just sell and use it to sustain our expenses so that we could live comfortably. This is why when we see some advanced countries, their population are still working even past 60. My advice is to invest so that by 60 we could afford to enjoy a little By then, we would still walk, travel and we should.

Reminder to read his article in full and perhaps even his other articles here. All are insightful and I would even say purposeful too. All the best and cheers.

Happy contributing and earning. 

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