Young adults living on a tight budget is tough, especially if you’re earning a monthly salary of RM2,000 or less. You’ll need to pay your bills, buy groceries, pump petrol… And not only that, you’re also always told to prioritise saving money!  

To manage these expenses, financial experts often speak of Rule 50:30:20, where you allocate your income according to needs (50% of your income), wants (30%), and savings (20%). Can you actually follow this rule if you have limited earnings? 

We spoke to some young Malaysians who earn RM2,000 or less to find out.

 

Kisah Benar: Young Malaysians Surviving On RM2,000 Income Or Less

We sat down with 10 young adults who earn between RM1,500 (Malaysia’s current minimum wage) and RM2,000, and asked them about their monthly income management. 

Here, we share the numbers from three young Malaysians in particular – Syarifah, Anis, and Encik R – based on their expenses in three categories: 

• Needs: Necessities, like rent, bills, loans, groceries, and petrol
• Wants: Non-essential items, such as vacations 
• Savings: Emergency savings, EPF, and so on

Our New Friends Weigh In On Saving Money According To Rule 50:30:20

All of the young adults whom we spoke to unanimously agreed that it is difficult to follow Rule 50:30:20, and save 20% of their income. That said, they all recognise the importance of saving money, and have adapted the rule to accommodate their existing situations.  

Encik R, as one of the few individuals we spoke to who is renting his own room, spends almost 90% of his income on his needs, and does his best to save the remaining 10%. His biggest expense is his room rental (RM700), followed by food (RM600) and car loan (RM300). He said:  

Anis, too, agreed that she would not be able to sustain her existing lifestyle and save money if she had to pay rent as well. Anis – who is paying RM500 for her car loan – said: 

Syarifah also stressed that RM2,000 is only barely sufficient for single adults, and will not be enough for those with dependents:  

 

Taking Lessons From Young Malaysians To Save Monthly

In their effort to save more efficiently in the long term, here are some steps that Syarifah, Anis, Encik R, and other interviewees have taken (and you should too!): 

1) ALWAYS compare prices

Check the prices of goods between stores and online/offline platforms before purchasing. Use tools like the KitaJaga app and the PriceCatcher website to help you!

2) Go for generic brands

Some supermarkets have their private brands for things like groceries and toiletries, which are usually cheaper. For example, AEON has TopValu, Giant Malaysia has Meadows, and Lotus’s has its own Lotus’s brand.

3) Review your mobile plan

Telcos frequently update their mobile plans, so check occasionally for cheaper plans that better suit your needs.

4) Buy insurance through i-Lindung

Getting life and critical illness insurance through i-Lindung lets you get coverage without drawing from your immediate funds! Instead, you pay through your EPF Akaun Sejahtera balance – which is already part of your salary deduction.

5) Embrace the thrifting culture

Buy used goods instead of new items to stretch your ringgit – not just clothes, but also furniture, kitchen utensils, and so on. A popular online platform for this would be Carousell, but you can also visit physical stores like Jalan-Jalan Japan and JBR Bundle.

6) Plan your meals

Meal planning helps you buy only ingredients that you need and avoid wastage. You also won’t be tempted to buy fast food for meals.

7) Take advantage of aids & discounts

Look for affordable deals on apps like Fave and tap into any membership programmes for extra benefits! Some state governments also run special programmes that offer discounts (like Selangor’s Bingkas initiative) so make sure to check for details. 

 

“It’s not easy, but we’ll make it work!” 

While it is challenging to save 20% of your income on a salary of RM2,000 or less, insights from Syarifah, Anis, and Encik R have shown us the importance of making a conscious effort to save money. They are willing to significantly cut down on their wants just to save even 10% – and that is the spirit that we should all emulate!

You can also check out some other strategies that you may use to save better here.