Having troubles managing your budgets? Thanks to the Ministry of Finance and Employee Provident Fund (EPF), now we have a financial guide. In collaboration with the University of Malaya (UM), the finance ministry has launched the “BelanjawanKu Guidebook 2019” expenditure guide.
What is Belanjawanku?
Belanjawanku is an expenditure guide, providing estimated minimum monthly expenses on various types of goods and services for different households in Malaysia. It can help Malaysians plan their personal and family budgeting to achieve a reasonable standard of living.
The guidebook is developed based on actual spending patterns on common goods and services by urban households in the Klang Valley.
Estimated budget according to the report:
1. Single (public transport user)
Unmarried Malaysians who use public transport, rent a room in the Klang Valley, and do not save, need RM1,620 per month. This estimate includes personal care, social participation, and discretionary expenses.
2. Single (car owner)
Using a car instead of public transport raises the required expenditure by 38% to RM2,240 per month. If the individual wants to save RM250 monthly, it raises the total to RM2,490. That amount is sufficient to provide a single Malaysian living in the Klang Valley the ability to live decently, take part in society, and at the same time, have some savings for rainy days.
3. Married couple (without children)
Not surprisingly, married couples need more to maintain an acceptable standard of living, with the minimum expenditure required increasing to RM4,420, under the assumption that couples are more likely to either rent or own a house rather than a room.
4. Married couple (with one child)
If the married couple has a child, it raises the required expenditure level even more. They need RM 5,730 which is an increase of RM1,310 from married couple without children.
5. Married couple (with two children)
Having two children raises the required expenditure to RM6,620, an increase of RM2,200, or almost 50% higher than for couples without children. The expenditure includes spending on daycare, diapers, milk and baby food, tuition fees, and pocket money, as part of childcare expenses.
6. Elderly couple
Belanjawanku also estimates the monthly expenditure for senior couples at RM3,090. Senior couples were found to spend less than other families for most of the items in the expenditure basket, with the exception of healthcare, and are also less likely to save.
Is it enough to survive in Klang Valley?
From the Belanjawanku guidebook 2019, we can conclude that the current wage of RM 1,100 isn’t enough for single Malaysian taking public transport who’ll need roughly RM 1,900 to live comfortably.
The median income of RM 2,650 in Klang Valley is deemed to be more than enough for a person who’s single. Apart from food, the majority of Malaysian spending actually comes from transportation when owning a car or motorbike.
To read the full report of Belanjawanku Guideline 2019, you can click here for further reading.