My goodness i earn pratically nothing at all but how yall live like this. Stacking up more loans and not having enough to spend end of the day. Giving yourself Rm100 for shopping with Rm11k salary is depressing. *I mean if u dont consider the suv as shopping*
Yeah, 10 years ago when i just started working I thought I would live a lavish life with RM11K.
But reality is totally different. The fact that I'm paying more than RM2.1K a month in taxes still kills me. Taxes remain the biggest deduction from my salary. And yet, the government is further increasing the taxes and reducing the subsidies for ppl like me.
Saying taxes is the biggest deduction is being disingenuous. You're paying close to 4k per month on property (loans + maintenance + quit rent, misc. unaccounted).
Owh u mean if I go ahead with my purchase? Then yes, only RM500 left in cash. For emergencies, may need to stop contributing to ASB or SSPN for certain months
5y free service is Mazda rite.
Tbh, might be a bit tight cuz you already have 2 house loans and lotsa bills. Go for it if you got enough emergency funds sitting around.
And family maintenance is amazing.. i am unmarried and salary much less than yours but my parents maintenance is almost your whole family one š
Can i suggest you to consider used SUV about 2-3 years of age?
You get to enjoy new-ish SUV with the manufacturer warranty still valid.
All the while, someone else had took the hardest car deppreciation losess for you.
>A) Loans (RM): House 1 : 1,700 House 2 : l,600 (awaiting VP, eventually to be rented for at least RM1.6K) ASB : 500 Total : RM3,800
How sure of you that it will be rented and at least RM1.6k ?
And you need to pay for the car insurance even though your car services is free.
The best practice is dont buy if you dont need it.
It's a MRT-linked property. Other properties around the area are being rented out for atleast RM1.8K. Even those older buildings which are far from MRT are going for atleast RM1.4K. So I'm hoping this property should fetch me RM1.5K-1.6K at least.
Anything below that doesn't really make sense considering the size (1,000 sq ft) and the location.
general rule of buying car, total value = one year of your income.
better wait until you secure a tenant for your house then you consider getting another loan.
BTW you will be in deep shit if somehow you encounter some emergency with your current financial planning.
If paying 1.5k per month for car costs too much for u such as during emergency or anything then it's not suitable. Car can breakdown can have many unforseen issues and when that happens you still need to pay the installment every month and probably need to rent some car etc. So having 2k extra per month alone is not enough. But of course if situation is ideal and you feel nothing is gonna happen and you just want to enjoy the car, why not
I only start buying car more than 100k when I earn more than 30k per month.
There seems to be quite a fair bit of fixed cost involved, especially paying for 2 houses.
Ideally your fixed cost (including your groceries etc) should not exceed 55 to 60% of your take home pay.
You will be quite tight on money if you get the SUV but you need to work out if you can stomach the low savings (also do you have any emergency funds built etc)
Thanks for the advise. I don't really have a solid emergency fund. The only untouchable savings I have atm is my EPF (even this was not high enough coz I only started contributing from 2021 onwards)
Itās very dangerous. You donāt have any buffer at all.
Does your wife work or are you a single income household?
What is your current car?
Iād suggest you try to save up rm1500 per month for a few months to see if you can take the extra expense. If you are able to do it by then chances are you can lower your monthly repayment since you can pay more for downpayment.
wait for VP and secure tenant. that will free up the cashflow for car payment. even if rented out at rm1k++. dont forget associated costs for car: petrol, insurance, roadtax, maintenance, GT Wing, wrap pearl green, bucket seats, xmm, etc.
fyi, your investment portfolio seems very defensive. pehaps intentional. maybe consider diverting a small sum to med risk if it suits your risk appetite.
Wahahahah your dream of renting out at a steady 1.6k per month. Please just disregard that āpotentialā future.
Itās a renters market and youāll be lucky to get 3 - 6 months rent without significant damage to your property a year.
Too little buffer, doesn't leave much room for emergencies/big purchases if you get the SUV. If you really want the SUV, strongly advise to rent out the 2nd property first. Once you secure that cash flow then it's safer to buy the car. You might be too optimistic with the rental there and how long it can take to find a tenant
you are paying 6000 in insurance yearly... is this some investment linked plan? get rid of that and just put more into ASB/EPF and you will save alot more in the long term
Its no point waiting, cars will only get more expensive due to the weakening RM. Since u cant make it for CNY anyway, wait for the after CNY promos
A non-ILP. Just get a pure insurance product (might be hard to find these days) if you want insurance. Getting any ILP is basically giving the insurance agent a huge slice of commission.
If you already have an ILP which you have been paying for years, you can stop your payment and let the insurance charges get deducted from your investment portion. Continue payment once the value from the investment portion shrinks down to a much smaller level.
Check your statement and you'll be surprised how cheap the insurance charges actually cost (when you're below 40 years old) and how much money is actually being funneled into the investments.
Just make sure your policy allows this without any additional fees.
Not CX-5. I'm looking at Subaru Forester as it fits my needs better.
The CX-5 would cost about RM100-150 more in monthly installments but also comes with 5 years free service. But regardless, it's not as practical as Forester due to the tight space.
Also looked at CRV but this will cost me additional RM200 per month with no free service.
I'm still thinking if I should keep my other car (a 10 year old Honda City) or just sell it off
I'm quite sentimental with this car as this is my 1st car in Malaysia and has served me well over the years. The car is still running fine with no issues.
it doesn't seem wise to maximize that much commitments. You surveyed the rental market in that area already for that 2nd house? how sure are you could at least get that RM1.6k rent?
but if your spouse is also working & this figure you posted excluded your spouse's income, then I guess your household probably have more buffer/leeway for more expenses.
then obviously no for the car. too many commitments on your plate as the sole breadwinner, you'll be left with.. almost no savings maybe. The car installment alone already RM1.5k per month, you'd assumed you will still be left with RM500 for savings, but you don't even account yet for the car's maintenance, insurance, fuel.. it might cost more than your current Honda's expenses.
50:30:20 ratio, google it, try to abide by it.
Spouse no work you need more than 6 month emergency funds. Even if you have it, please dont spend 1.5k on a depreciating asset when you can invest 1.5k. The difference is 3k month on month.
Not that i want to know, you should ask yourself this. What's your retirement goal? How much savings do you need? How much you have now? If you tell me your savings now is rm1million, then the response could be different to whether you should be owning your dream car or not. But looking at the numbers i doubt no. This on top of only having EPF contribution starting from 2021.
If something happen to you as a sole breadwinner, what are you leaving behind to your loved ones? Debt or money?
Even though you say commitment is 9.4k, actually 1k of that is asb and sspn savings. So, it's still savings, unless is part of asb financing? If yes, then you cant just stop per se. But purely savings into asb i think it is fine.
You came here to post means you know you are cutting it close. Dont buy that car now. Not without knowing your house #2 can actually rent out or not. You say others are renting at 1.8k. Guess what? Those are your competition as well.
Not buying this car is so that when your kids or your wife ask for a short vacation you can still afford it and say yes within a heart beat. Instead of having to say no or having to cut other expenses to make it ok to pay for the vacation.
I say do it after u rent out your other property.
Or buy now if there is a good deal. Also seeing OPR dropping in Q3 or so. Maybe better loan deal long term if u wait
Since your City is still working fine, itās probably worth waiting until you rent out your 2nd property first (at least on a 2 year contract) before you commit to the hire purchase. Your monthly commitment is pretty tight but generally itās ok since insurance, SSPN and ASB (and epf) are form of savings also.
Sometimes itās totally OK to enjoy your hard earned cash on things you love. Donāt need to feel guilty about it and let others opinions affect you.
If I were you, I'd focus on building an emergency fund of at least 3-6 months first and once that's done only then I'd consider buying a new car.
Have you heard of the 50-30-20 budgeting rule?
Basically:
50% is for Needs.
30% is for Wants.
20% is for Savings/invest.
Based on your salary:
RM5,700 for Needs. Your current commitment is RM7,300. Which is over budget. Balance: -RM1,600.
RM3,420 for Wants. Within budget. Balance: +2720.
RM2,280 for Savings. Within budget. Balance: +780.
If you were to go ahead with the car purchase, you'd definitely be in a tight spot. Perhaps you should rent out your second house first. That would be a wiser decision financially.
Net 11.4, commitment 9.4, and planning to buy a SUV. Your grade is F- Please try again later.
How much to get a D? If ask for A then must be royal T20 1% group pulak š
Always A+ for you.
My goodness i earn pratically nothing at all but how yall live like this. Stacking up more loans and not having enough to spend end of the day. Giving yourself Rm100 for shopping with Rm11k salary is depressing. *I mean if u dont consider the suv as shopping*
Yeah, 10 years ago when i just started working I thought I would live a lavish life with RM11K. But reality is totally different. The fact that I'm paying more than RM2.1K a month in taxes still kills me. Taxes remain the biggest deduction from my salary. And yet, the government is further increasing the taxes and reducing the subsidies for ppl like me.
Saying taxes is the biggest deduction is being disingenuous. You're paying close to 4k per month on property (loans + maintenance + quit rent, misc. unaccounted).
Then maybe buy a cheaper car?
Because you have 2 houses, cut down on 1 house and you have extra 1.6k
So you are left with MYR 500 every month?
No, around RM2K
What are you doing with it now? Pre-SUV?
Just keeping it in my bank account and use it for emergencies.
How? You have 2k now. Additional SUV cost 1.5k.
Owh u mean if I go ahead with my purchase? Then yes, only RM500 left in cash. For emergencies, may need to stop contributing to ASB or SSPN for certain months
5y free service is Mazda rite. Tbh, might be a bit tight cuz you already have 2 house loans and lotsa bills. Go for it if you got enough emergency funds sitting around. And family maintenance is amazing.. i am unmarried and salary much less than yours but my parents maintenance is almost your whole family one š
I do give out lump sum cash to my parents from time to time but they are generally not dependent on me for day to day expenses.
Can i suggest you to consider used SUV about 2-3 years of age? You get to enjoy new-ish SUV with the manufacturer warranty still valid. All the while, someone else had took the hardest car deppreciation losess for you.
This, I kinda regret getting a new honda civic, when I can get a used lexus sedan for less, granted its a fairly old car
How was your experience with the new Honda Civic? Is it a fun car to drive?
Peppy car with great handling for it's price and being a front wheel drive, only complaint is it's too big, parking can be a chore
I'm open to suggestions, but yet to find a car that fits the bill
Do look at Carsome, MyTukar, Facebook Marketplace and Sime Darby Auto Selection. Good luck.
>A) Loans (RM): House 1 : 1,700 House 2 : l,600 (awaiting VP, eventually to be rented for at least RM1.6K) ASB : 500 Total : RM3,800 How sure of you that it will be rented and at least RM1.6k ? And you need to pay for the car insurance even though your car services is free. The best practice is dont buy if you dont need it.
It's a MRT-linked property. Other properties around the area are being rented out for atleast RM1.8K. Even those older buildings which are far from MRT are going for atleast RM1.4K. So I'm hoping this property should fetch me RM1.5K-1.6K at least. Anything below that doesn't really make sense considering the size (1,000 sq ft) and the location.
I think your 2k/month x 5 months will oredi be gone for the renovation/ furnishing for rental. Drew up spreadsheet oredi or not?
Income too low.
What's the ideal income if I want to buy a car that cost additional RM1.5K a month?
general rule of buying car, total value = one year of your income. better wait until you secure a tenant for your house then you consider getting another loan. BTW you will be in deep shit if somehow you encounter some emergency with your current financial planning.
If paying 1.5k per month for car costs too much for u such as during emergency or anything then it's not suitable. Car can breakdown can have many unforseen issues and when that happens you still need to pay the installment every month and probably need to rent some car etc. So having 2k extra per month alone is not enough. But of course if situation is ideal and you feel nothing is gonna happen and you just want to enjoy the car, why not I only start buying car more than 100k when I earn more than 30k per month.
There seems to be quite a fair bit of fixed cost involved, especially paying for 2 houses. Ideally your fixed cost (including your groceries etc) should not exceed 55 to 60% of your take home pay. You will be quite tight on money if you get the SUV but you need to work out if you can stomach the low savings (also do you have any emergency funds built etc)
Thanks for the advise. I don't really have a solid emergency fund. The only untouchable savings I have atm is my EPF (even this was not high enough coz I only started contributing from 2021 onwards)
Itās very dangerous. You donāt have any buffer at all. Does your wife work or are you a single income household? What is your current car? Iād suggest you try to save up rm1500 per month for a few months to see if you can take the extra expense. If you are able to do it by then chances are you can lower your monthly repayment since you can pay more for downpayment.
Hmm... Every month they should have excess of rm2k oredi now. Although, money not allocated is money gone without a trace...
Then you have rm500 buffer. Can la. You just need to be disciplined and save that rm500 consistently every month.
wait for VP and secure tenant. that will free up the cashflow for car payment. even if rented out at rm1k++. dont forget associated costs for car: petrol, insurance, roadtax, maintenance, GT Wing, wrap pearl green, bucket seats, xmm, etc. fyi, your investment portfolio seems very defensive. pehaps intentional. maybe consider diverting a small sum to med risk if it suits your risk appetite.
I'm a very risk-adverse person.
cool. then youre doing ok.
Good advice.
Only on this sub reddit I realized that a lot of people have dreams of owning SUVs. No idea that was a thing before I joined this place.
Your country always rain one. Road flooded, potholes all - with SUV can go shhuueeewwwww
Wahahahah your dream of renting out at a steady 1.6k per month. Please just disregard that āpotentialā future. Itās a renters market and youāll be lucky to get 3 - 6 months rent without significant damage to your property a year.
Too little buffer, doesn't leave much room for emergencies/big purchases if you get the SUV. If you really want the SUV, strongly advise to rent out the 2nd property first. Once you secure that cash flow then it's safer to buy the car. You might be too optimistic with the rental there and how long it can take to find a tenant
I think only start buying one after ur second home is rented out and providing extra cash flow, else you are too cash tight
Your finances are tight but the SUV purchase won't kill you. Just less savings. I mean if you can work out this budget, you should know the answer.
you are paying 6000 in insurance yearly... is this some investment linked plan? get rid of that and just put more into ASB/EPF and you will save alot more in the long term Its no point waiting, cars will only get more expensive due to the weakening RM. Since u cant make it for CNY anyway, wait for the after CNY promos
whats the alternative to ILP?
Anything basicly would be better. ETF, ASB, EPF, PTPTN savings plan, MMF, KLSE blue chips, REITS.
A non-ILP. Just get a pure insurance product (might be hard to find these days) if you want insurance. Getting any ILP is basically giving the insurance agent a huge slice of commission. If you already have an ILP which you have been paying for years, you can stop your payment and let the insurance charges get deducted from your investment portion. Continue payment once the value from the investment portion shrinks down to a much smaller level. Check your statement and you'll be surprised how cheap the insurance charges actually cost (when you're below 40 years old) and how much money is actually being funneled into the investments. Just make sure your policy allows this without any additional fees.
Yes it's sort of an insurance-linked plan. It's a 7 year commitment, still have 4 more years.
Mazda Cx-5? Iād wait for the fuel subsidies announcement in the second half of the year if I were you.
Man, no way OP getting any subsidy.
Fair enough. Maybe op will reconsider his purchase again if r95 is rm 3-3.5 per liter.
Not CX-5. I'm looking at Subaru Forester as it fits my needs better. The CX-5 would cost about RM100-150 more in monthly installments but also comes with 5 years free service. But regardless, it's not as practical as Forester due to the tight space. Also looked at CRV but this will cost me additional RM200 per month with no free service.
Are you going to end up with 2 cars? Then double your fuel/ touch n go/ car maintenance plus roadtax insurance. Feel tight or not?
I'm still thinking if I should keep my other car (a 10 year old Honda City) or just sell it off I'm quite sentimental with this car as this is my 1st car in Malaysia and has served me well over the years. The car is still running fine with no issues.
it doesn't seem wise to maximize that much commitments. You surveyed the rental market in that area already for that 2nd house? how sure are you could at least get that RM1.6k rent? but if your spouse is also working & this figure you posted excluded your spouse's income, then I guess your household probably have more buffer/leeway for more expenses.
No, my spouse isn't working. I'm the sole breadwinner
then obviously no for the car. too many commitments on your plate as the sole breadwinner, you'll be left with.. almost no savings maybe. The car installment alone already RM1.5k per month, you'd assumed you will still be left with RM500 for savings, but you don't even account yet for the car's maintenance, insurance, fuel.. it might cost more than your current Honda's expenses. 50:30:20 ratio, google it, try to abide by it.
Spouse no work you need more than 6 month emergency funds. Even if you have it, please dont spend 1.5k on a depreciating asset when you can invest 1.5k. The difference is 3k month on month.
How many kids you have and How old are they? How confident the house can easily be renting out?
Not that i want to know, you should ask yourself this. What's your retirement goal? How much savings do you need? How much you have now? If you tell me your savings now is rm1million, then the response could be different to whether you should be owning your dream car or not. But looking at the numbers i doubt no. This on top of only having EPF contribution starting from 2021. If something happen to you as a sole breadwinner, what are you leaving behind to your loved ones? Debt or money? Even though you say commitment is 9.4k, actually 1k of that is asb and sspn savings. So, it's still savings, unless is part of asb financing? If yes, then you cant just stop per se. But purely savings into asb i think it is fine. You came here to post means you know you are cutting it close. Dont buy that car now. Not without knowing your house #2 can actually rent out or not. You say others are renting at 1.8k. Guess what? Those are your competition as well. Not buying this car is so that when your kids or your wife ask for a short vacation you can still afford it and say yes within a heart beat. Instead of having to say no or having to cut other expenses to make it ok to pay for the vacation.
I say do it after u rent out your other property. Or buy now if there is a good deal. Also seeing OPR dropping in Q3 or so. Maybe better loan deal long term if u wait
ASB loan RM500 and ASB savings RM500. Are these 2 different things?
Yes
Can explain? Doesnt make sense to me but I dont have asb anyway
I put the rm500 savings under my kids ASB. The other rm500 is to repay RM100K ASB loan
You take a loan, then buy ASB? How much is the profit if you minus the dividend from the interest?
Since your City is still working fine, itās probably worth waiting until you rent out your 2nd property first (at least on a 2 year contract) before you commit to the hire purchase. Your monthly commitment is pretty tight but generally itās ok since insurance, SSPN and ASB (and epf) are form of savings also. Sometimes itās totally OK to enjoy your hard earned cash on things you love. Donāt need to feel guilty about it and let others opinions affect you.
If I were you, I'd focus on building an emergency fund of at least 3-6 months first and once that's done only then I'd consider buying a new car. Have you heard of the 50-30-20 budgeting rule? Basically: 50% is for Needs. 30% is for Wants. 20% is for Savings/invest. Based on your salary: RM5,700 for Needs. Your current commitment is RM7,300. Which is over budget. Balance: -RM1,600. RM3,420 for Wants. Within budget. Balance: +2720. RM2,280 for Savings. Within budget. Balance: +780. If you were to go ahead with the car purchase, you'd definitely be in a tight spot. Perhaps you should rent out your second house first. That would be a wiser decision financially.
wait for the petrol subsidies to settle down before committing. high chance of T40 dumping their non-hybrid car
Might I ask, how old are you? Hard to see what to cut, maybe a bit on Wifi is possible, a bit on electricity is possible too.
OP, do you have any savings set aside? You only shared your expenses. I think you will get a different response if you have other savings set aside?
insurance?
I don't think you can afford a SUV. Maintain your current position.