Are you a median income earner? You are probably what the Japanese call a salaryman. It means you work for your salary. It’s not wrong to do that but many believe that if you work as an employee, you can’t build wealth. That’s not exactly the truth. When you earn 48k a year, you’ll have a tough time enough building wealth but with a disciplined lifestyle and a strict budget, you can do it and if you’re planning on getting married and have a family, this plan is still applicable and you should be able to build your personal wealth while building you life.
First of all you need to find a cheap place to stay. If you’re working in a bustling city area, we’ll advise you to look for a place where you can share your space with other people. Even better, if you can rent the home and give out the rooms and charge people more. This way you can get them to cover your portion of the rent. If you earn 4k a month, you can simply use around 500-600 for your portion of the rent and utilities. You should spend around RM 200-300 a month on your food and maybe an extra 100-200 on your transportation. If you’re living in the city, you should skip on leasing a car or even getting one. Public transportation will get you anywhere.
Next, you can even invest your money in a forex platform Malaysia . Money invested here will never lose value if you know how to invest. You can also set aside around 1300 for your investment and savings. 1000 for investments is a great place to be at and it will allow you to have some stability financially. By investing it might put you higher on the tax bracket. To avoid getting taxed more, you can contribute more to your EPF and even make a private retirement fund in any foundations. This would allow you to reap the benefits of your earnings when you’re older. You can also invest your money in mutual funds to get 8-10 percent returns each year. Imagine if you invested 1000 every month, you’ll have 12,000 in that year. A 10% return would mean you will get 1200 a year by just putting your money in mutual funds.
There is also a high probability that you will increase your income when you go older and climb up the ranks. If you plan on having a family, you should set some money aside early on for your potential expenses. If you’re buying a home, get a loan from an Islamic bank for low rates. You can also pay a bigger down payment and avoid paying more for the interests. If you’re thinking about having a child or two, think about the potential costs and how you can reduce your costs. You can buy neutral clothing so that both of you children can wear them as children outgrow their clothing very quickly. Children’s clothing is also very expensive so you can actually cut costs with this idea.
Now that we’ve shared some ways how you can maximise your 48k a year income. It might not be easy with inflation and all but you could take the advantage of the market while its still low. We hope you make it big with these tips and tricks.
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