'Do you have RM200,000 CASH by 30?'

Why do you need RM200,000 in hand when you reached 30?

1. Well, as you refer to my previous post, you would know that RM100,000 downpayment for a RM500,000 house with a 30 years loan @ 5% interest rate would amount to a monthly installment of RM2,147.

2. Besides the down payment of RM100,000 that you have to pay when you buy the house, you need to reserve some money for house renovation and furniture expenditure. You may also need to pay for one or two car loans every month. What about a wedding expenditure for your sweetheart? Approximately, those expenditures (renovation + furniture + cars + wedding expenditure) would amount to RM100,000.

3. And that means you need a minimum cash of RM200,000 by age 30 if you plan to get married and have a family at that age (or at least have a house of your own). Basically, you and your family would just be able to enjoy a normal lifestyle in a double-storey house in Klang Valley with one or two cars and yet would still be heavily in debt over the years. (Note: Do take note that the housing price will increase over the years and in this calculation, I am assuming that the price of the house remains the same.)

4. That is the result of the high cost of living you are going to face in the future and you better be prepared for it if you want to provide a comfortable lifestyle for your family.  

5. Let us take action to provide the best for our family. Let us start by understanding our greatest money making asset that all of us have that would generate us millions of ringgit in the future. 

Stay tuned for the next post...

The above is for educational purposes only! Readers should conduct their own research and make their own decisions.

You may contact me at writetogeorgeleong@hotmail.com or 017-6593817 for financial consultation :)