Guys how much do you think is enough to have a moderate lifestyle in kl with sole passive income?

Assuming a family with 1 or 2 kids and debt free, free from housing loan and car loan.

To me, no amount money is enough. What happen if my kid grow up want to be a doctor? at UK. (RM8 million school fees?)

but have to make sure u're free from any illness...

How to have passive income?

Rental, blue chip dividend.

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Added on August 9, 2012, 2:11 pmWhich mean you cant retire at any age.

This post has been edited by Ansonian80: Aug 9 2012, 02:11 PM

no amount of money is ever enough lol. it really depends on one's living lifestyle

personally think rm2k per month sudah cukup.
but that's just me and my wife.

If you don't have to pay medical bills, and you lead a simple life, it might be sufficient.

if you quote extreme scenarios, any amount of money will never be enough. but if you're a person who leads a simple yet contended life, and with little commitment as mentioned by TS, then you do not probably need that high of a passive income.

2k with medical insurance?
Some travelling? genting /Singapore/hatyai.
Emergency bill eg weeding angpow ?
Astro ?
Medical like vitamin. Chinese medicine/herb ?
sometime mooncake?
Entertainment cinema. Some bir .book
house paint. condo maintenance. car maintenance. house repair this and that. electricity?

Brother. u better target higher

plus inflation every year...

depends on what lifestyle u want.

I would say very subjective.

Depends on one's level of needs and wants.

I've seen a lot of my frds can survive with just an avg salary.

I've seen some got problem in saving despite earning in a higher bracket income.

Like what Taikor Kochin say, 2K is enough for him.

TS,

Interesting topic to discuss but you can narrow down into few more situation and details to ease the discussion

monthly without commitment without loan
i would say RM10k per month minimum for a family.

So every month can go travel around

kochin, sure bohhhhhh??

not rm2K right? is US2K per month for u n wifey

For me 10-12k monthly passive income is good enough to have a moderate lifestyle in kl but some friends told me is far not enough with tat amount. I'm just trying to seek other opinion.

I read thru one article in newspaper last 5 year it said ordinary person need RM4mil to retired, i think now need double...

I think Kochin is saying 2K ( inflation adjusted) each .

So combine is RM4K per month for both of them.

If he really mean wife and him only need RM2k per month. Maybe Kochin taiko need to migrate to Karala town - Cochin.

This post has been edited by tikaram: Aug 9 2012, 07:08 PM

I think RM2k/month can provided only pay astro, phone bill, internet, water bill (selangor folks mostly zero bill) and just pay for foods and petrol.

For me i budgeted 10k pm for me and my wife

5k to 10k/m is sufficient for many

the issue will be big ticket items like education costs, weddings, repairs for cars + houses, replacement costs for cars + electrical items, health insurance

Assuming a 10k rental per month, probably the person has a 5 mil worth of asset. Instead of just keeping the asset for passive income, maybe can sell it off and burn the 5 mil over 20year ( assuming the person still have 20 years of life after retirement ), then each month can spend 20k. Kekeke .....

For me, comfortable passive income would be nett RM 15K / month

Are you talking about RM15k pm x number of years from now, or you are talking about if you are at the age of retiring now, and yet you need RM15k pm for a comfortable living ?

Boss, I mean now.

Not after retired

Wow you sure have a heavy life style.

Wah everybody so rich here. 10k active salary also diFficult let alone 10k passive income...

This post has been edited by jucl: Aug 9 2012, 10:14 PM

10k passive income is not a diff task. One must hav discipline to achieve it. It may take u many yrs of discipline to finally get there.

The question is not "How Much" Passive Income

The question is "How" to get Passive Income????

Assuming 10k is clean net after minus all the loans.. Very challenging leh

Very True

I think not about how much you want after retire, it's depend on how you adapt and appreciate what you have by then. Try to satisfy yourself with that "LIMITED" resources you have. Someone poorer may have a happier life than a richer one. No point one have plenty of money but don't know how to enjoy, appreciate and spend too.

Wah so many rich people here.

Most said need 10k.

I should start a buz opportunity targeting all super rich retired lowyat member.

We often read from newspaper "
Average epf for retired Malaysia only 200k only."

So . How most poor Malaysia going to meet day need if only need 5k? 1/2 of yours?

I just check with my wife. we need around min 3.4k at current inflation rate.( we don't go overseas. No expensive lifestyle like golfing. no need to support kid. no debts. but sometime spent un-necessary money drive to malacca just eat something. spent money on pet . buy lots if illegal dvd . gift for grandchildren and gardening tools things.)
what yours?
Just want to share this

I'm also looking for the answer but i know it's not an easy one. My active income have not even reached 10k. 10k passive most probably can revisit when i gear up myself financially.

It is very true. medical is the most costly .

But don't ignore prevent illness cost . ask this cost is in continue.
Vitamin or milk or cholesterol control
Medical check up
dentist
Sport equipment
Insurance medical
Hiring care. if u are not fit enough

But if u have this prevention cost u will able to save alot on hospital or surgical bill .

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Added on August 9, 2012, 11:19 pmi have one question.

Could it be not how much rm need?

It is how much rm that we have so that we adjust our lifestyle to enable us live moderately. so at the end event kochin 2k is enough. not kidman 10k?


This post has been edited by yankicip: Aug 9 2012, 11:19 PM

if no commitment no outstanding debts
spending only on lifestyles i guess 3k wud suffice
for me alone...

Didn't know all rich kia around.
10k passive income is merely like a dream to me, same to a lambhorgini

To me, there's an inflation rate happening. So a constant passive income is not enough for every future years.
I need an increasing amount of passive income to cope with the stressed inflation rate and make sure money is enough

Rental income will be like that, it will appreciate over time.

@yankicip, actually it's seriously depending on individual, i think 2k is ngam ngam ho providing you do not have much "WANTS" in life. Personally I'm targeting 30k passive + active income by the age of 40. I have quite alot of greed to be honest. Stay in a luxury studio apartment and own at least a German ride. Oversea trip quarterly with my love one and when my parents or siblings need financial assistance it would not be a problem for me to provide them. That's basically my GOAL. Not to mentioned as we grow older and when age catches up the medical expenses these days are terrible.

*So many ppl had to shorten their life just because they could not get a proper medical treatment. Poor them to those earning < RM1.5k and no insurance.

tapi urs is inclusive of commitments....

From kochin's 2k, a few people 5k, a few 10k, also got 15k, now we have someone who needs 30k by 40 yo. Soooo geng !

everyone appetite is diff....

yaya now my active commitment is RM3.5k monthly. This does not include Car breakdown repair bills, when my mum no money use i give her some and etc. I think RM30k enough already la. Gonna make sure my expenditure is as low as possible still. I've maintained my active commitment at RM3k - 3.5k for the past 3 years hope it would be the same.

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Added on August 9, 2012, 11:39 pmHaha you don't need that much money ah puchongite? Everyone's target is different mang. Since mine is reaching the tipping the 4 figure salary and i have so many more years to go before 40 of course I set a higher expectation out of myself.

This post has been edited by kidmad: Aug 9 2012, 11:39 PM

Things will get more expensive over time, so it won't be able to be the same for your expenditure there.

But 30k passive is..
Renting 100 units of property every year?

considering if he dun have any outstanding loan d...
i think no need so many kut

30k rental could just be one or two shoplot's rental.

Oh really? That could be an awesome shoplot inside KLCC.

Provided he did paid all the loans acquiring the shop and the rental is purely positive cashflow

its hard to survive

Dun b surprise to learn tat full house restaurant is paying 48k for Giza shop. If I'm not mistaken. And it's onli 1 unit.

LOL
This thread is not about surviving anymore, people are making money and bring it up to the next level which is passive income

The title speaks it out. It never mentioned that it's for survival purpose if i read correctly. haha

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Added on August 10, 2012, 12:59 ammang if you are going to survive only on rental alone then what happen if there is crisis in property sector 10 years down the road? Now adays we need to learn h ow to diversify. HAHAHA

This post has been edited by kidmad: Aug 10 2012, 12:59 AM

RM2k per mth??? For u & wifey but your children need another RM5k per mth?

RM2k per mth not enuf for their Beacon house mthly school fees

IMHO passive income of RM5k to RM6k per mth at current rate is comfortable enuf for retirement. Mind you this is passive income, you can probably draw some additonal income with your free time such as brokering some deals or sell stuff or consulting.

On the other hand, I know of 60+ y o men who draw RM2+k per mth crying because their annual contract was not renewed - money is never enuf.

For me I will retire once I am eligible to withdraw my epf (55 or will they change it to 60?) no matter how little my passive income. There are many thing in life that is more impt then chasing money.

BTW retirement does not mean you go buy a german car, europe vacation or change h/p every 6 mths like that RM15k passive income oso cannot retire.

This post has been edited by rakyat: Aug 10 2012, 09:27 AM

im impress that 2k is enuf for both of u

2k is possible if living in countryside but continues to generate passive income from KL. I admire his mindset to make life easier with easier goal and commitment.

U r from Teluk Anson?

I would respect people who have humble needs.

And I am more impressed with people who need net 30k for their retirement passive income.

This post has been edited by puchongite: Aug 10 2012, 09:29 AM

but still 2k is nt enuf...depends where u live..in KL? 2k? hardly

2k is enough if you lead a simple life. For example, if you stay in your own landed house, here is some estimate :-

Electricity = 150
water = 20
G&G maintenance = 50
Petrol, transportation = 200
Food RM50 per day x 30 = 1500
Medical = either insurance or go to government hospital

What do you think ?

too tight, gonna tighten belt every month, life can't go long....3k is more comfort for countryside, KV at least 8k, 12k will be d best for me.

Haha you guys are not talking about minimal retirement life. You guys are talking about WHAT IS THE RIGHT AMOUNT OF MONEY TO LEAD A COMFORTABLE LIFE. 8k per month, a lot of people never make that amount of money in their whole life.

How old are you? To reach 10k passive income, i think one need net asset networth of 2mil. As long you can perform 6% p.a you can get RM120k per year. If speaking about 30k passive, it is quite challenging in fact very few malaysians can make it. Perhaps less than 1% of the population but still achieveable. Only need 6mil what

friend we are talking abt "moderate liftstyle" since begining...moderate is not poverty, moderate is not luxury...but just comfort to stay.

Still, 8k to 12k is a lot of money.

I think you are more thinking about using the full passive income to continue to support the entire family, including kids educations and their property purchases' down payment, their car purchases and so on.

That's not quite a 55-60yo man's retirement life. A retired man is only expected, in the best case, support his ownself and his spouse plus a bit of leisure activities. His kids support needs are considered BONUS when a man retires from working.

Hoho not that old yet. Working pretty hard to archive what i've targeted. Mine is 15k active + 15k passive. I'm planning into business hopefully not too long. Need to have asset worth 1.5m.

Bro, mind to give some tips? will definitely appreciate that.

Btw, noob question. Passive income means the income from rental provided the loan already fully settled? Am i right? Passive income doesn't mean u r renting the house to someone else but at the same time we still need to serve the monthly installment? Sry, i am the very newbie here.

The surplus of your rental received less the instalment is your passive income ..

sigh! why everybody so kpc? sorry to intrude on TS.
and to clarify everybody's doubt.

i live a very average and normal life. no astro, no smartphone (cannot afford either). average or simple meals. wear 10 year old shirt for work. cut hair at mamak saloon. send kids to national school.

if you think properly, without loans and assuming just you and partner, how much do you need per month?
utilities alone, say rm300 more than enough right?
medical, if buy in advance, doesn't cost too much also.
for food, how much can you eat if retired? every meal at rm10/meal also rm900per month for 3 meals. but do you really spend rm10/meal all the time?

of course if you factor in purchasing stuff for parents and kids is another story liao lah.

for me and i believe most ordinary people. RM2k per month is doable as of now lah. my parents are averaging <rm1k for 2 person per month.

just to add on a brief thing that pops in my mind.

to make it work, can we assume the following:
a dual key unit in a location preferably close to mall and/or lrt.

rent the small (perhaps even the bigger unit) out to take care of the:
1. assessment and quit rent
2. maintenance and sinking fees
3. utilities bills

do not own a transport (if absolutely cost cutting measure) else can still have one but use sparringly. actually for well developed area, a train or bus is quite affordable one.

have you checked out all the deals of off peak hours meals from restaurants. it's always 30-50% off or buy 1 free 1 scenario. take a peek at those cafes or even chained restaurants sometimes on their offers.

i'm pretty sure this is pretty workable.

eg. a typical day would be getting up and swimming/gym in condo. go to the mall for breakfast + paper. laze around in bookshop or go for a movie. go home and cook dinner.

quote another example, an uncle i know, stay nearby mutiara d'sara. he practically goes to tesco or 1 utama everyday. just laze around, having a cup of coffee or so. stayed in bookshop reading or going for a movie or so. simple yet quite stress free lifestyle with minimal cost.

PS: for rm2k per month based on 5% yield, if you have half a million now also can realise already. except you need to make sure you oledi got a unit as i mentioned earlier. kekeke.

Noted

yeah i agree. I lead a very simple life too, do not spend $$ on stuff which I do not need. Happy with my old phone and 'old' office clothes which still look new. I think many men do not spend money shopping for clothes, shoes, bags, fashion wear. Many ladies tend to have a wardrobe full of clothes, and their sandals and handbags always 'give way' after 3 months, so we men buy new ones for them. Anyway, the whole point, if the person leads a simple life, it's possible to live with meagre passive income. And leading a simple life doesn't mean that you have to suffer. Yes you may have to forgo that Europe vacation or German car, but hey, we can still enjoy in so many other ways without splurging $ and being materialistic. I guess it's just a personal choice of how much passive income you require.

This post has been edited by abhipraaya: Aug 10 2012, 05:26 PM

Rm2k-rm4k..

Hmm not qualified to giv tips la. But s I know s long s u hav 50% of cash in fd over the loans u owe the banks, then it's achievable. Provided the prop value is more than 5mil at purchase price with min 8% roi on purchase price.

By looking at the above, it's more than 10k after deducting loan interest. And remember rental ll increase overtime. Maybe one day after clearing the loan, when u need some more $$$, u can refinance those props again, and keep some more cash in fd and start the process again. It's might b 20yrs later. Who know maybe rental ll able to b at 8% over the refinance amount.

Sori, I tok onli. Pls dun follow wat I suggested. It might not make sense to many ppl.

Ask 10 pp.

Wake up go to mall. read free book. Back to home. sleep. repeat.

maybe only one wants to retire like this.

what you saying makes perfect sense to me and in a way am practising what you have been preaching. just hope i can see it through.

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Added on August 10, 2012, 10:49 pmactually ask yourself what woould you do if you are fully retire. for the life of me, i have no idea at all actually.

i reckon my typical day would be:
wake up, breakfast.
spend like 2 hours for newspaper daily.
then maybe checking mails and talk cock in forums?
then lunch or do some errands. maybe fetching grandkids?
then napping time?
then dinner liao or yum char with friends?
kekeke.

This post has been edited by kochin: Aug 10 2012, 10:49 PM

Wah so simple.

Where is the dentist bill. Annual medical check no need.Repairing house. replace tv. replace electrical times. vitamin . heath products. Emergency bill mana birthday or aniversary or new year grandchildren clothing or angpow. no need to replace underware . sampol is free ka. car road tax and insurance. car never need repair maintenance ka? And etc

This post has been edited by yankicip: Aug 10 2012, 10:54 PM

Oh boss u oso doin tis? Not bad. Next time can share share idea k. Tq tq.

like that u will mati early.

Try to make more things happen. example invite friend / or neighbours to your house do some cooking/ makan together. this will spice up your life. but sure cost some extra money la

Try to have some hobi . Learn music. do some exercise eg yoga. do some games like ping pong. gardening. community recycling charity. church activities go here go there. do some small buz.
Small buz is not for making profit. just to make yourself busy. someone retiring sharing here.

This post has been edited by yankicip: Aug 10 2012, 11:38 PM

i confirm fail in this category. Every year need new PC / new look. Every quarter need to change smartphone. Last year itself changed 10 phones in a year. Weekends usually spend alot on food RM50 - RM100? Even weekdays working also spend alot.. Cyberjaya food is Freaking expensive.

Lucky i no go clubbing, no smoking, don't fancy expensive cloths, don't simply buy things except for phones and PC hardware. Driving a cheap car. hehe. But seriously bro. RM2k enough meh? You never thought of "wan yau sai kai'?

Money not spend is not yours

YEAH man. Lol.

kidmad,
TS did mention life moderately mah. am just saying i can do it for rm2k/mth.
but would i want that is a separate answer.
i'm more analytical kind of person.
although i have not look into my retirement as a whole but i reckon i would sub-divide it according to categories.
eg.
1. $$$/mth as living expenses from certain source (this could be the rm2k/mth kinda expenses)
2. i'll probably set aside a lump sum for medical
3. a lump for emergencies
4. a lump sum to generate and refill my travelling needs
5. an automatic plan to ensure i get to continuous downgrade my vehicle purchase every 5 years or so for the next 20 years at least

let's work hard and hope for the best lor.

to me moderately = live the life i want. so for you RM2k also not enough la. haha

What is the number one most enjoyable thing for you guys? For me, it is not driving nice cars or living in a big house or wear new clothes. It is eating out at nice restaurants with good food and everyday try new food and new ambience. I spend few hundred dollars very weekend on food alone. I am much much poorer because of my consumption habits but what the heck! This means my retirement will definitely need more than RM2k-4k per month.

Nothing much interest me except food. Any recommendation on some fun things to do? Must add some spice to life.

It's good to have passion for life and you enjoy what you are doing. But I think when a person gets to retirement age, his consideration for food will change. All the expensive food he will have second thought because most are associated with high cholesterol. Sure lots of people are on high cholesterol pills so that they can continue to "enjoy their lives" but little do they know those medication can bring about other side effects which can bring negative impact to their quality of lives too.

depends on ur lifestyle ... assuming no kids . All grown and busy with their work and u dowan to financially burden them .. Rm 900 will do to have a comfortable life.

Can list down your 900?

Consist of?

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Added on August 11, 2012, 12:48 pm+1


This post has been edited by yankicip: Aug 11 2012, 12:48 PM

TQ bro for the tips. Although i don't fully understand it but i do appreciate your reply I will need time to learn and plan accordingly then may be by that time i will be able to digest it. So many things to learn from here!

U never mentioned spending time with ur wife wor May be u massage her shoulder and she massage ur shoulder everyday for 1 hour or 2? Then go morning and evening walk together holding hands?
I remember once i went to Finland i saw a couple probably in their 80's sitting on the bench and they are reading the same newspaper while the wife is holding the newspaper and the husband just put his hand over his wife's shoulder. Then there is a cup of coffee at their side ... Simple and relaxing and not forgetting to be romantic!

targeting simple retirement shouldnt be hard if you join gomen job with a manager title because after retirement you will still get half of your pay about 3k if im not mistaken. go gomen hospital can get first class service and very very cheap medicine. wife and children also enjoy similar benefit. house and car loan damn low interest. my father is one of them and enjoying his life now with my mother. every yr still can go oversea trip, astro, smartphone, and go out eat every weekend. but of cos not those EU or US trip lo. imagine if you have prop rental out with passive income about 2-3k, then overall you will get around 6-7k monthly. with that money not enough for you?

my plans for retirement are as follows:

- move to small town
- decent size land with small house and a small pool in the backyard
- grow some vege plus have some chickens and few goats for personal consumption, rest of food essentials can buy la
- cheap malaysian car for use esp if need to come to KL to check on my props, otherwise usually motorbike around town

Budget per month
food - 1k
tnb, water, internet - rm150 for me astro is a waste of time and i dont even have it currently.
car and car expenses - rm500
books, magazines etc - rm100
replacement of electrical stuff n furniture due to wear n tear - rm300
misc expenses - rm200
clothes - rm200
gifts n ang pow - rm250

total less than 3k for wife n myself

Add in another buffer for 2k/month to help with savings and other unforeseen expenses... As long as my passive income is 5K, im done with working. target in 7 years

good plan ruben!

pensioner versus private:
1. tenure of payment
pensioner gets progressive payment until you die.
private is one off and up to individual's management.

2. benefits
pensioner gets all sorts of assistance like medicine and adjustment of increment and bonuses even after you retire.
private - zilch.

i agree that pensioner especially those in higher income bracket can lead quite a good life after their retirement. especially true if the person have surplus $$$ invested to generate extra income.
maybe i should opt to switch to gomen in my last 15-20 years of careeer life? kekeke.

Liked. Liked again.

Hey thanks Kochin... was motivated by your post, I find a lot of similarities in my expenses and what you posted pages ago.

Yup I realized that too on working in private vs gomen... unfortunately Im in private also... my parents were in govt and retired from there, full medical plus pencen, damn nice!

To all the retire property investor.

You guys could be the richest person in our society. go and spend your money.the economy need it.

Money not spend is not yours.