Unavaidable depends on how you yourself terms it.

"Unavoidable" happened when you got that $$$

What if you don have that $$$

For example:

Some may think that vacation twice a year is unavoidable.... But how about the poor?? For them unavoidable is their food, drinks and clothing only..

Rather than reduce at variable expenses, can it be increase your earning power?

I don quite agree with that. 2k is certainly not enough considering the rising inflation. Of course if you can to stay poor then no comment. But if you want to have a better life and hope that your children to have a better life 2 k is certainly not enough. I started worked 3 years already. I din spent on branded stuff, mostly eat at home. But for me 2k is certainly not enough though. I think we need to save at least 1k every month for the future. Next time when you got children you will find it get even harder to save.

good that parents can support. all my ptptn ends up paying in fees, plus have to top up to pay, owe 70k to ptptn, now still in negative networth territory, may go into positive end of this year.

3 years , the debt is still there... 60k ++, now still slightly negative.
as darkkngiht say 1% ptptn, no in a hurry to pay it off, just follow the schedule so that i dont deny others of borrowing ptptn.

This is very true..yet its hard to stick to this principle.. the problem with today modern living is that everyone is buying more and more of what they cannot afford.. its a lifestyle that is expected by your peers, family and friends. For those that could afford it well its ok la, but i cringe at the sight of a guy that buys the latest handsets gadgets and gizmos but only take home a RM2000 salary.

Most people will face peer pressure at all income levels. I'm just relating my personal experience. I'm not a manager. As my salary increased, I spent more, but also managed to save more. Peer pressure exists of course, but luckily it doesn't affect my expenditure that much.

Proper management I would say, but if I were to have 15K a month, the temptations to splurge on things that you would like to have or own is hard to resist..

Like my friend used to rant, if only he can earn 5K a month, well after having 5K, probably he will hope for more, as he is used to spend like 70%-80% of his income on car loans, credit card payments etc etc...

I was having a conversation with my colleagues after work. Most of them are fresh graduates on their first job.

We were discussing how much can we save with a salary of RM1.3k.

I was shocked when most of them were suffering a deficit about RM200-RM400. Some even resorted to ask additional money from their parents.

Worst of all, most of them were locals of the state and were staying with their parents.

How could I from another state who had to pay for rental and surviving with the salary paid be able to save at least RM300 a month?

Geez, these people spent too much unnecessarily.

Different people different needs. Anyway, that is call no financial management + discipline.

damn KL life. but salary of rm1.3k really..... hard to save la. cant blame them oso. you are saying KL or???

I think all of us must have some liquid money in the saving account.

Don't put all at FD, stock market and other instruments.

You must have at least one month salary in your saving account, who knows, you need the money urgently.

Never borrow from credit card and spend based on your ability.

Don't buy honda city if you are not rich, it can cost up to RM1500 a month minimum.

That was what I thought, but withdrawing will lose your interest.

I should put small FDs..

what do you mean by rich people do not buy Honda City.

They buy Merz? Benz? Ferarri?

SO those buying Honda City is average?

this is not true. you do earn interest, it's just that the interest is very very low and the interest is only paid every 6 mths for saving accounts.

cos they don't wanna proton .... high maintenance

I have current account in maybank (i think it's called premier now), it get about 10+ cents every month for an average balance for 1k+

I have also have a basic saving account in Public Bank (interest credited every 6 mths). Average balance is a few K

Totally agree on the calculation that  ( Owning a Proton Saga + Maintenance Fee < Owning a Honda City ), moreover, this is excluding the maintenance cost for Honda City....
But, a lot of "rich" people will say, they are different class, Honda City provide more comfort, status, stylist, safety, up to trends, foreign car status, good resale value, can get more girls attention etc..... all of these reason are "intangible assets" for those who own it...

whereas, owning a Proton Saga, most people perceive that the owner is low income people, low status, no money to own foreign car, low mentality about car....
haha above just my 2 cents opinions, no meant to "taruk" any one, after all, the decisions is up to individual preference....

but for me, i own proton cars......somemore 2 units......., and people condemn and condemn.....    but i just ignore and ignore 

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Added on November 12, 2009, 6:51 am
Very good example........ .............................  let me do some calculation below
Owner A earning 4k, own a kancil at RM28k, taking 90% loan with 7 years payment at 3.8% interest rate, will be paying monthly installment RM379, after deduct earning remain balance of RM3620

Owner B earning 2k, own a Vios  at RM70k, taking 9-% loan with 7 years payment at 2.0% interest rate, will be paying monthly installment RM855, after deduct earning remain balance of RM1145
Owner A with RM3620 monthly balance, save 50% for 7 years = RM152,000.
Owner B with RM1145 monthly balance, save 50% for 7 years = RM48,000.
Who is smarter? 

Yes, Japanese marques are not for show off - Japanese cars (especially Toyota) is the most easy to maintain.. but i dun think ve much difference with Proton/Perodua in terms of servicing and repairing cost.. Agree that if could not afford the monthly instalment - better dun buy.

European marques are not easy to maintain...my friend's Peu***t, go for repair - the cost about RM15K, and that is a relatively new car..Many ppl bankrupt becos cannot pay HP instalment wor....

Actually, Malaysians are quite lucky - i think, real estate prices are still low...compared to other Asian countries (HK or SG).  Still can enjoy a relatively high quality of life with monthly wages from RM5K - RM10K. Double storey house with a reasonable car....

If the Government's aim to be a developed country by 2020 is achieved, I think the property prices in Klang Valley will continue to increase yoy - in line with the income of the ppl...one day probably we will see RM5,000 per sq ft in KLCC area...maybe in 10 years time...

Windshield for all car is expensive la. Don't tell me Waja's windshield is cheaper than Vios/City cause it is almost the same. Don't forget, Vios/City parts are made in Malaysia. My father's car repair cost is extremely expensive if use the made in Malaysia Proton parts, compare with Japanese parts. It is just a Wira.

As much as I hate UMNO/BN, I think the Government has been making all the right moves recently - inviting Chinese investment, abolishing some of the NEP elements and implementing KPIs, however, not really optimistic that the civil sector can achieve the change in mindset overnight...the operating expenditure for government bodies is really high... I am pretty optimistic at this juncture with Malaysia's future....have a lot of catching up to do....The country should be run by professionals and not politicians...

I think quite a lot of ppl make RM5K per month (for professionals at least) in their 30s..in fact a lot of ppl already achieve the level in their 20s...not really hard to touch RM5K in KL....RM10K is a different story altogether...

Maintenance for City/Vios not that high really.....compared to Waja/Persona...parts are pretty much the same...locally made....

Yes, FDI is going down, deficit is getting higher yoy, but Malaysia has quite a lot of natural sources and no natural disasters unlike some countries....Just need better governance and reverse the brain drain trend....Most of my mates are overseas, Sg, Australia, US and Europe. When are they coming back? Will they come back? Opines that the country need a strong 2 party politics...PR and BN....need to keep the other party on its toes, whoever is ruling...need smarter ppl in the Government...Agree with you that it is quite dire at the moment...the growth rate and low currency value

Can buy 2-storey house with a nice car with RM5K (nett)

Simple calculation

Monthly instalment for a RM450K house in Puchong/PJ (Damansara Jaya, Damansara Utama, Kota Damansara) - RM1,600 (30 year loan)

Car (RM1 - RM1.3K)

So after the loans, still balance RM2.1K - RM2.4K (should be enuf to cover the other expenses if not too spendthrift).

.....Maybe everything also want to showoff gua.... i don have even 10k in my bank account How many ppl have 1 million eventhough is not much ...Its all depends on how you spend your money.... Go restaurant everyday? Go oversea? Go vacation every year? It is very simple if you cannot afford don follow is so simple... Don force yourself to do it if you cannot afford to do so 

My wife will deliver next month but i am not worry as i know i can afford cos i don simply spend. 

I will always tell my son "we are from the poor category" must know how to value money. Imagine if you train up your child to simply spend money what will happened is he will not be able to manage his/her money next time.