Dear BCMC,

I am a single mom too for the last 7 years so I know where you are coming from. Five years ago I earned about RM2500 per month and it was tough taking care of my kid as I had no family support nearby. I just wanted to share what worked for me.

I moved near to where I worked so that I saved on petrol. I could walk to my office so my petrol was less than RM100 per month. I did not have broadband but currently I am using the cheapest package from streamyx (although currently I earn more than RM10K per month). As for babysitter, you should get one nearer to home. That will not only save you petrol but is also more convenient. 2 years ago I paid about RM450 per month for my babysitter and she lived in the floor above my apartment. Nowadays you can still get a good babysitter for RM500 and if your child is around 3, I suggest you send her to a good daycare so that he/she can learn and socialise more. Daycare charges about RM300 pm. If you need after office hour care, I suggest you find a kind neighbour to do it for an hourly rate of about RM8. I have a very good relationship with some of my neighbours and during emergencies they are willing to help out for free (just buy or bake a simple cake for them as a token of your gratitude or volunteer to babysit their kids in return)

As for food, I have a budget of RM200 a month. So what I do is I go to the wet market during the weekends and prepare all my meals in advance to save time. Sandwiches are healthy and cheap even for your kid. Invest in a slow cooker. I put in a whole chicken with potatoes and carrots into a slow cooker and it is enough for two days and costs less than RM10. You can even cook spaghetti sauce, soups and roasts in a slow cooker...all for less than RM5 per day. Buy cheaper cuts of meat...when you cook it in a slow cooker, it will be just as tender as more pricier cuts. Of course now that I have more disposable income I buy better quality produce to cook (like organic fruits, veges and chicken). Even so my grocery bill is still less than RM500 per month.

As for your child's insurance, is it a education package or a life insurance package? You should have life (term) and basic hospitalisation for yourself and education and basic hospitalisation for your child. Don't buy life for him/her as it is not necessary.


Regards

Hi zzzstream,

Just wondering is the personal loan an interest free one (i.e. from friends) or is it one of those personal loans from banks?

If it is a bank personal loan I would suggest putting the 500 there until the debt is cleared. Another thing is: you did not break down your essential living expenses like food and accommodation. Is that included in the family contribution? Just want to know to get a clearer picture as the amount above only comes up to RM4060K

What I would do:

Rent a cheaper place near to the office - A flat for 450-500 would be good and you can scrap toll payments and maybe shave off RM100 from your petrol costs (Savings of RM600). Don't buy now. Save for the house. Also ask your brother to contribute...even a small amount is good. Do not encourage outpatient financial care.
Either cut off the 3G or the Streamyx. You don't need both. (Save RM150)
Electricity bills are ginormous. My electricity bill is only RM30-RM40 per month and I have a daughter. (Save RM120). I use energy saving bulbs throughout the house and switch off all the mains for unused appliance.
Etiqa - What kind of insurance is this? Is it life, hospitalisation or investment? You need to assess your current situation and determine what kind of insurance you require during the current stage of your life.
Meals - you can reduce it to RM100 per week for two. Just cook. A large roast chicken is enough for 4 meals with your girlfriend (think sandwiches, soups and stews (Save RM200)
Total Saved : approximately RM1000. Save this amount every month for the next five years and you can put a nice downpayment on a moderately priced house.

Wow you are really frugal...I thought I was frugal! Currently managed to reduce all groceries and household items to below RM400. Before my budget was RM500 for the family but I think it is too high.

As for retirement, I don't intend to 'retire'. I only work about 4-5 hours a day at the moment and even those hours are flexible. So I guess I am in my definition of "retirement". Even now, sometimes I feel bored, so I think total retirement would drive me nuts!

My RM400 budget includes all items use at home like cleaning materials as well as my daughter's stationeries. Is it me or do kids eat erasers?
I cook a lot too but I don't do major freezing, just enough for a week. Every month I take out RM400 from my account and put it in an envelope and only use that for the month! It helps me keep my spending in check!

Speaking of XL prawns, I bought a box (which had at least 2 dozen prawns) from Jusco for only 19.90! That was 6 meals!

Michael J : Yeap...when we have a lot of work we complain...when we have no work also we complain! BTW are you retired now?

I think the Annual Income should be "Average Annual Income during The Working Lifetime" If not, I am underachieving despite saving close to 40% of my income.