One number I found is that raising a child in Malaysia from age 0 to finish Uni level costs between RM393,000 to RM1,368,000.

Bro,

Wife might be frugal on herself

But when it comes to children, hard to find mothers who want to be frugal..everything must be best. 😃

This post has been edited by Cubalagi: Dec 31 2022, 01:23 PM

I agree. That's why now working extra hard. Every money I have, I am investing it.

15k net present value is ALOT if you are living modestly

sending kids to private school is luxury, staying in a 2 mil condo is luxury. eating rm500 per meal for a family of 4 is luxury

that's an E class up all the way to a lamborghini

i have allocated 500k budget for my child. hopefully it is enough

This post has been edited by square2: Dec 31 2022, 02:06 PM

Looking back this 2022 & sharing:
1. Financial year 2022 in recap - personally lost 8.18% yoy but nothing compared to those who lost lives and loved ones in Ukraine-Russia war & continued Covid-19 surge of deaths in CN.

2. 1.5 years into FI/REd: cash flow in VS out is still as planned even with (1.), touch wood - no, not YOUR wood XD

3. Financial year 2023: Still plodding along with plans & tweaking as needed. Hopefully revenge kill by investments done in mid & late 2022 XD

Wishing all fellow forumers & their loved ones, Happy, Healthy and >=15% ROIC New Year

This post has been edited by wongmunkeong: Dec 31 2022, 02:19 PM

RM500 per day is just M40 lifestyle not a luxury. If take RM200 per day for general utility bills, petrol and the likes will have a balance of RM300. 3 main meals per day for a family of 4, is RM100 each meal and its hardly a luxury.

thats quite a T20 statement

I wonder how you arrive at 500rm per day (= 15K rm per month) means a lifestyle of M40. Need to stick with established stats for Malaysia.
The upper limit for M40 is at 11K rm per household, and this is income prior to taxation, savings etc.

the 15K rm per month refered by you I assume is clean spending money where there is no need to pay for taxes or earmark for savings. This definitely belongs to the lifestyle of T20, in fact the middle of T20.

ps: remember, all the B40 to T20 numbers are based on income prior to tax, epf deduction etc, and it is for a household making up of almost at least 2 adults... I just cannot recall the full definition of household as in how many average persons in the household.

This post has been edited by Wedchar2912: Dec 31 2022, 02:52 PM

closer to T05 I think...
cos 11K rm is T20 already

15k just for fnb and utilities very luxury d not include installment for car and house still.

Reason I asked Ramjade whether he was referring to present value?

Or a 15 year future value for him to retire at 45 years old?

This is conservative estimate. Current value assuming inflation stay at zero. Have not include in my options income yet. Nor EPF. Just pure dividend growth investing.

This post has been edited by Ramjade: Dec 31 2022, 03:49 PM

Anyone of you doing part time while on FIRE? If yes what kind of part time jobs?

You cannot assume inflation stay at zero till you retire in 15 years' time!
And as you may note from several write ups, 15k net is pretty much T5 to 10 territory.
Why do you need to have that if you are so damn thrifty?
You are never going spend that any way!

This is the reality now even thought the official classification is T20 . However the spending power has slipped from what used to be T20 lifestyle to M40 lifestyle.

Better be conservative. Cause you don't know how is inflation going to be. More is better. I never assume inflation stays at zero. That's why I put huge buffer there for just in case.

Why? Simple. I want to send my kids overseas and let them start their life there seeing that I don't have the chance. At least I can give them that chance.

A few decades ago when i just started working, at that time a retirement sum of RM1500.00 monthly used to be a dream.
Fast foward to the present, and that sum is now poor man's territory.

But this is not how one should look at the issue and rationalize the numbers.
They should be based on facts (as much as possible) and with as little bias as possible as well.

For example, the T20 classification is most probably based on some stats by KRI, taking with a few years lag. It is still the best fact/data we have and we should stick with it.

inflation does come to play, and should be handled separately. Else, one will never retire because I can always one up you when it comes to inflation scenarios of a future that I can choose to be longer than yours.

btw, there are a few methods to resolve this properly.

most people will just choose part time work or per hour wage jobs (very common in western worlds) to allow non-withdrawal of their retirement funds: ie reinvest their passive income.

the second, more common method is to have more funds than need before retirement, and then diligently segregate the funds into 2 pools. 1 pool is to generate income to spend, the other is to generate income to reinvest.

I m there n living it so i should know. FIRE for quite a number of years. Official classification are like telling us what we should do and be happy about it.