Home » Money Management » Will RM2,500 Suffice for Fresh Graduates in Kuching?

Will RM2,500 Suffice for Fresh Graduates in Kuching?

A graduation mortarboard on a wooden bench with pink flower petal.

Reading from The Star Online earlier this week on whether RM2,500 will suffice for fresh graduates, I think it is interesting to see the sample of a fresh graduate budget.

Perhaps this will also be able to provide a guideline for the employer when they set the salary for fresh graduates in Kuching.

Will RM2,500 salary for fresh graduates in Kuching suffice?

This is a sample of a monthly budget for a fresh graduate in Kuching with a monthly salary of RM2,500:

  • EPF contributions (11%): RM325
  • Daily pocket money and food allowances (RM20 x 30days): RM600
  • Car loan instalment (Myvi @ 9 years): RM450
  • Accommodation (inclusive of water and electricity): RM300
  • Petrol or Fuel: RM250
  • Phone and Internet Connection: RM100
  • Study loan (PTPTN): RM150
  • Medical insurance: RM100
  • Clothing, body care, hair care and other misc: RM125
  • Savings: RM100
  • Total: RM2500
  • (Note: the figure is based on my observation and some assumptions)

The above has not added in other spendings such as movies, special outings, dining, cool gadgets, emergency needs, medication and others.

For some, RM2,500 seems to be quite a lot but after taking care of the basic needs, there is really not much left.

Some adjustment might be needed

Perhaps fresh graduates can choose to stay with parents or family members to save on accommodation. Also, have to adjust on food allowance for more cash to be spent on others.

It seems like a big portion of the monthly salary spend on transportation (RM400 + RM250 = RM650). Other alternatives to reduce transportation costs would be:

  • use motorbike
  • choose carpool
  • share a family car
  • getting a smaller car with lower monthly instalment
  • getting a second-hand car

At the time of writing, in Kuching, we can’t rely on public transport. So the idea of using public transportation to go around is not a suitable solution for fresh graduates.

The budget above still looks acceptable because there is a saving of RM100 per month and there is medical insurance coverage. I believe most of the fresh graduates had neglected the insurance coverage in their budgeting.

With some adjustments and temporarily sacrifice, it looks like RM2,500 seems to be sufficient for fresh graduates in Kuching.

For fresh graduates in bigger cities such as KL, Penang, JB and other major towns where the cost of living (room rental, toll charges, food allowances) is higher, it is rather hard to survive with a monthly salary of RM2,500.

Unless they are willing to make more sacrifices and adjustments.

Final thoughts

As time goes by, let’s hope that the salary for fresh graduates in Kuching will be further improved.

Perhaps, fresh graduates should also look into a more creative way to earn side incomes instead of relying on the monthly payments? Or, perhaps venture into entrepreneurship?

Lastly, do you think that RM2,500 suffice for fresh graduates in Kuching? If not, what would you suggest as an acceptable salary for fresh graduates in Kuching?

photo credit: Shawn | Shiyang Huang via photopin cc

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