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Ho Tze May takes home a decent monthly income and does not overspend on entertainment and shopping. However, she is barely able to save any money at the end of every month.
Commitments like her car and study loan payments, as well as food and a monthly contribution to her parents for household bills, take up the bulk of her salary. This leaves her with very little left over for savings.
"The salary is just sufficient to cover whatever I need to pay off and use every month, there isn't much left for me to pamper myself," says the 24-year-old account executive who lives with her parents.
"I'd usually just go for movies and a slightly fancy dinner, a drink at coffee shops with friends and clubbing, occasionally."
Like Tze May, many young adults are finding that drawing a paycheck does not equal to having more money in their bank account. Sure, they have more pocket money than when they were students, and they could afford to do and buy more things. But at the end of the month, many still find that they do not have much money left to put aside.
"It's harder (to save), especially after I bought a car. The expenses for repairs and petrol are enough to use up all my savings. But I don't have a choice about buying a car because I need it," says Tze May.
Car loans, student loans and credit card bills take chunks out of most young working adults' salary. By the end of the month, many are broke and waiting on their next paycheck.
Many live with their parents or relatives until they leave town or get married, as it helps them save on rent, but this doesn't necessarily mean they end up saving more.
Accountant Ahmad Syahrul Hazwan Abd Razak hails from Johor and works in Kuala Lumpur. He lives with his aunt in Subang, Selangor, to save cost on renting a room or house.
Since he started work 11 months ago, Hazwan has managed to put at least RM200 (S$84) a month into his savings account, and any extra cash he has leftover at the end of the month.
"I do have friends with difficulties managing their salaries and spending," says Hazwan, who says that some of his friends earn a lot, but don't know how to manage their money.
"On pay day all we see is this nice figure in our bank account and all we want to do is spend. Maybe it's part of being young - you want to buy stuff you couldn't buy during your university days.
"But I must admit I'm a bit lucky because I do not have to worry about servicing my student loan or paying rent. Maybe that's why I can still put some amount into savings. At the same time I'm trying my very best not to be tempted to shop that much, especially on clothing items," adds Hazwan.
http://edvantage.com.sg/edvantage/news/news/542984/Fresh_grad_s_money_woes.html
