T20, M40, B40 – Which One Are You?

Do you know where you stand financially in Malaysia?

Today, there are three different income groups categorized by the Department of Statistics’ (DOSM) Household Income and Basic Amenities (HIS/BA) survey of 2016 – T20, M40 and B40. As of now, DOSM is currently carrying out their 2019 survey nationwide. According to them, every year the level of income for every group increases which is also a sign of Malaysia’s economic growth.

Before we delve into the categories, let’s introduce certain concepts and terms (just so you don’t get too confused).

But what is T20, M40 and B40?

T20 stands for Top 20 and they are the class of citizens who have a median household income of at least RM13,148. M40 is Middle 40 whose median household are at least RM 6,725 while B40, which stands for Bottom 40, earns RM3,000. DOSM’s report also indicated that the median household income for T20, M40 and B40 showed a compound annual growth rate of (CAGR) of more than 6%.

DOSM even included the income level for each state which showed fascinating results.

So, what does this mean for Malaysia?

The national standard in 2016 is that 65.7% of the 6.9 million Malaysian households earn below RM7,000 each month. As you can see, apart from Kuala Lumpur, Selangor and Putrajaya, other remaining states median income level did not exceed the median income level for the M40 group. These states are still struggling to stay on track to achieve similar income levels.

And what does this mean for YOU?

Now that you are aware of what the income groups are, figure out where YOU stand among T20, M40 and B40.

If you’re unsatisfied with your position and anxious about what the future may hold for you, take the initiative to grow your wealth! With SyncWealth, we can help determine where you stand with our WealthGPS feature – just key in each of your financial goals, what your current income is, and SyncWealth will measure your progress and show you where you need to be to achieve your goals. 

For extra measure, consider another source of income as well. Use your skills to increase your household income by freelancing, tutoring or operating a small side business. Remember to consider the amount of time you are willing to commit, the risks you are willing to take, and the skills that will allow you to make more money.

Here at SyncWealth, we also help you manage your finances better with our tips and suggestions. Read more on personal wealth management and the importance of financial literacy, financial planning, cash flow management and investments. Financial clarity is vital. If you remain clueless of your financial standing, you won’t be able to plan and navigate your financial journey smoothly. Always be updated and knowledgeable before making any money decisions, cut down on your expenses so you can be cash flow positive and invest with that extra cash in hand. 

Intimidated? No worries! To help navigating through this maze to reach your financial goals, talk to one of our friendly financial advisers and don’t forget to subscribe to this blog and our Facebook and Instagram page for all the latest articles on financial wealth planning and management.

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