The late renowned investor, Charlie Munger, once said that saving your first RM100,000 is the most difficult. But, this should not discourage people to work hard to hit this milestone. Once you get past the RM100,000 mark, you will have a strong base to start earning compound interest and find it easier to grow your wealth.
For many, saving your first RM100,000 will require a few years’ time. Starting early will give you the advantage of having a longer period to save and buffer for if you make financial mistakes along the way.
Of course, the truth is many Malaysians are facing difficulties in saving as they need to pay bills and debts, with 55% of Malaysians having less than RM10,000 in savings to draw upon during an emergency event.
As a young worker who just started out, it’s likely that you may be earning a lower entry-level salary as well. This raises the question of how long it would take an average young Malaysian worker to save RM100,000.
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How Many Years Does It Take To Save RM100,000?
According to data from the Department of Statistics Malaysia (DOSM) as of March 2024, the average salaries of young workers range from RM1,500 to RM2,500.
As expected, the average salaries of young workers are the lowest compared to other age groups. The salaries are inclusive of all types of remuneration including bonus, commission and allowances.
| Age Group | Average Salary |
| <20 | RM1,500 |
| 20 – 24 | RM1,764 |
| 25 – 29 | RM2,500 |
| 30 – 34 | RM3,045 |
| 35 – 39 | RM3,500 |
| 40 – 44 | RM3,764 |
| 45 – 49 | RM3,818 |
| 50 – 54 | RM3,645 |
| 55 – 59 | RM3,364 |
| 60 – 64 | RM3,000 |
| >65 | RM2,745 |
Source: Department of Statistics Malaysia
Assuming that a young worker aged 25 earns an average monthly salary of RM2,500 (or annual salary of RM30,000) and saves around 25% of his salary every month, he will take about 13 years to reach RM100,000 in savings.
| Age | Annual Salary | Annual Savings | Total Savings |
| 25 | RM30,000 | RM7,500 | RM7,500 |
| 26 | RM30,000 | RM7,500 | RM15,000 |
| 27 | RM30,000 | RM7,500 | RM22,500 |
| 28 | RM30,000 | RM7,500 | RM30,000 |
| 29 | RM30,000 | RM7,500 | RM37,500 |
| 30 | RM30,000 | RM7,500 | RM45,000 |
| 31 | RM30,000 | RM7,500 | RM52,500 |
| 32 | RM30,000 | RM7,500 | RM60,000 |
| 33 | RM30,000 | RM7,500 | RM67,500 |
| 34 | RM30,000 | RM7,500 | RM75,000 |
| 35 | RM30,000 | RM7,500 | RM82,500 |
| 36 | RM30,000 | RM7,500 | RM90,000 |
| 37 | RM30,000 | RM7,500 | RM97,500 |
| 38 | RM30,000 | RM7,500 | RM105,000 |
Saving More Of Your Salary Each Month Will Help Your Reach Your RM100,000 Goal Faster
As a young working-class individual in Malaysia, he can expect his salary to go up as he gain more experience and deliver better results. On average, Malaysian workers can expect to receive a 5% annual salary increment.
If he does not inflate his lifestyle too much, and continue saving 25% of his salaries, he will accumulate RM100,000 by the time he turns 35 years old – taking him 10 years instead.
| Age | Annual Salary + Increments | Annual Savings | Total Savings |
| 25 | RM30,000 | RM7,500 | RM7,500 |
| 26 | RM31,500 | RM7,875 | RM15,375 |
| 27 | RM33,075 | RM8,268 | RM23,643 |
| 28 | RM34,728 | RM8,682 | RM32,325 |
| 29 | RM36,464 | RM9,116 | RM41,441 |
| 30 | RM38,287 | RM9,571 | RM51,012 |
| 31 | RM40,201 | RM10,050 | RM61,062 |
| 32 | RM42,211 | RM10,552 | RM71,614 |
| 33 | RM44,321 | RM11,080 | RM82,694 |
| 34 | RM46,537 | RM11,634 | RM94,328 |
| 35 | RM48,863 | RM12,215 | RM106,543 |
While you need to diligently put aside a big chunk of your monthly salary, 25% in our example, for a relatively long time, 10 years in the example, it does show that you can reach RM100,000 in savings.
Invest To Grow Your Savings Faster
But, young workers can reach RM100,000 even more quickly. If they invest their savings, they can reach the milestone by age 33 – assuming they earn a return of 7% p.a.
| Age | Annual Salary + Increments | Annual Savings | Savings After Earning 7% Returns p.a. |
| 25 | RM30,000 | RM7,500 | RM8,025 |
| 26 | RM31,500 | RM7,875 | RM17,013 |
| 27 | RM33,075 | RM8,268 | RM27,050 |
| 28 | RM34,728 | RM8,682 | RM38,233 |
| 29 | RM36,464 | RM9,116 | RM50,663 |
| 30 | RM38,287 | RM9,571 | RM64,450 |
| 31 | RM40,201 | RM10,050 | RM79,715 |
| 32 | RM42,211 | RM10,552 | RM96,585 |
| 33 | RM44,321 | RM11,080 | RM115,201 |
As a young worker, you are still building your experience and working your way up to earn a higher salary. However, you can increase your savings by investing such as placing your money in fixed deposits or the stock market.
For example, an individual at the age of 25 places his annual savings of RM7,500 in the stock market, which delivers around 7% interest p.a. They will hit the milestone RM100,000 in eight years instead, by age 33.
Saving your first RM100,000 is no easy feat as it requires discipline and commitment to invest throughout several years. Other factors like your financial situation can also affect how long it would take a person to save RM100,000. For example, an individual who lives in Kuala Lumpur at his parents’ home with less financial commitments is likely able to save more and reach RM100,000 faster.
Meanwhile, a young worker who moves from another state to the city and rents a room by himself probably has more bills to pay, resulting in him saving less and taking longer to accumulate RM100,000.
Read Also: How Much Do Malaysians Have In EPF Savings?
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