T20 But Still Broke? The Harsh Reality Of Malaysia’s ‘Rich’

In Malaysia, the term T20 is often associated with the “elite” – the top 20% of income earners who are presumed to be financially well-off, living comfortably and enjoying a lifestyle others can only dream of.  You’d probably picture people living it up, sipping on overpriced coffees, buying fancy gadgets, and posting vacation pics from Europe with captions like “healing.” But is this really the case? Can a T20 family still find themselves financially strapped? The answer is yes — and the reason behind it is not as simple as it seems. 

But what is T20 and how can they still be broke?

Let’s break it down. The average household income for T20 is RM19,652. Sounds pretty cushy, right? But hold up — the median income (what most T20 households actually earn) is RM15,867. That’s a pretty broad range to classify under the same category. 

What that tells us is there’s a small group of ultra-high earners pulling the average up, while the majority of T20 households earn a lot less. In other words, most people in T20 aren’t rolling in dough — they’re just statistically rich, not actually loaded. You’re not imagining it: even the so-called “rich” are feeling the pinch in today’s economy. 

And don’t even get us started on the lifestyle inflation that comes with a bigger paycheck. For many, a high income comes with high expectations. There’s pressure to “look the part” — dine at the trendiest spots, own a car that gets stares, live in a condo with a pool you’ll use twice a year.

And so, the spending begins. New car? Check. Latest phone? Sure. Lavish wedding? Don’t even get us started. What used to be luxuries quickly become non-negotiables. But here’s the kicker: your expenses balloon, but your savings? Still flatlining. Before you know it, you’re buried under car loans, mortgages, and credit card bills. Money may be coming in, but it is also going out faster than ever. 

High income ≠ wealth

Income alone isn’t always the best way to define who’s “rich” and who’s not. Just because someone earns RM15,000 a month doesn’t mean they’re rolling in extra cash — it depends on so many factors: how many dependents they’re supporting (humans and pets alike), how much debt they carry, what city they live in, and how high their monthly commitments are. A single person earning RM10K might be more comfortable than someone earning RM18K but supporting a household of six.

So maybe it’s time we rethink how we define “T20.” Because the number in your payslip isn’t the full story and true financial security isn’t just about how much you earn — it’s about what you do with that money. The truly secure ones are playing the long game — saving, investing, and budgeting. But many “T20”s are too caught up living in the now. And let’s be real, can you blame them? The cost of living is rising. Inflation’s doing its thing. Kids need tuition, parents need medical help , and somewhere in there, you also want a life.

So… what’s the move?

If you’re earning a T20-level income but still feel like you’re constantly one bill away from a breakdown, you’re not alone. Here’s the thing: being in the top 20% doesn’t automatically mean financial freedom — it just means your payslip is bigger than most. What that money has to do, though? That’s a whole other story.

There’s daycare. Elder care. Mortgage payments. A car loan. Maybe two. Groceries for four. Unexpected vet bills for the cat (who is honestly, probably faking a medical condition for attention). School fees. Insurance. The occasional takeout dinner. Suddenly, that five-digit income has whittled down to nothing.

That’s why defining “T20” by salary alone is a little bit out of touch. It completely ignores what that income needs to stretch across — and for who. Two people with similar earnings can live completely different financial realities depending on their responsibilities and lifestyle. So maybe it’s time we stop treating income like the ultimate yardstick of wealth.

The truth is, the ones who are truly secure aren’t just earning well — they’re managing it well. They track. They plan. They invest consistently, even if it’s not flashy. They say no to unnecessary upgrades even when they can say yes.

So instead of chasing numbers, chase habits. Because T20 on paper is one thing. T20 with peace of mind, savings, and long-term stability? That’s the real win.