Although this method works with legend, it seems not to be working well with figlegend when there are multiple subplots and we want a single overall legend. figlegend still get cropped when savefig. I just pasted my temporary solution below in case someone faces such a case.
import matplotlib.pyplot as plt
para = {
    ## this parameter will indicate the position of
    ## subplot within figure, but will not be shown
    ## if using bbox_inches='tight' when saving
    'figure.subplot.top': 0.5
}
#plt.rcParams.update(para)
fig = plt.figure()
ax=fig.add_subplot(221)
## only needed when what to manually control
## subplot ration
#ax.set_position([0.1,0.6,0.5, 0.4])
ax.plot([1,1,1])
ax=fig.add_subplot(222)
#ax.set_position([0.7,0.6,0.5, 0.4])
ax.plot([2,2,2])
ax=fig.add_subplot(223)
#ax.set_position([0.1,0.1,0.5, 0.4])
ax.plot([3,3,3])
ax=fig.add_subplot(224)
#ax.set_position([0.7,0.1,0.5, 0.4])
p1, = ax.plot([4,4,4])
p2, = ax.plot([2,3,2])
## figlegend does not work fine with tight bbox
## the legend always get cropped by this option
## even add bbox extra will not help
## had to use legend, and manually adjust it to
## arbitary position such as (0.3, 2.5)
## http://matplotlib.org/users/tight_layout_guide.html
## according to this link, tight layout is only
## an experimental feature, might not support figlegend
#lgd = plt.figlend(
lgd = plt.legend(
    [p1,p2],
    ['a', 'b'],
    ## by default, legend anchor to axis, but can
    ## also be anchored to arbitary position
    ## positions within [1,1] would be within the figure
    ## all numbers are ratio by default
    bbox_to_anchor=(-0.1, 2.5),
    ## loc indicates the position within the figure
    ## it is defined consistent to the same Matlab function 
    loc='center',
    ncol=2
    #mode="expand",
    #borderaxespad=0.
    )
#plt.show()
plt.savefig('temp.png', bbox_inches='tight')#, bbox_extra_artist=[lgd])