Ways To Slash Tax

It is this time of the year again. Looking through the piles of receipts and bills to search for anything that can help you reduce your tax amount. Gathering all your income statements to make sure you do not wrongly declared. So pious, so to speak.

So do you know what is your Income Tax relief and rebates like? For a start, you can always click HERE for the full details. Then there is the TAX REBATE for extras. The dateline is 30th April 2008 for employees and 30th June 2008 for individuals with business. Full details HERE.

Simplesteps:

1. Separate tax return for both spouses.
2. Get ready your insurance statements. (Life/Education/Medical/Annuities)
3. Subscription receipts for magazine or books.
4. SOHO expenses (e.g. rental, utilities etc)
5. Computer hardware & software purchases receipts.
6. 26-ways-to-slash-taxes

Some of the ways quoted guarantees to work. So do your duty as a citizen. Happy taxing.

Quick! Act now. 6% interest rate.

Want to learn how to convert your credit card debts to a lower interest rate plan?

1. NO documents required.
2. NO processing fees.
3. NO transfer of banks or accounts.
4. NO hassle.
5. QUICK approval.
6. REFRESH your credit statements.
7. LOWER your monthly payments.
8. For all EXISTING active credit cards.

Call me for a free consultation. My office is at Sri Petaling, Kuala Lumpur.

You are paying 18% interest rate!

It is quite horrific to learn that many consumers I come across does not exactly know how much they are paying for their purchases on credit each time they swipe their card. Is it pure IGNORANT or MIS-INFORMED? Either way, you are screwed.

In comparison:
Housing Loan - 8%
Car Loan - 5%
Personal Loan - 8% to 15%
Ah Loan - 25%+++++

YES! 18% per year on your outstanding balance or more accurately 1.5% per month for any outstanding balance plus (+) late payment charges. That is somewhere in-between of personal loan and Ah Loan.

Example:
You buy a brand new LCD display for RM3000 and some groceries at RM400. So at the end of that month, you card is credited RM3400. You are supposed to pay RM3400. But the financial system allows you to pay a minimum of 5% of that amount of RM50 whichever is higher. The temptation for most people is that they will pay the minimum. Let us say, RM3400 x 5% = RM170. So your starting balance is RM3400 - RM170 = RM3230. On the following month, you swipe another RM250 for groceries. And at the end of the month, you closing balance is RM3230 x 1.5% + RM250 = RM3481.00. The difference between the first month and second month is the balance got higher despite you paying promptly. In no time, you would have gotten into a lot of card debts and it is quite hard to get out of it.

e.g.
RM3000
+RM 400
=RM3400
- 5%
=RM3230
+ 1.5%
+RM 250
=RM3481

Many other would easily make out this math and know their self-discipline. But the discounted their bad month when some emergency occurs and the consistent lure of pure lust of lifestyle upgrading.

Simplesteps.

The only way to get out of it is to:
1) Buy what you can afford.
2) Pay all that you have spend in that month. If you know you cant pay, then don’t spend.
3) Keep your card at home in a safe place.
4) Restructure your card debt to lower interest rate. (Contact me)
5) Pay on time. Avoid incurring late payment charges.
6) Plan your finances.
7) Increase your income.

Now, it is your call.

Simple Man, Gigantic Dream = S350L

To my friend and mentor, to have a dream is like to breath. When we breath, the oxygen will carry the blood cells to every departments of our body so that each and every organ will respond to its master. The next thing he makes me remember is that a dream remains only a dream if we don’t take the necessary actions to achieve it.

My friend (at 33) is also a perfect example of a successful entrepreneur who rose from rags to riches. Almost seeing it all after finishing high-school he explained to me that in life, everyone will go their own path and each path has its own test of wits. The thing is never let your emotions get to you. It is very hard he says, to control your emotions when the going gets tough but at the end of the day the winner is always the one that can handle their emotions perfectly.

Having a dream is not just as simple as setting it but living by it. It involves going through the hardship of planning, execution, and re-alignment. Go through all the details of your plan, learn it by hard, know it at your finger tips. I can attest that many successful man shares the same thoughts too. Another great story which I will be writing soon is Mr. Li Ka Shing (Worlds Top 11riches).

To go through every details in the process is knowing how much you want it realized. Every thing has a starting point. Every big thing is made out of small actions. To summed up what he is trying to convey I have put it in these words:

“Take the first step of your journey now and you will reach your destination sooner.”

Set your dreams today. What is stopping you? A dream can be small or can be big. There is no limitation to it. According to the secrets which i have seen it so many times, and practicing it I tend to believe that setting a dream is important.

I will continue my friend’s story from time to time as I continue to seek the essence of his success.

Staying Alert is Staying Alive

I recently come across an article in a local mainstream media with this BIG title. Staying Alert is Staying Alive. Like the words are trying to describe itself although that article was meant for self defense against street criminals…but is that less applicable to other things in life?

Staying alert on your:

• Income
• Expenses & Purchases
• Savings & Investment
• Financial freedom plan

Nothing much to describe actually because it sounds pretty straight forward. You do the imagination.

Save $10, Earn $3.50?

• Hard work = high return?
• Long hours = high recognition?

Is that a simple equation? If yes, then our Malaysian Child Prodigy would not have got it wrong. That aside, we would normally think that getting a stable job with a stable income and everything would be stable. This is what normally be fed to us when we were growing by our respectful parents. I am not blaming them for this because what they have thought us is indeed true but only at the wrong century.

I have a friend who is a graduate from a reputable overseas university. He got back to KL and after a couple of hops he joined a giant listed organization. He holds a high profile job reporting to the CEO directly, he travels overseas officially, he holds meetings with high profile heads of organization as well as govt reps etc. He spends endless hours daily making sure all deals runs well. It was going into his 6th year and he suddenly realized that everything was increasing tremendously except his salary. How pathetic! I guess this is just a normal scenario many of you would have seen. My friend quit his job for greener pasture.

So how does the equation works? Hard work equals high return? Long hours equals higher recognition? To summarize, work smart and hard.

The save $10 earn $3.5 has already been in our economic system for so long but kept away from ordinary people. Some of your friends and relatives may know it but didn’t reveal it. You may have missed it if you have been too busy with your job.

You know where to find me.

How to restructure repayments?

Ok, earlier I have mentioned that some banks offer credit card owners term loans to offset your mounting credit card debts. That is provided you still have a strong flow of regular income, and a valid reason. Strong flow of regular income meaning a regular paying job or some regular income from your business. This you have prove. Be prepared to loose all your benefits like loyalty points and all when you convert to term loan. You need to obviously prepare all the necessary documentation like your payslip, bank statement, post-dated checks, and some post money for agreement. With the necessary documents, it may take you about 2~3 weeks to process.

Basically, what you are doing is stopping the high interest rates charge by the card and servicing your debt through fixed monthly payments with lower fixed interest rates. You will be saving around 10%~12% per annum.

The other way is to use your existing card for a transfer exercise. Not a bank-to-bank but card-within. This way, you can skip all the necessary documentation and convert it straight away. Also save up to 10%~12% per annum with easier steps. Fully legal and no-nonsense.

RM100,000 credit card debt!?!?

Ok, do not ask me how he accumulated huge amount of debt. Do not be too surprised as the total credit card turnover in Malaysia alone can reach to hundreds of million in RM. So what is RM100,000? Chicken feet…

I helped a friend recently with his ever lasting teething problem. Imagine, RM100,000 in your credit card statement, how much do you need to pay monthly? Assuming you settle 5% minimum payment monthly, that is a whopping RM5000 and you will be doing that for atleast 88months with decreasing amount. Kaput…

I took him to restructure this debt and it came out paying RM3278 monthly for 36 months. Cool aint? Yeah, I physically destroyed his card right after the exercise. Cool aint?

Structured Credit Card Repayments

Why do you need to restructure your credit card debts?

Most of you if not all would have already know that bank charges 1.5% monthly for outstanding debts. And 5% late payment charges if you failed to make a minimum payment. That makes up to around 18% bank charges per annum. Much lower than your local Ah Long Sdn Bhd. But still significant to cause you financial breakdown if not manage properly.

To restructure your repayments, you are:

1. Reducing interest charges from 38% to 18%.
2. Scheduling fix payment for easier monthly planning.
3. Improving your credit ratings.
4. Clearing your payment terms with a maximum of 36months compared to 88months.
5. No unwanted calls from banks and its agents.

So far my experience in handling debt restructuring is off mixture of experience. Different banks operates differently and most of them comes with deterrent procedures. So pathetic.

I can send you more info if you need. Just send me an sms or call 0 1 2 - 6 0 6 1 8 1 1

Inflation goes horizontal.

I thought inflation means prices going upwards? Yes, you are certainly right but the truth is Inflation goes horizontal. See how my header banner of KLscape looks inflated, wide, and short. Whenever there is an inflation, prices goes up, it is widespread, and everyone’s budget remains short.

How much does a bowl of kuey-teow soup cost now? Its RM3.80 in a local coffee shop (aka restaurant). I remembered its only around RM3.30 beginning of 2008. That is RM0.50 increase or  around 15% dearer. I tend to use food as an example as I think many people could relate to easily. In average, that could be lower but the situation is volatile as the issue of recession in US is looming, crude oil price is at a record high, etc.

So does your income improves by 15% just to cushion off this very little increase? If no, you are in trouble. If yes, you are okay but not getting better.

Keep this blog in your bookmark and frequent here to share your thoughts and learn some $imple$teps.