Income Tax

One thing need to remember is to include income tax on our financial plan. In Malaysia, all individual who has source of income need to pay tax if after calculation its income reach the taxable income. Source of income includes income from business, salaries, dividend from shared, interest or discount, rent, royalties etc. The rate of tax depend on amount of total taxable income.

Today is the last day to submit BE form to Inland Revenue Board (LHDN). I plan to submit it on early morning, but at 8.30 received call from collegue to open office door. Today my office is declare as public holiday (replacement) and nobody come to office except who need to work overtime. They called me because I stay quite near to the office and I also have the office key. I stayed at the office until 10.oo am. After that I go back to take document to bring to Inland Revenue. Arrived at Inland Revenue around 10.30 and take pin number at the counter. This pin number is need to make e-filing to submit BE form online. I decide to use PC the Inland Revenue office because this is the first time I use it and also there are officer to help if there is any difficulties and also this is the last day to submit. I don't want any problem in the future. I am waiting until 12.00 noon to use the PC. I completed to fill in the form at 12.15.

I need to pay tax RM113.69 after tax rebate. I got tax rebate, zakat RM14.10 and buy new PC RM500.00. One thing I forgot to fill up in the form is tax relief of buying books. I have keep a total of RM186.00 resit that I buy books last year. I miss to include this one because today is too rush for me to do a lot of thing. I the future I will not waiting until last minute to submit the tax form.

After Inland Revenue Department, I go to the RHB bank seksyen 16 to make 2nd OD and to cash cheque to buy freezer and to buy ASB for wife. I also bank in RM550 from salary to OD. Last time already RM3000 already make online transfer. I write cheque RM4100 which is RM2600 I put on wife's ASB and RM1500 I keep to byy freezer later. For OD making, the officer I have met before is on leave, and I meet another officer. I request to make different current account for this OD than OD before but that officer inform can not. She inform for the same branch only one current account need for more than one OD. After that I called my seminar coordinator and he inform can make many current account. After discuss with bank officer, she ask her collegue at another branch, and I decide to go to that branch to make OD with different current account. I am lucky because the other branch is not far from this branch. I go there and submit the form. Waiting for approval, maybe next week. Around 3.15 pm I completed all this job.

I go back and took lunch. At 4.30 pm my wife and I go to electric shop, and we buy freezer RM1100 and tv RM400. Total RM15oo which is budget for freezer. My tv just broke down, thats why I buy new one.

KLIBF - Kuala Lumpur International Book Fair

Yesterday my family and I go to KLIBF to take a look of book and magazine. My wife buy some magazine and make subcription of MIDI for one year. My self buy 3 books (Blogger Blog Blogging, The True Power of Water and Kunci Bebas Hutang), my step child buy a comic and my niece buy a novel. We can improve our knowledge through reding activity and may be more chance to increase our income.

Goal of Financial Planning

To make our financial planning, we need to have our goal or target to achieve it. The common target is as below,

- to buy a new house

- to buy new car

- married

- education for our children

- vacation

- retired

- medical expense

- etc.

Priority of the goal is depend on each person situation and we need to make plan base on our priority.

There are three step to make financial planning,

1) Short term

What we are able to do in short term period, in one week or several month, but not ore than one year like to buy dress or saving for vacation.

2) Midle term

What we can do in the period from 1 to 5 years like to buy new car.

3) Long term

Is the longer period, from 5 years and above like to buy new house, saving for child education, etc.

Second Appointment

My second appontment had with CFP had done on 19th April. Appointment time is on 6.00 pm, but as 1st appontment it had delayed until 7.10 pm due to person before me not finish yet his discussion with CFP. My meeting with CFP is finish around 8.00 pm (about 50 minutes). This time I go together with my wife.

During this appontment, there are some updates of data given before. Credit card debt amount was increase from RM6372 to RM7922 (increase RM1550). No more monthly payment of ASB loan, ASB loan already terminate. Public Mutual unit trust already sold. My target to have new car also changed. Last time I plan to have Toyota Harrier, but I changed it to Toyota Wish.

I decide to change to this car is because I need to change to cheaper car and my life also not suit with me. What I mean by not suit with me is I stayed in low cost house and all neighbour also in low cost house and all neighbour is not use the expensive car. Even I choose Toyota Wish also still expensive compare with neighbour, the gap of price is reducing. Recon car of Toyota Harrier is about RM190K to RM230K, but Toyota Wish recon is about RM110K to RM135K for model '03 or '04. The other reason is in my work area there are seldom people only drive expensive car and they are almost manager level. Toyota Wish also still categorized as expensive car.

After restructure of my asset, debt and income, action to be taken are,

1. Must make CMS for balance budget

2. Salary(after deduct BRakyat PL)+other(RO machine) bank in to OD1 account on 26 April

3. Buy Toyota Wish(Recon) and take Max loan (RM125K), 9 yrs and 2.5% int.

4. Buy Myvi for wife and Trade in Satria (Max repayment is RM450) - Cancell

5. Buy Freezer RM15oo, take cash from OD1

6. Pay House loan and computer EZ payment 3 days b4 due date (use cheque)

7. Take cash RM2K from OD1 on 26/4 for daily expence until 25/5 (one month)

8. Take cash RM2.6K form OD1 to put in wife's ASB on 29/4

9. Issue cheque to put in OD1 (RM11K from citibank and RM9K from OCBC) - Done

10. After citibank and OCBC cheque clear, withdraw RM20K and buy ASB(certificate form) and make OD2.

Item no.2 I cancell after discuss with my wife due to we still have old car and we need to make more saving. May be later after all run in smooth condition I will proceed with this action. Our main target is to have better house around RM300K.

Improve Knowledge

Update of my project

Last Wednesday (28th March), my overdraft (OD) already approved. During lunch time I went to the bank to sign OD contract agreement. Total of RM60.00 were paid which is RM50.00 for OD processing and RM10.00 to open current account. I've got bank card on that day. Bank officer mention that cheque book I can take if after four working day and money of OD will transfer to my current account after 2 weeks. I get 95% from total amount of ASB certificate. I get OD RM32,300 from RM34,000.

Today I have three plan to do. Submit EPF withdrawal form to reduce housing loan, Refinance housing loan from HSBC and to apply Charge card from Alrajhi bank. What I have done is only with EPF office. There are long time waiting there due to many people are queue. I have no time to go to the other place. Why I want to apply EPF withdrawal and then apply to refinance my housing loan? Because I want to take my EPF ad to use it to make 2nd OD. I need to apply EPF 1st and then submit to current bank housing loan (HLB bank). After get cheque from EPF I give it to HLB and then apply refinance housing loan from HSBC bank. After refinance I can get the extra money because from EPF money its already reduce current amount of housing loan. If I apply refinance 1st and then apply to withdraw EPF to reduce loan, I get nothing with that because EPF cheque is named to the bank.

Improved knowledge - To get more money online

Yesterday, weekend (1st April), I attend "Trade Forex Through Internet" course conducted by "Forex Information Technology" and "Concord Consultant (M) Sdn Bhd". This is the second course I attend about trading forex online. First course on last year, October (basic) and this second course is advance course.

I learned new tips to get money online through forex. I also learned the factors that I loose during trading Forex. There are nobody perfect on Forex trading. There are step that we can become millionaire in just 200 days with capital only USD100. Its possible and also impossible. It depend on our skill and experience. Now I am making plan to become millionaire through Forex.