Malaysia Financial Blogger | Financial Freedom Ideas | imDavidLee.Com

Is Internet Income Taxable?

Many people still do not know whether Internet income is taxable or not? There’re a lot of full-time blogger have been paying income tax. While some other bloggers may argue that the Internet income is not taxable in Malaysia.

By law, any and all income made by a Malaysian within Malaysia is taxable. And, every income is taxable, either local or foreign.

If you’re having a full time job then you will realize that there’s almost no way to run away from tax. In Malaysia, there’re only a certain tax deductibles you can claim in a year, these would include, books, computers, EPF, insurance and etc. However, all the tax deductibles will never be enough for you to not pay for the income tax.

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Know How Much Is Your Interest Charged & Interest Earned

There still have a lot of Malaysians do not know how to prioritize their interest charged and interest earned. I can see that there are quite a great number of people who save large amount of money in bank but keep the unpaid balances on their credit cards. If can, try do not practice in this way!

Generally, Malaysian credit cards charged 18% interest rate on unpaid balances. In other words, it is the amount that you will pay in interest charges per year.

For example:

18% / 365, so that’s about 0.049315% daily interest.

One thing you should know is credit card interest is charged based on a daily compounding basis, so you will end up with interest being charged on daily basis.

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Do I Really Need a Certified Financial Planner?

There’s once a time when I thought I’d pursue a career in financial planning as my main job after I changed from my career in the software engineering field to graphics design field. I’ve always been interested in providing financial related information to others. But it would take some time for me to study and take some certifications in order to become licensed financial planner. At that moment, I didn’t give up and found a new way which one step closer to achieve my dream — become a Financial Blogger!

However, i’m just the beginner in this field and need to always explore what kind of work a financial planner normally gets into. After 2 years being financial blogger, I have realized that the longer I stay in financial industry, the more easier in doing business.

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Money Issues of Being Self-Employed

Chinese would usually like to do business or being self-employed. This is because they can set their own schedule and work from home. You will have more opportunities to increase your income and spend more time with the family.

However, if you are self-employed then you need to consider more on your financial planning. If without a real financial plan in place, you may face a financial disaster in the near future. Here are some concerns that you should address:

Budgeting

There are certain expenses that you would incur in your daily living. But you need to plan your basic monthly commitment. I started my career as a financial planner and my budget strategy is to take into consideration my monthly expenses. I also look into my day-to-day cash flow to identify other expenses that I may not accounted for. Probably I will start with necessities like utility bills, petrol, food then followed by savings.

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The More We Spend The Higher Rate of Return On Investment Needed

I believe that those who are ‘thrify‘ will grow wealthy, and those who are ‘spendthrifts‘ will become poor. During my school time, i already have a game of adhering to my budget in which saving 50 cents out of my pocket money. As i known, the discipline of being able to control our spending and save consistently would make us success in the later stage.

For those who are from top management level who earn more than RM10k per month does not necessary that they can live wealthy. Let’s take an example, the managing director of a multinational corporation, who was earning RM120k per year. Given his hefty income, we expected him to have great substancial amount of money over the years, right? However, sometimes we may found that quite a great number of them whose total assets actually is less than RM500k while the net worth is less than RM200k. Plus, more than 70% of his net worth was from EPF savings.

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