Last time, my ex-employer manager told me that his friend can earn RM20k salary per month. But, do you feel that he can save lot money from his income? Based on his situation, after deducting tax and EPF, he gets only RM12k++ per month, and he mention that his living cost is quite high as he owns a Honda Accord and a RM600k home in KL. He likes to play golf as well and all in all expenses about RM11k per month. Thus, he manages to save only less than RM1k per month for a rainy day. Do you think he is good in financial management?
In my opinion, if the job that a person is doing now is for his/her passion, then it’s fine. With RM 20k income per month, monthly EPF should be around RM 4,600 (RM2,200 + RM2,400) and around RM 55,200 per year. After retired, the EPF amount probably will be around RM 1 million. Probably that is the reason he/she saves only RM 1k per month.
Anyway, if you have better idea, then try to think of buying property and don’t keep too much cash which deflate in value. That’s the rich people thinking all the while.
Besides that, you can claim up to RM10k tax deduction for the loan interest that you paid (if you are eligible). It’s the news from Budget 2010. But, I think it is eligible for those who buy the property between March 10, 2009 and Dec 31, 2010 only. If not mistaken, you can enjoy the tax deduction incentive for 3 consecutive years. If you know more about it, kindly give me some information.