How much a car "really" cost, if you are high income, highest tax bracket at 26%.
1) For a car cost that RM100,000, you need to earn RM135,135 to pay for the car, that is 35% more.
2) For a credit card interest of RM200, it means you have to earn RM270 - that make the interest actually very costly.
Therefore, it it important to pay as many thing as much as possible with "pre-tax money" than "post-tax money", isn't it logic?
Smart Financial Planning: Try to look for more tax-exempted income or turn expenses into tax-deductible expenses.