Friday, November 26, 2010

How to improve quality of life through creation of multiple sources of income

In Malaysia tax system, when tax payer file a return (Form BE or Form B), you will find the following fields for taxable income.

  1. Business
  2. Employment
  3. Dividend
  4. Interest and Discount
  5. Pension, annuity etc
  6. Others casual income.
Of course, there are other income but since it is tax exempted, will not be required to disclose in Form B / BE, example are:-
  1. Gain from disposal of shares
  2. Gain from disposal of property
  3. Gain from disposal of collection item (coins / notes etc)
  4. Many others....
What is my point?

We should strive to create as many sources of income as possible so we will have better quality of life..... because:
  1. Less stress level as compared to if you (and your dependents) are surviving based on a single source of income (e.g. employment)
  2. More choices in life in term of what to eat, where to go, when to do something... not too restrictive by budget. Yes, we still need a budget even we have earned 200% more this year than last year, else we definitely will never achieve the stage of healthy financial position.