Solving money problems with higher pay?

Most of us have the understanding that higher pay would solve almost any money problems we have. My readers would have to come to a rude awakening! 

First off, let's see how much of your basic salary goes to taxes and inflation. 

Inflation 5% per year (Official figures are around 2%)

Consumption tax 6%

Service tax 10%

Income tax 7-24%

Total tax per year: MINIMUM 28%

Staggering isn't it? ONE THIRD YOUR INCOME GONE~ POOF! 

So, the problem isn't with earning more, as you can understand, earning more puts you at a significant disadvantage as well...MORE TAXES! 

How then to reduce your expenses? Firstly, cut down your expenses in fancy eat-outs and even in franchise chains. that should cut your consumption tax and service tax expenditure. 

To fight inflation, you have to start protecting your income. No, not by saving your money. You should own PRECIOUS METALS. If inflation is 5% per year on a good year, your money in the bank (after returning 2% a year in interest) is reducing at a rate of 3% per year. In about 30 or so years, you money is gone..POOF~! Mind you, that's on a good year. 

You do your own maths: Eating out has been becoming more and more expensive! Even if the price doesn't change, the portion does! Now, what happens in the scenario that our subsidies are no longer sustainable? I bet inflation would soar wildly! We often forget that in Malaysia the subsidies are a blessing in disguise that actually keep our inflation level LOW! As oil prices SOAR thanks to global unrest, and unlimited money printing, inflation of 10 to 20% per year is just around the corner. Imagine your hard-earned savings gone...in just 5 years! 

So, dear friends...please be prepared!