Budgeting

When going to a non profit debt relief service in order to get help when in credit card and mortgage debt where foreclosure could be in the near future if help is not obtained, there are certain steps that have to be followed in order to receive the help. First, the non profit debt relief service organization sends the person a lot of paperwork that they need to fill out so that the organization can understand what his situation really is financially. The paperwork usually has the person list out what money he brings in each month, what is put into a savings or other account, and what all of his bills are each month, including food and gas bills.

All of the person’s creditor information is also listed out, including the monthly payments as well as the total amount that is owed to the creditor. After all of this information in gathered by the non profit debt relief service, then a meeting is scheduled in order to provide counseling to that person about ways that they can change their budget and also resolve their debts. Sometimes these counseling services through the non profit debt relief service will take more than one session to go through all of the paperwork and decide on a plan of attack to help with the debt.

Once the non profit debt relief service has come up with a plan for the individual, then they may also offer to help that individual call the different creditors and let them know what the plan is and to get their help in going along with it.

Share This

When you outsource things like this to other companies, you actually free up time for yourself. If you have a team of people, the time spent on calling people you don’t really know can be used to serve the well-paying customers.

Telemarketing is something I have some knowledge of. After my ‘A’ Levels, I had some to spend while waiting for results. Many of the jobs paid $5 an hour, and those recruitment agencies took commission, so some of my friends became cheap labour. I chose telemarketing even though I hated to do sales. The job definitely beat the super cheap labour I provided when I sold magazines to schools. I think I clinched almost zero sales then.

My job scope did not even making cold calls. My duty was to man a hotline. We had a script to follow. Possible answers were anticipated, so we were trained to answer the questions. Basically, we were there to help the customer get the clients’ particulars, and they would take it up from there. We had to be there in anticipation of advertisements because a flood of calls would come in then. One thing I learnt from there was to have a smile while answering the call, because a smile can be ‘heard’ over the phone. The job was tough, but we were professional with every call.

Just today, I guided a group of volunteers to approach people for donations. I taught them to be polite when they approach the people, and be confident. Even when rejected, they should still wish them to have a nice day. These volunteers commented that they overcame their shyness as they had to force themselves to speak up. At the same time, they also had to learn to deal with hostile or indifferent people. They should not take it as personal rejection, but just move on.

Share This

Just to sum up what you can do to reduce your taxes.

1. SRS – You have to be quick, because many banks stop accepting applications before the year is over. That means you can’t wait until 31st December to put your money into fixed deposit through SRS, or do other investments. You may need to print out a form from your company to certify you are working, because SRS is meant for those who are employed. You may invest up to about $11000, but remember you can’t take the money out without penalty before current retirement age. Hence, putting just a few thousand dollars would suffice to your favourite cause today.

2. Charity Donations – Charity donations will get you double tax relief, so if you are feeling generous, don’t just stuff the money into those boxes you see along the road. Make a proper donation to the charities or organisations of your choice. Get into the festive mood and do something for others.

3. For single ladies who are preparing to get married, quickly register your marriage if your partner is an NSman. However, I am not sure whether there is still time to do so before the year is over. That’s because you get tax relief simply being the wife of NSmen. Not sure whether it is because you have to help them wash their uniforms while they are doing duty for the country.

4. Get the help of tax-savvy people who knows how to decide whether certain expenses can be counted. This will help to reduce your taxes.

5. Attend courses that are relevant to your work, or to something you plan to switch to within two years. You can make claims for these. If I am not wrong, as long as you pay for the course now, even if you attend it next year, you still can claim it for this year.

Sarah Tan – Singapore Profit

Share This

1. Tax Cheats Are Thrill Seekers
They tend to be energetic and impulsive. They love to take risks. I guess people take the kick out of being able to get with something.

2. In Business
He tends to be in investment banking and entrepreneurship. That explains the curry puff hawker, since he runs a sizeable business.

3. Men Tend To Cheat More
Overall, men tend to lie on their tax returns, while women are less likely to cheat because they know the penalties if they are caught. In addition, some men declare the taxes for their wives, so the wives do not handle the taxes. A larger proportion of women stay at home without income compared to men.

4. Educated Women Tend to Cheat More
While women form a smaller percentage, those with degrees tend to cheat more. It could be that with better knowledge, they earn more and hence are more likely to try to reduce their amount of tax payment. Those with lower education may earn less, and hence there is no need to cheat. Or is it due to different values?

5. Self-employed
Self-employed people tend to cheat more, because they are the ones who declare their taxes. Employees have their taxes declared by their employers, hence there are fewer opportunities to cheat. And because of this, they get audited by IRAS more often.

6. High Fliers and The Wealthy
The ones who earn the most have to pay the most. In some countries, they can pay up to 50%. Hence, there is greater incentive to try to reduce the taxes to get away with the exorbitant taxes. You hear about some famous sportspeople moving away to tax havens just to keep more of their money. Again, they get checked more often by IRAS.

7. Show Me The Finger
People who love to show their middle finger or gesticulate rudely while driving are likely to cheat. It’s because they feel offended by other people and society at large, and resort to getting even through such ways. 

Do you fall into any of the above categories? Adapted from an interesting article about the profile of a tax cheat in Psychology Today.

Share This

I’m quite curious about pledging money to presidential election. Do they get any tax relief or is it more to do with them making a political statement on which candidate they support?

Some people may think that the money could go to better causes, but sometimes, what we do with our money is really controlled in our hands. There are many causes like what I’ve mentioned in another post about the benefits of donating to charities. It is important for us to have a strong belief in what causes we stand for. Through a simple action of giving money, it speaks volume on what kind of person we are, what values we stand for, and what causes we believe in.

In many books about wealth and also in various religions, a central idea of giving money to the charities is always there. It is useless to hoard all the money we have in the world and not give a single cent to other causes. So in my opinion, there could be various agendas when people fork out money, but the end does justify the means. After all, to be in a position when we can afford to give is better than to be in a position to beg for money.

In America’s case, voting for each party candidate does speak volumes about your own belief system. It also tells us what they hope to see in candidates by supporting those that represent them the best. By the way, Jodie Foster votes for Hillary Rodham Clinton while George Clooney votes for Obama, both from the Democratic Party.

Sarah Tan- SingaporeProfit.com

Share This