What is your way of saving or gaining more money? Tax is always a heavy burden on the people. Annually, at the end of each year, people would make tax-adjustments and try to receive tax benefits or deduction. If you are not earning a stable income, think of situations where your parents, or any adults, collected all their receipts and checked all their credit card spending for the year. That will most probably have to do with the tax adjustment, where they calculate the total spending and see how much money they can get back in return. With such tax-adjustments, there are several ways of economizing income.
Tax is not the only forms of economizing. Through interest rates from the bank people, rather than economizing, try to gain through the surplus. However, since the interest rates are decreasing in Korea, or stagnating in most cases, relying on them will not contribute to a large increase in one’s assets. Also, we should not forget about the fact that there are, for most cases, taxes imposed on the interest you get.
This is where finances come in. There are different forms of finances, and one of the most popular ones today is the financing product that is related to tax deduction. As the title of this article suggests, financing product that gives tax benefits is called “tax-exempt financing”. For those on a steady income, such as the employees, can get tax deductions on the interest they receive through saving. Especially for those in the lower income class, there are certain financing products that are offered in which they can save up to a certain amount of their money and receive annual tax deductions.
Such lucrative tax benefits attract many people on a tight budget or steady, but relatively small income to engage in tax-exempt financing. When considering joining such financing, it is important to first look at the period in which you are to invest your money. Either long term or short term, if you have even a vague idea in mind when you will want to get that money back as liquid money, you should choose the product that offers the appropriate period. Moreover, since there are so many types of exempted financing products offered by the financing market, it is important to compare and contrast all the products before choosing which one to join.