Posts Tagged ‘finance’

It Takes Facts About Interest Payments To Change People

Tuesday, July 22nd, 2014 by

I saw this interesting clip today of a couple who was essentially getting financial advice to help them get out of debt. The story itself wasn’t anything new as it was simply a case over spending and buying high luxury items. When the financial adviser went over their spending habits the funny thing was they seemed kind of contempt with it as if it was normal. Speaking for myself, putting like $15,000 on your credit card that you can’t pay off is alarming by itself.

It wasn’t until they dived into the topic of how much credit card interest they are paying each month where it finally dawned to the couple that things need to change. Isn’t that kind of crazy that it takes that little detail to get people to change their financial habits? It almost comes back to the general point on how many people don’t like to see other’s benefit where in this case it made them realize how the credit card companies got money from them. Before hand, I guess it is safe to say that they saw the situation as they were the one’s getting the better deal out of the credit card company.

I am almost interested in trying that technique to see if it works on others too for everyone that has an outstanding credit card balance each month. It’s like you don’t even need to go into detail to get people to think about their future. Instead, just show them how companies are making money off of them and it will be an instant change in mindset.

Still Waiting For Sales In A Membership Based Store

Monday, July 21st, 2014 by

I was with another person doing some shopping and price comparison today where they happened to have a membership card to a store which supposedly gives you better prices for items compared to traditional retail stores. Upon our little journey though, that definitely wasn’t the case in many instances the regular stores often offered cheaper prices and at the same time you don’t have to buy the items in bulk.

Interestingly enough, it seemed like the sale items at the membership store was consistently cheaper than the regular stores. So the simple conclusion out of this test is that even if you pay an annual fee to get exclusive discounts from a business you generally still need to wait for a sale of some sort as the regular prices can be just as expensive as non-membership based stores.

I think many people often assume that if you have to pay to shop at a place then the prices must truly be lower. Therefore, people usually throw away their shopping savviness and start throwing things into the cart. That just isn’t the case whenever I compare prices personally. While granted you may get some valuable spiffs and discounts at places that require a fee based membership, you still need to keep an eye out on what is actually on sale and is a good value I think.

Better To Not Pay Interest Rates At All

Friday, July 11th, 2014 by

So I got this offer for a credit card today and by the sounds of it I was pre-approved for a $10,000 credit limit. What I found that was kind of amusing was the sales pitch as you can see here to justify the annual fee of the credit card:

interstcardoffer

As stated here “The money saved on the interest charges easily covers the $29 annual fee.” I think the answer to stuff like this should be “no” and “no” some more as in my view if you don’t actually have enough cash to buy the item then you shouldn’t be using a credit card. I suppose this is what people are taught to do with credit cards though where somehow paying interest fees on them is okay and normal.

It did made me wonder why I got this offer though as I don’t think I am a very profitable customer for the banks in this regards since I always pay my credit card statements in full. If anything, I use it to try and get all the benefits out of it that I can with money that I was going to spend anyways. Paying interest rates is not a good idea to use one.

Can Financial Issues Be As Simple As Your Social Circle?

Monday, July 7th, 2014 by

This was kind of interesting as I heard a story where there was a person who was apparently in massive amounts of debt from the usual spending more money than one has scenario. He had an action plan to get out of debt that didn’t have to do so much with budgeting. Instead, it revolved around him making a decision to completely associate himself with different people on a daily basis. This apparently worked for him too.

The concept for this was pretty straight forward as different groups of people have a different idea of entertainment. For example, one group’s idea could be that having a good time means spending like $100 a night at a bar whereas another group may think playing a sport outside is exciting. With this one change he was able to turn things around pretty quickly.

I must admit, this is probably one of those factors that we never want to talk about as it sounds kind of cold and harsh to think of our friends or associates as money drainers huh? I must admit it does have some kind of merit. For example, before I had a person whom I haven’t seen for a very long time come back into my life. He was unemployed and for the most part was getting money from his parents.

It seemed like every time I hung out with him he always wanted to dine out or buy a drink. Just hanging around him for a week made me spend nearly $100 extra as I didn’t want to be impolite at like a restaurant. But that is a simple example of how the people you associate with can definitely influence your financial situation.

I suppose this is something you truly do need to think about if you are in a financial rut. You need to seriously look at what or who is influencing you to spend more money as opposed to making or saving more.

Having A Child Recognize Monetary Value

Tuesday, June 17th, 2014 by

It’s no surprise here that there is currently a teacher’s strike were as a result every child is out of school. As a result, today I spent some time with my nephew as a form of “babysitting.” Funny enough, I find that I have an easier time communicating and getting him to listen as opposed to say my parents trying to do the same. People might think this sounds weird, but talking about finances and relating it to his everyday life seems to make him more disciplined.

It was awhile back for example where I taught him how buying a beverage at the supermarket is so much cheaper than at a restaurant. As a result, whenever he gets the urge to want something now in a child-like fashion, asking him how much the item costs or if he could think of a way to get more for less makes him think and behave. This worked surprisingly well for even other stuff I noticed today such as if he saw a toy that he immediately wanted. Asking him how much money he had or knowing that people have to spend money to get them those items pretty much stops the whining.

That just makes me reflect back on my own childhood experiences and how recognizing the monetary value of items was a good way to get me to be sensitive and understanding to prevent myself from recklessly wasting money or expecting everyone to give me things. Of course this doesn’t mean you should dump the child into an intense lesson about accounting as even I wouldn’t have had the attention span for that.

I’m not a child psychologist or anything, but it sure makes you think where like in some cases if a child is always yelling and screaming about not getting a toy a lot of adults would resort to something aggressive to get them under control. From my experience, maybe a little financial education is all they need which will help in more ways than one.