Posts Tagged ‘Financial Management’

Credit Utilization For Credit Score

Friday, November 21st, 2014 by

Today I got an interesting message where I had credit card companies telling me how I am pre-approved to increase my credit limit. As you can see like in this example I was being informed that I can increase my credit limit by an additional $5000:


I was debating at first if I should or not as I consider my current limit pretty high as it is and I don`t go crazy spending like say 80% of my limit every month. So in my mind the only real use I would have to increase my credit limit is the whole notion that it will potentially make my credit score higher.

For those who are unaware, credit utilization is your credit limit in comparison to your credit usage. For example, if you have a $10,000 credit limit and your balance is always $6000 then your utilization rate would be 60%. If you usually only have like $500 then your credit utilization rate would be 5%. Generally speaking, it is advised that you have a low credit utilization ratio as the lower the number the better it will reflect upon your credit score and history.

I can see why a bank would love it in this case as it probably encourages people to potentially shop more which means more money for them. After thinking about it, I decided to accept the offer. The sole reason? Simply as a way to potentially make my credit score better. In my situation, I always fully pay off my monthly statements and I don’t go crazy buying life luxuries that I cannot afford. So to me, I only see the positive where it will reduce my credit utilization ratio.

Moving Closer To Your Place of Work

Monday, November 17th, 2014 by

Would you actually think of literally moving your place of resident to somewhere closer to your workplace as a way to save money? Example, imagine you rent an apartment and it takes you an hour to get to work. Would you actually think of relocating to save transportation expenses? While obviously there are a lot more factors to moving, this was a topic I heard about the other day and what surprised me was that many people don’t even consider it at all.

In some cases I heard it would only be an initial minor annoyance of having to move. Other than that they would save so much in expenses such as gas and generally having more free time to do other things in the day. In many ways it makes me think how we simply don’t like change even if it makes sense logistically and financially. Of course this probably doesn’t make sense if you are simply working at a job that is intended to be temporary. But if you are set on a career with a particular business evaluating if it makes financial sense to relocate should be an equally important way to save money I think.

Expecting Better Service Over Time For Your Money

Wednesday, November 12th, 2014 by

Today I was told of a scenario where there was potentially a group of seniors who were frustrated that the property management fee for them would potentially go up as a result of the company informing them that they need more money. At the same time, the residents complain that they usually don’t get problems solved where it’s almost like the management company is not doing its job.

I was then told some of the fees they pay for contractors and in some cases it sounded ridiculous. I was just thinking how in this situation it is highly likely that since the occupants mostly involves seniors that they simply write cheques without thinking too much. Essentially, if your day to day life seems livable then no need to question the bills. This just reminds me how even if you are getting by with whatever services you pay you should still continually compare its price and quality with other providers as well.

Unfortunately, companies don’t usually voluntarily improve like in these cases unless they think that you know you can get a better deal. Always expect better I think where if the company you are paying services for isn’t at least improving or innovating then someone else is. In that case, you would probably get better value and service for your money. I am almost inclined to do a little investigation on this to see how bad it is. Would be an interesting financial story.

Internet Access As A Budget Necessity

Tuesday, October 28th, 2014 by

It wasn’t too long that when it comes to Internet access most of us would put it into the same category as the cable TV service. Basically, it’s nice to have but not necessary. I was then watching some conferences today discussing how it’s just a matter of time until everyone is connected to the Internet. This then brought up conversations how you pretty much need to consider this service as essential to flourish.

I know for myself, nowadays I almost consider Internet access as like electricity for a house. I mean technically we all can live without the need of power, but it’s like everything is designed to have it. There are even companies nowadays that require people to access websites to do things such as payroll. In some ways I consider it more integral then the traditional landline service where the two have kind of swapped.

It’s interesting too as while I was doing that welfare challenge they mentioned that people budget a little over $20 a month for phone service to try and find a job. I am almost inclined to say like with that having access to the Internet provides way more opportunities as even for jobs a lot of companies nowadays say apply online only. Does anyone feel it’s not a necessity yet where it’s a priority of your monthly budget?

That Homeless Joe Story

Monday, October 27th, 2014 by

I must say, this video was crazy to watch. It essentially showcased a person named Joe who is homeless and does everything he can to survive. You would think that stereotypically he would only do things such as panhandle for money (Which he apparently makes like $150 a day on average). But that’s not the shocking part. The big twist to this is that apparently one of the biggest way that he survives is that he constantly finds women who are willing to sleep with him and this provides him with shelter many times.

It’s kind of hard to believe that someone can essentially live like that. He did say a quote where it was something along the lines of he essentially just tells people what they want to hear which makes them accept him. For sure I don’t agree with the person’s choices in life morally. In some crazy way though I was thinking how what he does is almost no different than say an opportunist sales person that sells someone into buying like say a useless $5000 vacuum cleaner or a person that wooed their way to the top. Mainly just different a scenario to get money and power to survive.

This video sure shows you the power of image style too huh? Like here it appeared that having good clothes played a pivotal role in him finding ways to portray a certain social image to enable him to do what he does. It seemed like he recognized that too. In terms of finance, I was thinking here how he makes a ton of money doing what he does when you consider that he doesn’t pay any taxes it seems. Kind of shows too that making money is one thing. Finding ways to keep or maintain it is the bigger challenge.