Posts Tagged ‘money’

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:

creditlimitincrease

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.

Spending Money To Defend A Cause or Not

Thursday, November 20th, 2014 by

Interesting situation I saw today where there is apparently someone who is gung ho in trying to take a website down that involves publishing information that critically analyzes a public service here. As it would appear, the perpetrators are doing things like a denial of service attacks (DDoS) where the hope is to overwhelm the site in such a way with fake Internet traffic that it would get the site shutdown. So in this situation, would you be inclined to spend the money to secure the site or simply let them continue?

I was thinking how this is like one of those times where we usually turn to money based solutions when the free options are probably best. Like in this case, instead of spending all that money to try and stop such people it’s probably more effective to in a way let them do it and highlight it. Might sound strange, but at times like that where you are not in a financial position to have all the bells and whistles it’s better to get help from others I think.

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.

If You Saw Friends or Family Losing Money For Love

Thursday, November 13th, 2014 by

Imagine if you saw a scenario where a person you knew all of a sudden was in a relationship with a person where he began to spend a lot of money on them to the point where they were sacrificing retirement funds. We aren’t talking about small lavish gifts here but rather things like a home. At the same time, based on the fact you feel that the person is simply being used for their money. Would you be inclined to do anything about it or say that it is their money and they are free to spend it in any way they want?

This is one of those things I see in like the movies all the time but I never actually expected to see it in real life. There isn’t much you can do either as who are you to tell a person that they should or shouldn’t be pursuing a relationship with someone right? I feel the only thing I can do is gather up the facts in a rational way financially and hope that it would encourage one to spend rationally.

Come to think of it too, I have heard multiple stories this year on how people in love have been willing to compromise themselves financially such as allowing others to take loans out of their name. As strange as it may sound, it makes me wonder how one would train themselves to avoid being abused financially in these types of scenarios. Generally speaking, we are kind of groomed by default where if you don’t take care of the one’s you love financially then you are a bad person, so to speak. I am thinking at this point the only one can do is be supportive.

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.