What to Do to Your Credit Card Debt

Credit card is a magic card which is made by plastic token (ha!). Just kidding, the writer really wants credit card to be a magic card which can buy anything, though. But unfortunately, it is limited based on a variety of factors ranging from an individual's ability to make interest payments, or an organization's cash-flow and/or ability to repay the credit card debt¹. It simply means the limit of the credit card will be based on our ability to pay back the debt after we use the credit card.

In spite of how convenient it is to use credit card when we go for shopping, there is risk we need to consider. The risk of falling into debt, when there are unexpected expenses that makes it impossible for us to pay credit card bills, is the worst case we need to avoid. The trick to avoid that kind of situation to happen, is to keep our credit card expense below 20% of our monthly income! Whew. (It always feels relieving after spitting out the most important stuff of a writing.) But really, that simple trick is important to remember, dear readers.

“But writerrrr.… what about when it’s inevitable situation, it’s really happening, or when it’s already been done?” The writer imagines a reader asked. “Well, poor you.” Hahaha. Just kidding. Alright, first thing first, you don’t want to dig yourself out of a hole by running away from the debt then think like you can put the problem in a pigeon hole. No, you absolutely don’t want that. Why? Because it will ruin your credit report! Next is your whole history of life! (OK, that last one is too much.) What the writer means, it’s that you shouldn’t do it because you will be charged by late payment fees month by month.

What’s worse than being charged when you pay your CC bills late are the creditors will give a bad mark on your credit report after second time you’re late to pay, and the most annoying thing, the interest rate will go up. After you realized running away is bad, the next thing to do is to call the creditor’s company. Let them know why you pay late. “Is there any possibility of being reported if I pay late?” Well, maybe yes maybe no. The writer means, what’s more of practical knowledge the normal first-year college student – whose money solely given by her parents – know about credit card? Ha. But don’t that question gets to you, dear readers. This blog is quite reliable since even though the writer’s still an amateur in financial matters, the writer is quite a passionate learner, not to say an above-average teacher (what?). 

Anyways, you can check complete information about What-If-I-Don’t-Pay-My-Credit-Card-Bills stuff at http://lifehacker.com/what-happens-over-time-if-you-dont-pay-your-credit-car-1424115120. Hope that will help you. Want to check more about APR, Grace Period, Annual Fee, and Transaction Fee of Credit Card? Check out:

http://yaplinapau97.blogspot.co.id/2016/04/lets-say-hi-to-credit-card.html

Best of Luck!

Source:

¹https://en.wikipedia.org/wiki/Credit_limit

http://lifehacker.com/what-happens-over-time-if-you-dont-pay-your-credit-car-1424115120.

5 Reasons Why You Want to Have Credit

   Credit is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future. There are reasons why you want this stuff. First, able to buy items immediately. Are you looking at a new branded satchel from outside glass window of a bag shop? Then thinking to buy it long after your next payday? No way! Good news is, we don’t have to wait too long just to buy things we want or need. Having a credit will make us able to buy items, right at the moment we see them.

   Second, don’t have to carry cash. Carrying around full-content purse or maybe a bag of cash will do you no good. Instead of giving a relaxing feeling of having much money in your hand, it gives you the feeling of anxiety – because you carry around a large amount of cash you need to keep safely. By having a credit, you will not have to overwhelm yourself with much money in your hand, and just go buy anything you like with merely a single credit card. Third, creates a record of purchases. While buying day-today items, we usually tend to forget how much we have bought. Having a credit card will help us to know our detailed record of purchases within certain period of time.

   Fourth, more convenient than writing checks. We all know these days, using checks are underrated. In another word, it is just too old-fashioned! Having a credit card, you can have more satisfying shopping experience because your credit will be accepted by almost every shops and at any time in a day! Fifth, consolidates bills into one payment. This is simple yet very convenient benefit from having a credit. It can consolidate all the bills into one payment in papers. Which means all of credit holder can take conveniently check out their bills that written in papers because they do not have to collect all bills or payments every time they buy things.

Business Banking in 2016

Hi readers!

Today,

Just like always,

Time goes by…,

But,    suddenly,

I realized it’s already April 2016.  (  -3-)(-3-  ) (‘o’)(~_~)?!

Anyway, we talk about banking (not baking) today in 2016.

    There are several types of bank divided based on its activity: The bank that deals mainly with individuals is generally called a retail banking, while a bank that deals with capital market is known as an investment banking, and a bank that only deals with businesses is known as commercial bank or business banking. Our main focus is the business banking. For furthermore information, business banking is a company's financial dealings with an institution that provides business loans, credit, savings and checking accounts specifically for companies and not for individuals.

    Right now, business banking face three critical battles: restoring customer trust, defending their payments business from new entrants and avoiding commoditization. Banks can only improve efficiency, customer relevance and profitability by reinforcing core business operations. The core business operations that needed to be achieved are optimized and differentiated branch network, sales force effectiveness, basic multichannel integration, and digital distribution.

Those cores will make space for growth for the bank, so that the bank can focus on the next path it needs to take.

    The next path it needs to take is to be one of three business banking models: The Intelligent Multi Channel Bank, The Socially Engaging Bank, and The Digital Ecosystem Bank. The first model uses analytical methods from the customers’ data to find customers’ financial needs, the second model uses social media to get closer to the customers, and the third one uses mobile to become the center of an ecosystem. The three models can be the resolution for improving bank’s performance and then effectively and successfully competing through 2016.

A short reflection from the writer about banking:

    Honestly, I don’t even know what I’m writing about there. But hey, I learned that there are many types of banking and banks. Business banking or commercial bank is only one of a kind that deals only with business companies, not individuals. At first, when I watched the video in the class last week (yes, this post was written based on a video provided by my English lecturer, Ms. Paskalina.), I didn’t know what the word “bank” in the video refered to. Like, I was totally ignorant that there are types of banks. That made me confused when I heard from the video, something like “bank is now turned into 3 models”, when what it actually meant was the future bank “should” be one of three models (it is also meant that someone/something suggests the idea of the three models). 

    I was also confused about the three models itself. The Intelligent Multichannel Bank? The Socially Engaging Bank?? The Digital Ecosystem Bank??? And their functions. I mean, it sounded a lot like ant man in the group of marvel movies, I was just not at all know there are stuffs like that (I admitted I am a bit old-updated here). So that were the time in the class I was just unconsciously blank-minded, then wondered around, and drown in my own thoughts. Until I searched again in the internet and I noticed what “the three models” refered to were the commercial bank, the one which deals with business companies, and not another type of bank.. *hmm.. that's why it talked about sales force effectiveness, optimized branch network, etc....*I thought. And... The three models are the models the “commercial bank” suggested to be, for its customers' sake. J J J

Here, check it out : à https://www.youtube.com/watch?v=QggYdq5LBNU

And the official website: à https://www.accenture.com/id-en/insight-banking-2016-next-generation-banking-summary.aspx and https://www.accenture.com/id-en/~/media/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Industries_13/Accenture-Banking-2016-Infographic.pdf

Thanks for reading!

Best of Luck J

Buy A Home

Hi, readers.

If you want to buy a home, you’ll need to consider several items you want to own from home you choose to buy. First of all, you can start with considering the exterior facilities. For example, you want a fountain filled with fishes. It must be wonderful to sit on the fountain, looking at the fishes, and hearing the sound of flowing water from the fountain after hard and busy days. Second, consider exterior construction. For me, I want good-quality green weeds, pine trees, and some colorful roses in the garden, surrounded by small white wooden fence. Wow! The home will look like a heaven with such exterior!

Third, consider interior construction. For example if you want to have a kitchen like me, because I love cooking and trying new receipts. Of course, you can make a list of rooms which you want-it-to-be-there in your new home.  Fourth, consider the interior design. For me, a green-painted wall, good lighting, and one thing that is the most important thing I want to be in my kitchen, is a wide window. Oh My God, I’d love to have window in the kitchen since I’d probably spend most of my time cooking in the future (chuckles) and I need a window since I love looking at outdoor stuffs. Like when it is a shiny day and I can see the sun shine brightly. When it is cloudy day, then there’ll be clouds all over the sky. When it is a rainy day, there’ll be huge clouds darkening the sky while it’s raining, and maybe, a rainbow to be gazed at after the heavy rain. Whew. I am sure I will mostly stay at home for the rest of my life!

Now, after all the considerations, here are the questions you need to answer. When to buy home? For me, I‘d like to buy a home after I am financially independent and I have a stable payment or job(s). Where is the location of the home? Again, for me, I’ll likely find location by contacting people related on real-estate or a trusted buyer’s agent. Will you buy the home by cash or mortgage? If it is me, I will go along with my condition in the future. If I can pay in cash, then I’ll gladly pay in cash rather than paying monthly. That is because I don’t like the interest when I have to pay monthly. But if the condition is that I don’t have the cash on the moment, then obviously I will just pay monthly even though I don’t like to pay for the interest (haha).

Thanks for reading!

Best of luck readers J

Living on Our Own

Hi readers!

This week’s topic is about “Living on Your Own”.

What do you think about the topic, readers? For me, I think it’s a very interesting topic. Why? Because I want to start living on my own as soon as I graduate from college. The problem is that I need not only to be emotionally ready, but also to be financially independent. Well, I need that because I don’t want to find myself moving back home – or worse, falling into debt when things don’t work out for me because my plan to move out is premature. This makes me even more realize that preparing to live on one’s own before moving out is essential.

In my English class, I am reminded about types of living expenses or we can call it as moving-in costs. Moving-in costs can include more than rent/mortgage payment. Cleaning deposit, security deposit, utilities deposit, and telephone deposit are also moving-in expenses we may not immediately think of. But that is all theory.

Here is the real thing we need to plan:

If you want to live on your own like me after graduating from college, we can start it by setting up a budget that would allow us to rent an unfurnished apartment (oh yes, an unfurnished apartment). So basically, we need to calculate our future income, our fixed expenses, and our flexible expenses. Future income includes our future job, side job(s) (optional), and other (optional). Fixed expenses can include rent/mortgage, car insurance, and car payment. Flexible expenses are savings, food, utilities (gas, electric, water), transportation, bus fare, gas and oil, parking and tolls, repairs, clothing, entertainment, household items, and personal items.

After that, the formula goes like this: Future income – (Fixed expenses + Flexible expenses)

Note:
*All variables are per each month (future income each month, fixed expenses each month, and flexible expense each month.)
*The result of the formula determines whether it is possible for us to live on our own or it is not.
**If the result is plus, it means there are still some money left per month. Congrats-!
**If the result is minus, it could mean that our future income is not enough, our living expenses are too  much, and so on. Anyway, we need to do something about it by any means, so that living on our own becomes more realistic and attainable (y).

Well, a little motivation for readers who may experience the feeling of biting off more than you can chew while setting up the budget for living expenses:

Learning how to make a budget isn't the most exciting thing I do too when I first thinking about living on my own, but I am taught that it can make the difference between just getting by and making the most of my money so I can enjoy my independence to the fullest.

Best of Luck for Us!

Learn How To Create Your Own Art of Budgeting

Hi readers!

This second post is talking about The Art of Budgeting.

Before that the writer wants to say…:

I am sorry for disappointing you with the last post. To be honest, I barely make the posting 2 minutes before the deadline (Actually I am writing for my English assignment.)! And so my writing is bad and unorganized at all (sigh). But now that I’ve got everything under control, I am a bit confident that my writing is better than the late post. So, please forgive me? Tehehehehehee….. (OK, this feels awkward). Last but not least, please enjoy your reading. Thank you!

WHAT is the art of budgeting?

The art of budgeting, by my definition, is the way you estimate your future expense(s) over a specified period of time. Art of budgeting is related to one’s life goals. To find your own art of budgeting means that you have to know your own goals. Your goals are the determining factor in defining your art of budgeting.

First of all, you need to know your educational, social, financial, family, health/physical, and recreational goals. Second, you need to work with your goals by asking yourself, “What goals are the most important to me?” Write it and identify each goal as short term (1-4 weeks), medium term (2-12 months), and long term (1 year or longer). Finally, you need to list and prioritize six of your most important goals. After each goal, identify what you could be doing now to work toward the goal, and what resources (if any) you need to achieve each goal.

Here is the example: My educational goal is I want to finish my undergraduate program. My social goal is I want to join Accountant Student Community as a main member. My financial goal is to open up a course for elementary student. My family goal are to pay for remaking my family’s kitchen and to take care my aging parents. My health/physical goal is to keep training my shaolin kung fu. My recreational goal is to go to Maldives Island.

The most important goals to me are to finish my undergraduate (long-term), pay my monthly health insurance’s fee (short-term), pay for taking a kung fu shaolin test (medium-term), save money for caring my aging parents (long-term), and to open a course for elementary students (long-term). Now, what I can be doing now to work toward each important goal: study regularly, avoid buying unimportant things, keep working as private elementary part-time teacher, save my pocket money and just buy things I really need, and exercise my kung fu at home. The resources I need to achieve my goals are money (obviously), books, knowledge about how-to-achieve-things, strong willingness, self-control, patience, and definitely, actions. That’s it. Thanks for reading. 

Best of luck readers!

How To Make Money

There are many ways to make money.

One of it, is to work for a company.

To work for a company, you need to prepare a lot of things first in order to increase the possibility that you're going to be accepted. And here are some practical things to do before you apply for employment position!

First, you need to find a job that is suited to your educational background. It is important to know in which field you are most skilled at because you already have some experiences or training in that field.

Second, let people know what you looking for. "If you’re only looking for jobs online, you’re missing out. Forty-one percent of people surveyed by staffing company Manpower reported that networking was the key to landing their latest job, as reported in Forbes. Many open positions are never posted online."

Third, clean up your social media.There’s a good chance your potential employer is checking out your social media profiles. So before that happens, you need to do some clean-ups and leaving only proper things to be looked at. 

After that, you can confidently apply to a company.

Eitts, don’t forget, if you are invited to be interviewed, try to think about question that might appear on the interview. You don’t want to be looked stupid when you are asked about what you know about the company you applied, right?

Best of luck.