Do you as a consumer want your information to get leaked? Of course not, right? information privacy is always a sensitive issue, it may offer many benefits to consumers, but also poses a potential threat to our privacy.
but did you already know about public and private information as a consumer ?
Public: demographic information, telephone directories, voter registrasion record, campaign contribution record, driver’s licenses, licencse and permits, legal information.
Private: credit record, employment information, medical record, school record, criminal record.
As a consumer, do you think it is important to share your private information ? well, for me, it’s not important, we, as a consumer, do not need to share our private information except for special case. We need to keep our privacy be secure, so no one would misuse it. Don’t share your private information to anyone, be smart consumer!
Have you ever struggle or in difficulty in paying your debt? It’s not like you don’t want to pay your debt, but you’re just in a condition where’s not good in financial.
Well, this time I would like to discuss what signs if you are in financial trouble.
- You don’t know how much you owe, this is caused by buying addiction you do not realize, you just use your Credit card anytime you want without knowing the amount of your usage.
- You often pay bills late, you know there’s fine you need to pay when you pay bills late, right?
- You get a new loan to pay old loans. Come on, why digger another new big hole for your old hole ?
- You pay only the minimum balance due each month. If you can pay more why not ? sooner is better than later.
- You spend more than 20% of your net income (after paying rent or mortgage) on debt maintenance. Remember about 20-10rule ?
- You would have an immediate financial problem if you lost your job. Why would you let yourself lost your job if you’re in debt? Or why don’t you find a new job? it takes a while, but as soon as you find a new job, your financial will get better.
- You’re spending more than you earn, using your savings to pay for day-to-day expenses. Why can you just stop this bad habit ? Think about your future.
Pardon my blabbering after the sentence, lol. By the way, the way you can get out of your trouble is to start making a budgeting (re-read my past post about it), you must know how much you earn, how much money you can spend on, know about 20-10rule and know about things that you need, not that you want. Be a smart buyer!
What is the distinguished difference of saving and investing? Well, for me, saving is putting your money to safest place, but you can get allowed to access it anytime you want and you need it. How about Invest? it’s the process of using your money to buy an asset or use it as a capital that you think has a good probability to make a return. However, for me, saving is a beginning to do investing.
Have you already decide to spend your money on items with this consideration?
Like, do I realy need this item ? Is it worth the item I spend making the money pay for it ? Is there a better use for my money right now? What level of quality do I WANT (low, medium, or high)? What level of quality do I NEED? How much can I afford? Should I wait until there is a sale on the item I want ? Should I choose an item with well-known name, even if it costs more? Do I know anyone who already owns this type of item? Is there a waranty and/or service contract on the item ? If so, is it comparable to warranties and service contracts on similiar items? What do consumer magazines say about type of item I am thinking about buying?
Well, of course, you guys ever have thought about it even if it’s just some. Like, compare the things with their cost, brand, specifications before you decide to buy them. We all do such of this thing without realizing it. It’s called consumer awareness.
Did advertisement affect you? I mean like when there’s an advertisement on tv or internet, did it attract you? or make you want to buy the item that they sell? Well, for me it affects me.
The way they advertise their product like how simple the presentation are but also give direct information, how they associate product use with those who have status, who are successful, and who enjoy and understand the “fine things in life”, how they associate use of product with a well-known person etc. Without realizing that, advertisment give us an influence.
But still, we have to beware of misleading advertisements like; promises of overnight medical cures and treatments, products developed after “years of research” and “proven to provide immediate positive results,testimonials from medical experts and satisfied customers, Offers, for a fee, to fix a bad credit record, “get rich quick” schemes, etc.
This time I would like to discuss car and loans. Have you ever give a thought about it? Well, as a student with no income this seems impossible to do, except with your parent support.
There are many costs that we would like to consider if we get one:
Ownership (fixed) costs:
- Depreciation (based on purchase price)
- Interest on loan (if buying on credit)
- Registration fee, license, taxes
Operating (variable) costs:
- Oil and other fluids
- Maintenance and repairs
- Parking and tolls
Of course, those all things not least cost. If you are an employee and want to do loans, you must not borrow more than 20% of your yearly net income and your monthly payments shouldn’t exceed 10% of your monthly net income (based on 20-10 rule).
Like I’ve told you in the previous post, the advantages and disadvantages of using credit. So have you already consider to use this one (credit card)?
Applying for credit cards is either not easy and hard. In Indonesia, you have to be in your 21, to apply one. For you in your 21 here are some information about the cost and feature of Credit Card:
- Annual Percentage Rate (APR)
- Grace period
- Annual fees
- Transaction fees
- Balancing computation method for the finance charge
- Credit limit
- How widely the card is accepted
- What services and features are available
Using credit card can benefits you like; get a discount, special price; promo buy 1 get 1 by using “x” credit card. But it also can put you in financial danger if you can’t control your use of credit card.