How Credit Can Be Your Friend

Credit Card Tips

First Published Date: April 18, 2009

There is no doubt that an over-reliance on credit is a bad thing. One has only to look at the mess that the world is currently in to see that the banks’ readiness to lend to people who really should not have been borrowing was unwise. Equally, some of those people doing the borrowing must have been aware that what they were doing carried a huge risk. And yet, if handled correctly, credit can be a way of doing things to your advantage in the long term.

To make credit work for you, you need to keep in mind that risk management is a vital part of the process. As far as possible you need to keep risk out of the equation altogether. You need to keep your interests, your long-term security and needs in the forefront of your mind. Although things like high-value purchases of consumer items may seem hugely tempting, they are to be ignored if there is any chance that they will infringe on your financial security.

So in reading this, you may well be questioning how credit can be your friend at all. The truth of the matter is that credit allows you to spread life’s costs. This is possible without a great deal of risk, because banks will be happy to give good lending deals to people who show the ability to manage credit. And you can do this by living on credit. Don’t worry – this is not as risky as it sounds. It simply involves using the rules to your advantage, and requires discipline (so if you are prone to getting distracted by bargains, do not proceed unless you are sure you can restrain yourself).

The first step is to open a savings account. The best one to go for is one that has either got no limit as to how much you can put in monthly or over a year, or a limit that matches or exceeds your salary. Of the options this leaves you, pick the one with the highest rate of interest. This account is where you want to put your wages each month.

Now, take out a credit card. The experiment ends here if a bank will not give you a credit card due to past borrowing nightmares – but that is probably a good thing. This credit card will be what you use to do your essential shopping. Groceries? On the card. Fuel? On the card. Bills? On the card, if possible. Is this reckless spending? No, it is not because you are going to pay the balance off, in full, before it gets the chance to accrue interest. Most cards accrue interest monthly, but it is not going to be an issue if you monitor your card balance and withdraw from the savings account to pay it off every time a balance appears.

If you do this with a modicum of discipline you will find that there is still money in the savings account at the end of the month, and it is accruing interest. Meanwhile, your credit score is increasing with every full balance payment you make to the card. Not only are you financially solvent, but you are making savings, and have the borrowing power to get the best mortgage possible should you have your eye on a house, or a loan to buy a car. And the savings? They come in very handy if you want to bring down the monthly payments on a loan.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on Apr 18, 2009.

Doing This Makes You Your Credit Card Companies’ Best Man

Say NO to Cash Advances

First Published Date: May 30, 2015

As I am writing my next book Credit Card Hacks: What Credit Card Companies Don’t Want You to Know, I would like to share some points I just finished writing about cash advances. This is a feature your credit cards offer that should be avoided at any cost and here is why.

Want to be the most popular person at your credit card companies? Taking out cash using the cash advance feature will definitely do the job. Credit card companies make the most money when you take out cash advances. The interest charge starts the moment you take out cash at 22 to 30 percent, or at even higher rates. And then in addition to that, you will be forced to pay another 1 to 3 percent cash advance fee.

And there is more. What your credit card companies don’t want you to know is that you could still be paying interest on cash advances, even if you have paid the full cash advance amount you took out, if your credit card has balances – even a single dollar. So it is possible you may be paying high interest on something you thought paid off.

So, how you can stop paying high interest charges? You have to bring down your balance to zero. But there is more to it and topics like this and much more will be revealed in my next book Credit Card Hacks: What Credit Card Companies Don’t Want You to Know. Currently I am finishing up its last two chapters and expecting to be published on the Amazon Kindle platform in the next 3 to 4 months.

Keep an eye on A Dawn Journal, as I will keep you posted with any updates as I continue working on it.

Bank of China Tower, Hong Kong

BOC Tower, Hong Kong

First Published Date: Sep 19, 2009

Much of modern architecture is about making a statement. In fact, it is probably truer to say that architecture has always in some way been about making a statement. Even the most unremarkable buildings have something to say about themselves, even if that thing is simply “I am simple and unobtrusive, it is what happens inside that is important”. Nevertheless, the increase in the amount of money spent on architecture has been enough to persuade architects that what they must provide in this day and age is a little bit of “bang for your buck”. Any major development today, you can be assured, will not be a simple straight up-and-down edifice with sober decoration. One look at the Dubai skyline will make clear the direction in which the wind of modern architecture is blowing.

As far as statements go, it is not merely the modern day buildings that seek to make themselves heard, as a look through the last few decades will tell you. One building which has been in situ for nearly twenty years in its current form, the Bank of China Tower in Hong Kong, is very much a statement building. Its bold lines are certainly impressive, and although it was conceived in the Eighties and opened in 1990 it still looks modern to most eyes. With the importance of the number eight in Chinese culture,  the plan was to open the tower on the eighth of August, 1988 (8.8.88). This did not happen, and this seems to fit the story of the tower, as it seems to deviate from the long-held beliefs about auspicious buildings and projects in Chinese culture.

For one thing, the building does not conform to the standard practices of feng shui which are broadly considered to be of major importance in China and its territories, in some places seeming almost to have a sense of open defiance against the rules. This is not quite the intention, and in fact the architect who conceived it, I.M. Pei, consulted with experts before finalising the design, removing a majority of the X-shaped structures from the final look as they are considered to bring bad luck. On the other hand, the presence of numerous sharp lines in the building is considered to be provocative. Nonetheless, the building has yet to be befallen by any major difficulties. On being built it was the tallest building in all of Asia, and the first outside the United States to break the fabled 1,000 foot mark.

One other interesting feature of the Bank of China Tower is its shape. From certain angles it bears a marked resemblance to a meat cleaver, and indeed this shape is known as a “cleaver building”. While this in itself may seem to be just a common fact, it becomes interesting when one notes that the “blade” of this cleaver points across the road at another building – the headquarters of the Hong Kong branch of HSBC, to be specific. A coincidence? Possibly, and possibly not, but interesting to ponder nonetheless.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the realestateexpedition.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on Sep 13, 2009

New 4 Percent Retirement Withdrawal Idea & Free Financial Planning Software

How Much You Can Spend in Retirement?

First Published Date: June 6, 2015

A retired financial planner in California, Bill Bengen, researched and came up with his 4 percent retirement rule. The New York Times recently published a detailed article on this, as his retirement 4 percent concept has attracted criticism both accepting and rejecting it.

Based on the assumption of that the retirees’ portfolio is made of stocks and bonds half half, Mr. Bengen’s 4 percent withdrawal concept survived every thirty year period from 1926.

However, there are other complex methods created by retirement analysts that call to withdraw from 2.85 percent to 4.95 percent, as the article points out.

Critics argues that Mr. Bengen’s method does not take account into various factors such as investment fees, tax rates, locations, etc. and should not apply to all retirees.

If you search online for various methods of retirement withdrawals, you will be astonished to see how many are there. The best course of action is not to go by any single idea you stumble into. As everyone’s situation is unique, it’s best to seek help and sit down with a qualified financial professional who can assess your own situation and create a plan that will suit your needs and lifestyle.

Free Financial Planning Software

Developed by Boston University economist Laurence Kotlikoff, ESPlannerBASIC Canada is free financial software that can calculate how much you can spend and save to sustain your living standard in retirement life. The planning tool takes consideration into other factors such as changing jobs, moving, having kids, pensions, etc. can affect your financial future. You can access this free tool here:

Vietnam Relaxes Foreign Property Rules

Vietnam Foreign Real Estate Rules

First Published Date: June 9, 2015

As Vietnam reaches its 40th anniversary from foreign retreat, it celebrates the historic moment by allowing foreign property ownership and further divulging into capitalism. Starting July 1st, foreigners with a valid residential visa and foreign companies are allowed to buy real estate in Vietnam.

In the past, foreigners married to Vietnamese citizens and foreign companies with special permission were able to buy real estate after going through a complicated government process. Although Vietnam has enjoyed steady economic growth between 5 to 10 percent in the past two decades, its foreign property ownership restriction has frustrated foreign businesses that wanted to acquire properties to expand. The new rules will bring fresh perspectives into the property market and accelerate foreign investments.

Under the new rules, foreigners will be allowed to own 30 percent of condos and 250 independent houses in a ward – an administrative area that can contain thousands of properties leased for 50 years. Many other Asian countries follow similar property rules, as more and more countries are opening up to foreigners and relaxing foreign property rules.

It is expected that there will be a surge of foreign property investors due to the new rules. Ho Chi Minh City and Dan Nang are two major areas of interest due to expat populations and availability of high-end condos and houses.

However, challenges still remain in Vietnam for foreigners to own property, like many other Asian countries. The requirement to have a valid visa and the local bureaucratic procedural cobwebs will still make many foreign investors reluctant to try the waters.