Lessons To Learn From The Financial Crisis

The most obvious lesson from this crisis is the fact that banks have been lending excessively and irresponsibly

First Published Date: July 12, 2009

The credit-led financial crisis in which the world still languishes at present carries some quite profound lessons for us all, much though there will be people queuing up to say that they saw it all coming all along. The undeniable truth is that the world has been hit by this crisis in a way that has left few people untouched – and if it could happen at a time when we are supposed to know more about finance, and about everything, than we all knew a decade or two ago, then what is to stop it happening again? Well, this is what our government are looking at, and along with them the governments of several other countries. Will this put an end to future recessions? Not indefinitely, but we’ll see how long it holds them off.

There were numerous possible reactions when this whole house of cards came crashing down. One was schadenfreude, and it was much in evidence from people who had held on to their jobs and full pay, directed towards those who had made their living from the financial sector. This in all honesty was completely unhelpful – even though the whole crisis was down in some part to the banks, banking policy is dictated not by the guys at the bottom who lost their jobs, but by the people at the top who miraculously survived. Another possible reaction would be to look at this crisis and see what we can learn from it. If we can learn from our mistakes, we can stop them happening in the future, can’t we? Or is it that we will know them when we make them again?

The most obvious lesson from this crisis is the fact that banks have been lending excessively, and irresponsibly, to people whose hopes of actually maintaining the payments were always flimsy. It seems absurd now that the banks could play so free and easy with their money. Was a crisis like this not completely inevitable in the circumstances? The banks have promised that the lesson is learned in any case, and it is noticeable that they have been less keen to lend to anyone recently. Is that really a sign that they have learned the lesson, though, or a sign of over-correction? Who knows?

As people, it would be hoped that we have learned that credit is like a firework – to be treated with caution, but capable of facilitating wonderful things if handled correctly. It is tempting to use borrowing to fund our dreams and our pleasures, but there is always the danger that it could lead to a situation that no-one really enjoys. It shouldn’t need to be a matter of advice – spending money you can’t really afford will lead to bad things! – but if the message needs to be reinforced, just look at the newspapers every day. Do we really want to keep reading about companies going to the wall? Apart from anything else, that is becoming very tedious. Let’s start making good news.

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 July 12, 2009.

This Is How I Save $1,500 to $5,000 Yearly

My Daily Bike Commute

First Published Date: August 8, 2015

One of the easiest ways to money on an ongoing basis is to live near where you work. Living close to work, however, saves you something else more precious than money and can’t be measured or replaced by anything else: time. Today, I will only look at the monetary aspect of living close to work.

I live in downtown Toronto, very close to my work. I have the option to walk, bike, or take a streetcar to work. What I do, instead of walking 100 percent, is use Toronto’s city bike sharing system Bike Share Toronto to cover part of my commute and walk to cover the rest. When it rains or snows heavily, I either walk or take a TTC street car.

By living close to work, I save a staggering $1,500 to $5,000 annually. These costs are very conservative and the actual savings can be even higher than my estimates. Here are my breakdowns:

$1,500 – Assuming I am using TTC and buying a monthly pass, which is nearly $130 a month.

$5,000 – Assuming I am using my own car. $5,000 includes monthly payment for car, insurance. However, to keep things simple, I am not including other costs that are involved having a car such as gas, parking, maintenance, tickets, etc.

As you can see, my $1,500 to $5,000 yearly estimates are actually lower than real costs someone could have incurred by driving or taking public transit to work in Toronto.

Living close to work to save money and time is great, but I understand that this is not possible for everyone for various reasons. There is no need to be discouraged if you are one of those. There are various other practical and smart tips to save money in my book

Money Hacks: How Small Changes Can Save Big Money

And there is no reason why you can’t save at least $100 a month applying what I have discussed in this book. You can download this book from Amazon (the link is on the very top right) and start saving money today.

The Ten Tallest Buildings in the World

The Ten Tallest Skyscrapers In The World

First Published Date : Jan 29, 2009

For many years the Empire State Building in New York, USA was the unrivalled nominee for being the tallest building in the world. Since this building was completed in 1931, at 381 meters high, technology would have to advance for nearly seven decades before its height could be surpassed. In 1996, Shun Hing Square in Shenzhen, China became the world’s tallest building, at 384 meters.

Whilst there are many tall buildings currently under construction, in terms of actual completed tall buildings which are both completed and still in existence (for example the World Trade Centre is no longer on the list), and taller than the Shun Hing Square, there are several, which have displaced the Empire State Building to now ranking 14th on the list, followed by the Shun Hing Square in Shenzhen at number 13.

The Two International Finance Centre in Hong Kong, at number 10, is followed by the Jin Mao Building which is next at number 9 and the 8th tallest building is the Guangzhou West Tower, Guangzhou in China.

The 7th tallest building in the world is the Wills (formerly Sears) Tower in Chicago. Number 6 on the list is the Greenland Financial Centre in Nanjing.

The Petronas Towers, Kuala Lumpur, Malaysia, follow at numbers 4 and 5, and then there is the Shanghai World Financial Centre, China, placed at number 3. The previous tallest building in the world was the Taipei 101 Tower in Taipei, Taiwan and now this is surpassed by the re-named Burj Dubai – making it the tallest building in the world – the Burj Kalifa, in Dubai.

There are criteria which must be met for being the highest building in the world which is not just a matter of constructing a huge antenna on top of the roof to gain that extra size. According to the Council of Tall Buildings and Urban Habitat, towers per se do not count, unless they also have floors so as to qualify them to be classified as buildings. A building such as the Taipei Tower is named as a tower but is still a building for ranking purposes because of its design and intended use as a commercial, residential or manufacturing building which is actually occupied. Height is measured from the ground to the structural highest point of the roof – spires are included but you cannot add into the count such things as flag poles or radio masts or antenna.

Heights and rankings of tall buildings are often disputed, and other lists which are informed from web based data may vary from the official listing above, which has been made up from data obtained by the Council. There are many other buildings around the world still in process of construction but they do not form part of the list because to meet Council requirements – a building must be “topped out”. Burj Kalifa is 828 meters high which tops the Empire State by just over double its size – the amenities of the buildings today are far in advance of the original pioneer development – the Empire State Building.

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 Jan 29, 2009.

The American Express Gold Rewards card: Should You Keep It?

The American Express Gold Rewards Card Review

First Published Date : August 12, 2015

The American Express Gold Rewards card is a flexible highbred travel rewards credit card that lets you earn American Express points for everyday purchases that can be used towards eligible travel costs without any blackout periods or restrictions.

The Cost

Annual Fee = $150. Additional cards = $0

Minimum annual income required = $20,000

Rewards Points Snapshot

– Earn 2 points for every $1 spent at eligible gas stations, grocery stores and drugstores in Canada.

– Earn 2 points for every $1 spent on eligible travel purchases.

– Earn 1 point for every $1 spent on everything else.

First Time Bonus

A 25,000-point (valued $550 or more) welcome bonus when you spend $500 within 3 months. Also, the annual fee is waived for the first year.

Anniversary Bonus

None.

Features & Benefits

– Book any travel purchases with this card and use points to pay them when appear on statement.

– This is a charge card. Balance has to be paid in full every month.

– Transfer points to Aeroplan or AVIOS at 1:1

– Emergency Medical Insurance (15 days<65, none>65 or older, Amount: 5 M/per person).

– Travel Accident Insurance (Up to $500,000 CAD).

– Auto Rental Theft and Collision/Loss Damage Insurance ((maximum $85,00)

– Trip Interruption Insurance ($1,500 each, maximum $6,000).

– Flight Delay Insurance (After 4 hrs, maximum $500 per occurrence).

– Lost Luggage (maximum $500)

– Hotel/Motel Burglary (maximum $500)

– Extended Warranty Insurance

– Purchase Security

What’s Missing

Some of the important benefits this card does not offer:

– Price Protection Insurance

– Trip Cancellation Insurance
– No Concierge services

My Take

Although the American Express Gold Rewards card is a highbred card that charges a high $150 annual fee, it is missing some important elements of insurance and services you would expect from a $150 per year credit card, and it has no anniversary bonus to consider to add it to your credit card portfolio.

For a cheaper annual fee, for example $120 per year, you will find many other cards that offer features that the American Express Gold Rewards card is missing, such as Trip Cancellation insurance, Concierge service, etc., and you will find more value for your dollar.

I personally do not hold this card as of this writing and I’m planning not to hold it after its 1st year even if I get this card in the future.

However, a point worth mentioning is that this card earns 2 points for every $1spent at gas stations, grocery stores and drugstores and then lets you convert them to Aeroplan points. This makes it a high Aeroplan earner (2 Aeroplan points for each dollar) comparing any other cards.

Disclosure: Information provided here may not be accurate and no longer valid. The mentioned card provider is not related to A Dawn Journal and neither monitor this site nor responsible for any inaccurate information. Contact the card company directly for accurate and updated information. A Dawn Journal or my YouTube Channel are not compensated by or affiliated with any credit card companies. All credit card articles are 100% unbiased and honest.

How To Give Your Children The Best Start In Life Financially

Teach Your Kids Good Money Habits

First Published Date: July 19, 2009

As the old saying goes “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.” The same, or at least similar, applies to giving your children the best start in life financially. If your children are forever coming to you asking for money, it can be very hard not to give them a few dollars, especially if they have been well-behaved recently. However, this is something that should never become a habit. After all, you had to learn at some point that you cannot keep relying on other people. The message is that if you can save some of what you get from time to time, and find a (legitimate)  way of making to money it will stand you in much better stead for the future.

This is not a case of advising people to never give their children money. It is true that your children need to learn the value of money, but this is no more likely to be learned by giving them nothing than it is if you give them money every time they ask. All that you guarantee by withholding money every time is that they will one day start making money for themselves and rebel against everything you told them by spending like an heiress in a street full of boutiques. There is a sensible balance to be struck. If your child has a good reason for asking for the money, that scores a point. If they are not asking for much, that scores another. If they really do not ask all that often, then they deserve another point.

You can come up with your own points system, but do your best to make it fair while not being excessively flimsy. How likely is it that a child who knows they will get everything handed to them will grow up understanding that money needs to be earned. The old saying “Money doesn’t grow on trees” may be irritating, but it is also true. It has to come from somewhere, so it is worth encouraging your child – once they are old enough – to get a job which they can do on weekends earning just enough to pay for their leisure pursuits. This doesn’t mean you need to stop paying their way – it is even better if you top up what they earn with a little from your own pocket to show them that good behaviour is well rewarded.

There may seem to be some madness in the above stratagem, but rest assured there is method to it. Giving your child a decent appreciation of the benefits of working for money, a recognition that they cannot rely on someone to just hand it to them, and yet the reassurance that you will not turn them down if they really need help, is the strongest way of reinforcing the lessons of good financial behaviour, and your child will be more likely to thrive financially in times to come.

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 July 19, 2009.