Tag: financial

The benefits of credit cards, important notes, and how it saves you money?

The benefits of credit cards, important notes, and how it saves you money?

by MJMCM ♥ 0 Leave a Comment

A credit card is a convenient way to pay for your purchases, be it online or at physical stores that accept credit cards as payment.

All about credit card.
Image source, credit to: Photo library provided by Pexels.

Are credit cards bad?

A simple answer to this question is that it may be good or bad, depending on how you use it. If you have the discipline to just stay within your allowable budget, a credit card is a good friend for you. Likewise, it will be an enemy and will hurt you financially if you don’t use it responsibly. So take note, don’t use it if you can’t pay your expenses when the due date comes.

Benefits of having a credit card:

  • Convenient to use. You don’t need to carry along a huge amount of cash all the time. You’re not holding too many coins or bills in your hand. It’s also a good way to avoid the transmission of microorganisms.
  • You can track your expenses.
  • It can help you just in case there is an emergency that you need to pay for something, and you don’t have available cash to pay for it immediately. Furthermore, it can serve as a backup plan.
  • You enjoy the privilege of buying now, pay later. But take note, you need to pay to avoid charges.
  • You can redeem cash backs and rewards.
  • You can use it when you go abroad, some banks charge minimal to no extra fees.
  • It is not linked to your checking account, or any savings account, so no need to worry.

Important notes about credit cards:

  • You should only get a credit card if you can use it rightfully.
  • Keep a copy of your signed slip, every time you used it, to track how much money you’ve already charged off. Keep also the copy of your receipt, to have proof that you already made the payment for the previous billing cycle.
  • Always pay the full amount of your credit card statement every month, this is to avoid interests or any accumulated charges.
  • In a simple sense, use your credit card just like a simple debit card, the only thing is that you have to pay for it before the due date. Unlike the debit card that you have to deposit money for you to use as payment.
  • Check if your credit card charges an annual fee. Some banks offer zero annual fees for life. But some banks charge an annual fee. Don’t worry about the annual fees because banks usually waived them, just make sure that you are in good standing. Meaning, you paid every month, and you used the card for a certain accumulated purchase. So, the bank will determine it.
  • Don’t use your credit card to buy for your wants. Use it to buy for your needs. Like grocery items and other household essentials.

How can a credit card save you money?

  • A credit card can save you money from the cash backs, rewards, and points you earned from using it. You can also earn free travel and accommodation, depending on the credit card company promo. You can exchange your rewards for goods, services, or you can redeem them to help pay with your balance. Take note that credit card companies, or issuing banks, are different. So, you have to check and compare first the privileges that you can get before choosing one.
Passive income ideas that you can try to boost your earnings!

Passive income ideas that you can try to boost your earnings!

by MJMCM ♥ 0 Leave a Comment

Are you looking for a passive income which can increase your earning potential? Well this post is for you!

Before we tackle about the possible passive income that you can venture in, let me give first a simple definitions of passive income.

Passive income ideas
Image source: Photo library, provided by Pexels

So, passive income is a form of income ideas wherein you don’t need to put a lot of effort working for it. While you are sleeping or awake, you are making money! While you are sitting or roaming around, you are making money! When you are spending money for your essential needs, you are complacent that something will come back to you in return because you have a passive income. But always take note, that a little effort and managing abilities should accompany it, in order for it to be successful.

Here are the list of passive income ideas that you can do to earn additional money!

Digital passive income:

  • Digital products- includes selling of product virtually. No physical products involved. Examples are: selling of E-books such as online courses and designs. These products will cost only your time in producing it, and the good thing is that you can sell it unlimited. You can sell it to your social media accounts, website, or blogs. When someone buys it, you earn money instantly!
  • Affiliate marketing- done by promoting a company’s products and services. For you to start on this, you have to look for a legitimate company who offers affiliate program. You need to apply to this company by signing up to their form, submit it and wait for their approval. If ever they approve your application, you can now start with displaying their products to your social media accounts or blogs. If ever someone buys through your affiliate link, you will gain commissions.
  • Creating a blog- this is suitable for passionate bloggers, writers or content creators. To those who love to share their ideas and knowledge about anything that interests them. You can create a blog through WordPress. You can start with their free plan, and choose a plan which is suitable to your need later on. How can you earn a passive income from blogging? So, you can earn here by attaching your digital products, affiliate marketing, and displaying of paid ads or banners. But before you can do all of these, you have to grow your blog first to widen your reach.

Physical passive income:

  • Rental income- if you have a space in your house that you are not using- you can rent it out to other people, unoccupied property like land- you can lease it to business minded individuals. Car rental and even renting out your modernized equipment could bring you some amount of money!
  • Lending- you can earn through this passive income by interest basis. You let someone borrow money from you, and then that person will pay an interest in return. You can calculate it monthly or annually, depending on what you have agreed. It can also include some risk such as, unpaid interests and principal, or inability of your client to pay on time. But, it can be profitable if you have good payers, so you have to choose the right ones.

Bank related passive income:

Note: Do not transact with individuals who are not legal employees of a bank. Before entering to these, you should be able to understand the ups and downs that may occur.

  • Stock trading and stock dividends- done through stock trading companies or banks. Stock trading means that you buy a share of a company. The trick here is to buy while the market is down and sell it when the market is high. While waiting for your share to grow and give you some gains, you can also benefit from the stock dividends that the company will distribute to their loyal shareholders. This passive income is suitable for risk-takers and to those who can wait and can understand the trading process. Because there is a possibility that your shares will decrease, and you are unlikely to predict when it will go up. Before you can venture to this, you must prepare an emergency fund for unexpected expenses. The good thing is that it can give a good amount of possible earnings!
  • High-yielding savings account- these are available and offered by banks. This passive income is suitable for those who are conservative in terms of putting their money somewhere. Your money will grow while saving it in the bank.
  • UITF, or unit investment trust fund- available through banks. They are also a risky venture, but the good thing is that it can also earn you ample money if you are just willing to take the risk and can wait. Once again, just like the stock trading, you should also prepare your finances for possible emergency expenses that may occur.