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Thursday, February 28, 2013

Don’t Buy Thing Just Because of A “SALE!” Sign

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How often do you buy things just because they are on SALE?

We often buy things that we do not need or even want just because we see the “SALE” sign. We simply do not want to pass up an opportunity to get something at a bargain price.

We really need to remind ourselves the next time we see a “SALE” sign that:

If we buy something that we do not need, no matter how cheap it is, it will still cost us money. If we do not buy it, it will cost nothing, zip, zero!

 

Learn and Grow!

Inge Santoso, B. Com, CFP®

Wednesday, February 27, 2013

Regular Maintenance of Bank Accounts

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It’s not just our house that requires regular maintenance, our bank accounts also need regular maintenance, preferably once a month.

What do we need to do each month?

1. Print your bank books or file your bank statements

Ideally, we should get our book printed at least once a month, so that we can have all the details of every transactions printed. Otherwise, some banks have a policy of printing a lump sum amount over the missing period although you can still get each individual transaction printed if you are willing to pay additional fee.

If the bank sends the bank statement to you, then you need to prepare a folder to keep these statements. If you have several bank accounts, please have separate folders so that you can easily find what you need in the future.

If you have a dormant account, you still have to keep the record up to date. If it’s too troublesome, then perhaps closing the account is an option.

2. Credit card statement

If you have credit cards, then when you receive your credit card statements, please check all the transactions and make sure that they are accurate. If you keep records of all your credit card purchases, then you can compare them to check. Remember that they bank is not always right, sometimes they do make mistakes.

Some banks send credit card statements over email. You can either flag, file or print them. Make sure that you set a reminder to pay before the due date. I usually print the statement and keep the proof of payment together with each month’s statement.

3. Mutual fund and investment records

Please keep your mutual fund or investment records organized in folders. If you have a purchase during the month, please check whether the statement accurately records your purchase.

4. ATM cards, bank books

Some people have many bank accounts and not necessarily use all of them for everyday transactions. Make sure that you keep the ATM cards and bank books in a safe place and remember where you put it. Some people keep them so safe until it is also safe from them because they can’t remember where they keep them. Smile

 

What other things that you do to maintain your account?

Please share in the comments.

 

Learn and Grow!

Inge Santoso, B. Com, CFP®

It’s Not ‘Spending’ Problem but ‘Paying For It’ Problem

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It's easy to spend money, especially buying things on credit. When the bill comes, we may have a problem paying for them if we are not in control of our money. Are you in control? #moneymastery

Inge Santoso, B. Com, CFP®

Wednesday, February 6, 2013

The Right Not to Buy

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One of my nephew’s sitters went to a baby shop to buy some milk. While she was in the store, she saw a butterfly pin. She thought that it was cheap for Rp4,500 (USD0.5) so she brought it to the cashier. When the cashier scanned the barcode, it was not Rp4,500 but Rp14,500, more than three times the price! She was feeling embarrassed to say no and she decided to pay for the pin.

If this happened to you, what would you have done?

  1. Pay for it, or
  2. Cancel the purchase

What if the price is Rp45,000 and Rp145,000?

Perhaps it’s easier to cancel the purchase when the amount is significantly bigger. Rp10,000 is cheap to save your face, but Rp100,000? Is it worth it?

I remembered my own story when I was a teenager studying in Australia. National Geographic store recently opened and I went there to check it out. I saw a stethoscope and I was considering of buying it. The price of the stethoscope was quite expensive considering the amount of pocket money I had. While I was thinking whether to buy it, taking it out of the box to see whether it was of good quality and the price did reflect the value, one of the store attendant came to me. I thought perhaps I was not allowed to take it out of the box, so he came to warn me. When he came, he asked me with what I heard was a demeaning tone, “Are you going to buy it? Can you afford to buy it?” At that moment, my ego went nuts. I thought nobody should look down on me like that, so with emotions running high, I told him, “Yes, I will buy it.” I went to the cashier and took almost all the money that I had in my wallet to pay for it. After I went home, I had a big buyer’s remorse!

At that moment I learned a lesson, to be unafraid to cancel a purchase and that I have the right not to buy and I won’t let the store attendant to “bully” me into buying something.  

Have you had a similar experience? What have you learned? Please share in the comments.

Learn and Grow!

Inge Santoso, B. Com, CFP®