Tuesday, July 17, 2007

Yearly Bonuses and Credit Cards

Public Servant should be thankful that finally their prayers of getting their annual bonuses in December rather than in January had been answered. His Majesty happily consented and inform his subjects through his 61st B'day's Titah last Sunday. I am truly in favor of this decision and I understand the predicament that the public servant face every year. Parents are the most grateful of the lot as they now have that extra cash to buy their children's school books and stuff before the new term begins. Before this it is sad to hear that some parents have to use their children's "Duit Raya" to buy those things that I mention above.

But do you know that the scenario of not having money at the right time, although you know that money will come in buckets load in the following month, is a good reason why you have to own a credit card. This is where the beauty of having this so called plastic cash kicks in. A wise thing to do when buying school books in December (prior to the sultan's titah) is to charge everything with our credit card and taking the advantage of the 40 days of no interest charge on our purchase, by doing so and with the right timing, we will definitely can settle our debts in January as soon as the yearly bonuses are being paid.

Sadly, owning a credit card nowadays is badly interpreted as having an imaginary cash that can be paid by installment plus whatever interest imposed. One should remember that to tap the wonders and flexibility of a credit card one should always realise that whatever amount charge to the credit card must be backed by real cash either from the next month's salary or from their personal savings. Anyway, from this year onwards, December will be a "happening" month and since it coincide with the school holidays we can just imagine how huge the traffic jams will be at the Shopping Malls, Fancy Restaurants, Car Accessories Shops, and off course, the infamous Kuala Lurah and Sungai Tujuh.


wadooo said...

Berbelanjalah dengan bijak. In english, Spend The Money Smartly.

LSM said...

I think that if people don't have money in time for a known expense (e.g. buying books at the start of the school term), then maybe they'd better think about budgeting.

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