If facebook goes buggy it will cause a world war…
When you apply for credit (eg loan/mortage/line of credit/credit card) the bank wil measure your 5Cs of Credit.
5Cs of Credit in a nutshell (no, there is no “C”uteness)
Measures if you’re borrowing too much or not. It measures the amount of debt and income you have. Are you able to comfortably pay back all debts?
Measures your savings, investments, and other assets that can help you pay back the loan.
Measures your track record with debt. Your credit score is checked. Your credit score is mainly determined by your credit history which show if there’s anything outstanding that went to collection or if you are slow at paying back or frequently skip payments. Check your credit history periodically to make sure you haven’t forgotten about anything.
This is like a backup if you end up failing to pay the loan – eg for a car loan your car is the security. The banks can take your car.
Lenders want to know why you are borrowing. A lender may be more likely to approve a loan with a specific purpose like for a house (mortgage) or a car, rather than for a loan that can be used for anything.
After I graduated from university, I lived back home and luckily I didn’t have to pay rent or pay back a student loan. So I just saved bonuses as cash. Looking back, I could’ve started investing in the stock market, but those concepts are new to me.
If I were a millennial now, with lots of student loan, if I get a lump sum cash (like a year end bonus), I would:
(1) Save it as cash if I don’t have any emergency savings
(2) Make a lump sum payment to a loan with a highest interest
(3) If there’s anything left over, invest
(4) Treat yourself with a cupcake
What did you do with your very first year end bonus?
I remember buying a very nice hat for my mom but she never wore it. I am the worst shopper.
A great tip by Lolly Daskal. Challenge yourself to raise the bar in whatever you are doing, whenever a random alarm goes off. For example, if you are talking to someone and the alarm goes off, focus on going deeper. Or, if you are working on a project, think of ways to streamline the process. Etc.
I want to try this ritual, but having trouble finding the right alarm app. Which one do you recommend?