Lesson # 16 : Why Credit Cards Suck

'If the devil were alive he would probably have sold his soul to the credit card companies.'

It was like a collectable Pokemon Card for adults. Having more cards meant greater power. Greater power because one had more liquid cash than he could ever imagine. Adults and teenagers all over the world signed up for these so called Plastic money lured by the fancy logos and advertisements of Visa and MasterCard.

What people forgot was that the money they were borrowing was not actually theirs and that someday someone was going to pay it and that the banks need to make money and the only way they are going to be able to do that is by thrashing the consumer with high rates of interest compounded monthly.

As a result people's debt goes on piling up and in order to pay off the monthly debt of one card they take on another and so on. The chain goes on till their debt has exceeded their net worth and the day has been ruined by the greatest collectable card in world history.

Credit Cards today charge an average consumer 40-50% interest which through various hidden costs and clauses is actually legal. They also charge you for every purchase you make. A person pays 3.5% - 5% surcharge for every purchase made with a credit card.

For every cash with drawl there is a surcharge of roughly 1 %. Similarly, for every late payment a daily interest is charged in some cases.

Still want to get a Credit Card?

I would suggest you sell your soul to the Devil instead.

With a hope of no debt

Udit Sabharwal { On behalf of Doodle inc}

Lesson # 15 : Why A Business Works Better Than A Job

There are four sorts of people in this world. The first who get a job and continue doing the job for the remainder of their lives, the second who get a job then start of with their own business, the third who inherit their family business and the fourth who do absolutely nothing.

The reason why a business works better than a job is relatively simple.

Say work done by a person in the office is with an efficiency of  60%. The same work when done by the same person for himself would be in the range of 80 - 90 %. The reason is relatively simple. When all the money goes into your pocket you would rather work harder and get maximum utility from that work rather than work for someone else and get only a negligible share of your efforts.

Chance's of promotion in a job are relatively lower. Whereas the sky is the limit when it comes to a business. A business can grow every single day, every single hour, every single minute. As a result while the salary from a job is fixed the salary from business is often increasing and at an incredible rate.

The only problem perhaps is that of risk. But the fact is that probability of a failed business venture and the probability of losing a job are more or less in the same range.

So going over the pros and cons it is more than less obvious that a business is definitely better than a job.

Happy Business

Udit Sabharwal { On behalf of Doodle inc}