Cars and Loans

Did you have a car? How long have you had it? In this chance, I will give my opinion about the case application.

case application

Angelina drives a seven-year-old car that recently needed $1,300 in repairs. Each day, she drives 46 miles to and from her job. What action should she take to decide if she should (1) keep this car, (2) buy a newer used car, or (3) buy a new car?

Her total income is $2,700 monthly, consider the following daily expenses that she has:

-Flexible expenses  : $ 750

-Fixed expenses  : $ 250

By considering the income and the daily expenses that was earned by Angelina, I think she should buy a newer used car. Each day, she drives 46 miles so it's about 16,800 miles a year. Generally, 15,000 miles a year is considered an average number of miles per year. Although Angelina's mileage is slightly above average, but that's not too problem. Angelina should pay her car repairs about $1,300 and her total daily expenses about $1,000, so she should spending her money about $2,300 per month. Her total income is $2,700 monthly, while her expenses is about $2,300 monthly, so she only has the rest of the money around $400 monthly. In this case, we know that the biggest expenses is on the repair of Angelina's car which is caused by a car that is too long used. Ongoing maintenance and major repairs become bigger and bigger expenses as a car gets older, so I think Angelina doesn't need to keep her car any longer if she wants to save money. Then, why should Angelina buy a newer used car than buy a new car? I think about the depreciation. Example, Angelina buy a new car for $50,000 and sell it four years later for $25,000. The car has cost Angelina $25,000 in depreciation. Whereas if she buy a newer used car (let’s say Angelina buy the same car, but it’s four years old when she buy it), so she could buy the car for $25,000. Three years later Angelina could sell it for $20,000. So the used car depreciation cost Angelina only $5,000. With this example, wouldn't it be more profitable if Angelina bought a newer used car? And then if her buy a newer used car (old car), she can save on initial costs, insurance costs, etc, so she can minimize the cost of her spending.

Maybe we often feel confused whether to repair and keep our car or replace it with the new one. For the best solution, we should take into consideration a vehicle’s current condition and its history of reliability when deciding whether to keep it running or replace it. If a car looks good and has been maintained meticulously, having a mechanical problem fixed now might prolong its life for tens of thousands of miles down the road. However, if the car is damaged continuously, I think it would be better to replace it with a new one (whether it's a new car or a used car) to avoid excessive spending.🚗💨

Credit Cards

Do you have a credit card? Have you used it to make certain transactions? With the credit card, you can make payment without using debit card from your wallet. In this chance, I will give my opinion about the case application.

case application

Jack uses his credit card for almost all purchases. He charges gas purchases, clothing, food, and other living expenses. What is your opinion of this money management habit?

You can use credit cards for almost every purchases. But, it's not always an easy choice. It's better to arrange spending when using credit card. Having a credit card to use in case of an emergency sounds like a good idea. In this case, if Jack using credit cards wisely so he will paying off his balances in full every single month, that's no matter. But if he don't pay off his card every month, he have to pay interest on the amount he owe. So, if Jack's habit result in overspending and paying more, I think he should be reduce his habit to avoid the possibility of greater losses.

So, I think using credit cards isn't problem, as long as we should be able to control our expenses and pay the credit cards on the due date. 💰

Making Money

What's the first things that comes to your mind when you hear about "making money"? Does it printing money on a machine? I also thought about it before haha. If you make money, you obtain money by earning it or by making a profit. But, have you ever thought how to getting money? We can earn money in many ways, such as by working at a company (working for someone else), do online market trading, do a part-time job, etc. As a college student, I want to start drop-shipping by using a platform like Shoope, Tokopedia, Bukalapak, etc. If I do drop-shipping business, I think that's low starting cost and don't require much money because since I don’t stock the product, I don’t pay for it until it’s sold. And I think that's not a difficult job for me (while studying as a student), because I don't need to do stock or delivery process to buyer. As a drop shipper, I just need to promote supplier products on website or social media (instagram, twitter, facebook). If there any buyers who want to order, I will forward it to supplier. That's ought to be simple, right? But I'm not sure about it. Isn't that way too easy to earn money? Although it looks like an easy job, but there must be a downside, for example is when the other dropshipper supplying the same products as me. Basically, you will get your success when you believe in yourself and hard work, no matter what kind of work that you have. I wish you good luck and success as you pursue your dream!👊

Making Decision

Have you ever made a decision in your life? What is the most difficult and impressive decision you have ever made? To choose a college major, I think that was the toughest decision I've ever made before. In college, I want to learn both of theory and math. So, I have two alternatives, that is Management Major and Accounting Major. If I choose Management Major, I think that's a lot of theory, but with that theory I can learn to manage something (ex: learn better ways to manage my time) ,and I can expanding my business skills. If I choose Accounting Major, there is a countins activities but difficult in writing the thesis (people said). In the end, I choose Management Major because in the fact there's not too much theory and that major talk about theory and math. I think that's not too bad. I feel comfortable with this situation, especially some people said that people who graduated from Management Major will be easy to get a job.

I think many factors influence decision making. But in the end, you must make your own choices in the light of your own wisdom, so you can making the best choices for yourself. Good luck with your future choices!xD

The Purpose of this Blog

Hello, guys. My name is Cindy Johamsa. I'm currently a student at the University of Musi Charitas Catholic in Palembang. I just started a blog and it was my first post. In this post, I want to tell you guys that I will use this blog for my english lessons. So, I will share about lessons which have been given from my lecturer, or maybe I just sharing about my personal activity related to that lessons, it depends on my mood haha. Fyi, I will post once a week. I hope my blog will be helpful for all of you. God Bless Us.