Negative Interest Rates Policy with examples

Need GDP growth? Make people addicted to shopping and saving less. Why? Because it’s the way how modern economy work. The GDP growth rate could not be achieved if citizens (tourists) don’t spend money. In last a few years interesting GDP growth stimulation used: negative interest rate policy. That means depositors must pay a fixed […]

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Aral Sea disaster: in 50 years entire sea gone

Aral Sea used to be 4th largest lake in the world but because of intensive cotton irrigation it’s vaporized. In 50 years entire sea gone. What used to be developed region turned into poverty and ecological disaster. Aral sea located between Uzbekistan and Kazakhstan in Central Asia. This is endorheic (landlocked) salt water lake. There […]

How to make customer spend more money?

Shopping became an important part of our life. When customer ready to spend money, it’s heaven for merchants. But in most cases companies use all possible tricks to make customers spend as much money as it possible and as often as it possible. Here’s a few tricks: Sales. Nothing drives higher sales than simple word […]

Planned obsolescence or build to fail items

How often do you buy items which supposed to last long but breaks fast? Most probably often, especially is it’s “only $9.99!buy now and save”. This happens because of built-in obsolescence. Planned obsolescence used by manufacturers in almost every product: product break fast, service became out-of-date, product with short trendy lifespan etc. Until 20th century […]

Influencers inspired shopping

If you are an influencer than this article not for you. Media personalities presented as talented people but in most cases it’s fake talents. Not much brainwork needed to post half-naked pictures. How many media personalities actually contributed to social development, science, improvement of human wellbeing? Not many. To be Instafamous need: naked a*s, food […]

How to follow personal budget?

How often do you actually stick to budget? Most probably not often but every time promise yourself to spend less next month. Traditional financial education preach about strict budget as a way to achieve financial satisfaction. But in real life counting of every cent spend create guilty feeling. My personal approach to family budget: Keep […]

Notification addiction

Internet browsing became important but not productive part of life. Biggest part of online time we spend on nonsense things which does not improve us. In order to change useless time spending we tell ourselves “no more watching YouTube or browsing Instagram”. But every time commitment fails. Why? Let’s take a look. Internet browsing is […]

Why online shopping sucks?

Temptation to buy more and more leads to accumulation of useless possessions. We buy more than what we need for happy life. Time when more possessions was necessary for survival gone but desire to accumulate items stronger than ever before. Useless purchases mostly done under influence of social media, TV, colleagues, friends. We want to […]

What is WeWork?

WeWork is commercial real estate company that provide real and virtual shared workspace. WeWork business model revolutionized office rental strategy by providing flexible contracts. Short contracts preferred by freelancers, small & new companies. But Wework also provide office space for big companies with 50+ employees. Established in 2010 by Adam Neumann & Miguel Mckelvey. Headquarter […]

Fast fashion impact on personal finance

Massive advertisement campaigns make us believe in need of low-priced & disposable clothes. Fast fashion presented as must-have but it wasn’t in this way half of the century ago. Tailoring was precise and individually fitted right until Amancio Ortega’s fast fashion idea. We are going to skip traditional history of fashion and discuss only about […]

How influencers make money?

Internet overloaded with new trends which only support manufacturers. By making people spend money on useless items. Most of the trends are micro trends which last for a few months or even weeks (fast-fashion). YouTube and Instagram packed with fashion influencers. They get paid for promotional videos in which “buy more, use this coupon to […]

What is USA national emergency?

Declaration of national emergency is more common than we think. First of all it’s extraordinary situation which sharply increase power of The President. Regulated by National Emergency Act (1976). On February 15 2019 new emergency declared by Mr Trump who surprised the world. But let’s take a look into history of emergency declaring (data from […]

Benefits of self education

Self education is based on discipline and self motivation. Considered more beneficial than traditional education. Because it allows to concentrate on most interesting subject. Main benefits : Ability to find relevant information. The information available in internet is not easy to find useful data. Focus in the age of distractions. We are bombarded by useless […]

Self education as investment

Self education is the only way to long term success. Traditional school education gives foundation, university education gives chance to earn just enough to survive till next paycheck. Only self education leads to dreamed achievements & lifestyle. Demand for college education comes with big price tag , which everyone can’t pay without loan. Self education […]

How to lose money from your savings account?

One of the worst but most used way is to store your wealth in cash (bank account). It’s wildly popular with heartbreaking consequences. Traditional way of saving money looks like this: Get paycheck Save 10-30% Deposit in bank on your saving account Get tiny interest rate Follow systematic investment plan Live below your standards Save […]

How American Express make money?

American Express Inc is financial services provider with worldwide presence. Established in 1850,headquarter in New York. IPO 1978 and listed in New York Stock Exchange. In Fortune 500 ranked number 86 with 181 billion in assets and around 120 million active cards. Price per share $99 (January 2019). Sources of revenue comes from 2 main […]

How banks make money on your debit card

Debit card is like plastic money without need to carry cash. Every time swipe, you use funds which already available. There are few ways how bank make money on every time debit card used. Banks earn less on debit cards compared to credit cards revenue. In table below comparison of debit vs credit cards parameters. […]

How banks make money on your credit card

Credit and debit cards look similar but influence differently on wealth utilisation. Credit cards issuing companies mastered a few main money making strategies: Interest rate applied on late payment Merchant interchange fees (mostly 2-5% of transaction value) Annual fees ($0 – $5000) Monthly fees ATM cash withdrawal (higher interest on default) Balance transfer Foreign transaction […]

Debit vs credit card basics

A few decades long discussion,over which type of card better fuelled by massive banks ads. For instance debit card better for your future financial wealth that credit card. Debit card technically is digitized form of cash which you already earned. Credit card is line of credit which you have to repay to avoid personal financial […]