LebGeeks

potato

Member

What choices in your life that you made are worth sharing ?

As we know our country has many difficulties. Could you share with us some tips/steps that can perhaps make it less difficult.

Xsever

Member

Re: What choices in your life that you made are worth sharing ?

My spending habits are a function of my income and not a function of the lifestyle I want/wish to have. This allows me to save enough so that I never have to complain/spend my salary before the end of the month.

Only use debt to buy a house. Any other debt (car, personal etc...) is a debt you don't need if you don't have enough savings to buy it.

Aly

Member

Re: What choices in your life that you made are worth sharing ?

Only use debt to buy a house. Any other debt (car, personal etc...) is a debt you don't need if you don't have enough savings to buy it.

This is exactly what i am doing as well, the only debt i have is my housing loan, I am also in the process of saving a good amount of money, and convert it to a term deposit in order to cover (almost) as much as possible my monthly house loan bill.
No personal loans, no car loans, no credit card debt and so far i am doing well, i hope that i can still keep these habits when i get married though.

Xsever

Member

Re: What choices in your life that you made are worth sharing ?

Only use debt to buy a house. Any other debt (car, personal etc...) is a debt you don't need if you don't have enough savings to buy it.

This is exactly what i am doing as well, the only debt i have is my housing loan, I am also in the process of saving a good amount of money, and convert it to a term deposit in order to cover (almost) as much as possible my monthly house loan bill.
No personal loans, no car loans, no credit card debt and so far i am doing well, i hope that i can still keep these habits when i get married though.

And your housing loan per month should never exceed 28-30% of your monthly income. Beyond that and you basically bought a house you cannot afford. With 30% max, the remaining 70% should be enough for you to spend on the rest of the expenses and still save and put money aside.

rolf

Member

Re: What choices in your life that you made are worth sharing ?

Speak up. One thing I have noticed with that people can act like asses, driving on the left, cutting into queues.
People react in different ways, but usually you are better off voicing it.
Of course, politely.

Last edited by rolf (June 16 2018)

sero

Member

Re: What choices in your life that you made are worth sharing ?

1- do a nature related activity at least once a week. I go hiking every Sunday which really helps in boosting my weekly mood
2- play sports! I recommend squash. it gets the anger and stress out of you (betfesh l khele2!)
3- stop driving to work (if its feasible for you). My apartment is 15 min away from work. I go there everyday with Uber/Careem. According to my calculations (if you include parking,gas,car maintenance, car depreciation...) a taxi everyday is actually cheaper! I've been doing this since 2 years and it really helped me staying positive.

These tips helped me be a more positive/energetic person. It had direct effect on my work performance, Hence I got better raises ==> better income.

elserge82

Member

Re: What choices in your life that you made are worth sharing ?

Only use debt to buy a house. Any other debt (car, personal etc...) is a debt you don't need if you don't have enough savings to buy it.

This is exactly what i am doing as well, the only debt i have is my housing loan, I am also in the process of saving a good amount of money, and convert it to a term deposit in order to cover (almost) as much as possible my monthly house loan bill.
No personal loans, no car loans, no credit card debt and so far i am doing well, i hope that i can still keep these habits when i get married though.

I almost completely agree with you but who said don't use credit cards?  Instead I would say use 1 CC wisely.
I always use CC. This way you gain a month of interest not to mention the cash back.
Limit you CC to 1 month expense minus the cash or liquidity needed in your life style.(for small payments less than 10 000)
better to have your CC in LBP. for not losing money with the conversion.
Always close your statement at the end of the month..

rolf

Member

Re: What choices in your life that you made are worth sharing ?

Debit cards are convenient, better than carrying cash and coins and they spare you a trip to the ATM.
You can also look at your bank statement and know exactly where your money has gone.

When I was living in Europe I could go to the supermarket and buy a pack of chewing gum with my card.
Big chains and banks also like it because they can collect data about you and study your behavior.
It also encourages spending behavior. You can buy something as long as you have cash in your account and the card in your pocket. Insert the card, insert your code, and it's yours. It's like magic, you don't even feel like you spent any money. Yay for the economy.

In Lebanon, I would go to the supermarket and if I'm buying for less than $10 the cashier would say we don't take cards, as if I deserved to have a problem because I tried to use my card.
Well at least I know that my buying habits are not recorded and tracked.

Credit card have the added advantage of providing a credit line.

This is not a tip, sorry, I just wanted to share my opinion.

Last edited by rolf (June 18 2018)

AVOlio

Member

Re: What choices in your life that you made are worth sharing ?

Debit cards are convenient, better than carrying cash and coins and they spare you a trip to the ATM.
You can also look at your bank statement and know exactly where your money has gone.

When I was living in Europe I could go to the supermarket and buy a pack of chewing gum with my card.
Big chains and banks also like it because they can collect data about you and study your behavior.
It also encourages spending behavior. You can buy something as long as you have cash in your account and the card in your pocket. Insert the card, insert your code, and it's yours. It's like magic, you don't even feel like you spent any money. Yay for the economy.

In Lebanon, I would go to the supermarket and if I'm buying for less than $10 the cashier would say we don't take cards, as if I deserved to have a problem because I tried to use my card.
Well at least I know that my buying habits are not recorded and tracked.

Credit card have the added advantage of providing a credit line.

This is not a tip, sorry, I just wanted to share my opinion.

They won't accept cards for less than 10$ because I think the credit card firm that links the supermarket (or any other shop) to the bank takes a certain % out or every credit card transaction made. And if the transaction is less than 10$ the managers usually tell the cashiers not to accept it. Some even say it's not possible to do it  but it really is, for as low as 1$.

Can someone explain me please how credit cards work?

Aly

Member

Re: What choices in your life that you made are worth sharing ?

Only use debt to buy a house. Any other debt (car, personal etc...) is a debt you don't need if you don't have enough savings to buy it.

This is exactly what i am doing as well, the only debt i have is my housing loan, I am also in the process of saving a good amount of money, and convert it to a term deposit in order to cover (almost) as much as possible my monthly house loan bill.
No personal loans, no car loans, no credit card debt and so far i am doing well, i hope that i can still keep these habits when i get married though.

I almost completely agree with you but who said don't use credit cards?  Instead I would say use 1 CC wisely.
I always use CC. This way you gain a month of interest not to mention the cash back.
Limit you CC to 1 month expense minus the cash or liquidity needed in your life style.(for small payments less than 10 000)
better to have your CC in LBP. for not losing money with the conversion.
Always close your statement at the end of the month..

No, no man, i didnt mean not to have or use a credit card at all, in fact i do have a cc and i use it all the time, but i always settle the amount i have used within the bill cycle period and never accumulate any cc debt (which as a result is subject to intrest by the bank).
Nowadays it is very hard not to have a credit card.

rolf

Member

Re: What choices in your life that you made are worth sharing ?

They won't accept cards for less than 10$ because I think the credit card firm that links the supermarket (or any other shop) to the bank takes a certain % out or every credit card transaction made.

Can someone explain me please how credit cards work?

I think it's a fixed fee per transaction + a percentage, like it is for online payment providers. If it was only a percentage it would not make a difference if it's $1 or $10 but with a fixed fee it becomes unlucrative for small amounts.

How they work, as I understand, is that the card company issues a capture order on the amount of money so the bank "captures" the money from you account and at a later date it will be transformed into a "charge" and transferred to the account of the beneficiary. The seller can also cancel the capture before it becomes a charge.

There is also an amount of days (a few weeks I think) during which a "chargeback" can be issued to revert the transaction, so that any fraud, erroneous transaction, etc. can be corrected. It can be initiated by the seller or by the bank.

This is why they ask you to sign on receipts, sometimes. Because you can go to the bank and dispute a transaction, claim that it is fraud or that you were not delivered the goods or services which you paid for. In this case, the seller can show that you signed on the receipt and it will protect them from a chargeback.

The card authenticates you as the owner of the account it is connected to, using the information that is printed on it + the PIN code, or cryptographic information on the chip or the magnetic strip (I'm guessing), and as such authorizes you to initiate charges against your account.

Maybe someone with better knowledge about the details can a more detailed answer.

Last edited by rolf (June 18 2018)

nas93

Member

Re: What choices in your life that you made are worth sharing ?

Disagree with the credit aspect, if you could get a loan on anything (car, house, appliances, services) you should because of the time value of money. You could easily offset the interest you pay on your loan by having that money in the bank or investing in a treasury security (if you're a risk avertor). This is considering that you are in control on your credit card payments.
Credit is essential if you're serious about making money.

elserge82

Member

Re: What choices in your life that you made are worth sharing ?

From a security perspective, It is always better to have a Credit Card over a Debit Card, not to mention the 1 month interest value.
I only use the debit card for cash deposit.

Mero55

Member

Re: What choices in your life that you made are worth sharing ?

As we know our country has many difficulties. Could you share with us some tips/steps that can perhaps make it less difficult.

Hey!

Though I'm not 100% committed to this habit, I've found it extremely beneficial to journal or write/type things I think of, either right in the moment or at the end of my day.
Besides the help it gives you in documenting projects, it gives you time to reflect on your day, the choices you've made and observations you've had.

(Cool name btw)

xterm

Moderator

Re: What choices in your life that you made are worth sharing ?

From a moral perspective:

1- I decided to be completely honest with people irrespective on whether it'll hurt their feelings. I get to speak my mind and sleep at ease.
2- I decided to avoid any instance of شو وقفت عليي؟. Follow the rules everywhere irrespective of whether the rest are not. it generally comes at a price (additional wait, additional cost), but at least I'm at ease of mind and a clear conscience.
3- I stopped relying on others to get me out of troubles. I decided to be responsible and own up to my mistakes no matter the cost; Learn from them and move on.

From a financial perspective, I want to amend what Xsever said; Your total monthly loan settlement should not exceed 33% of your monthly income, that is in fact a policy in BDL. I believe it's fine to get any kind of loan you want (house, car, computers, etc...) as long as you're still sub 33% in total. Resist the temptation to go beyond this EVEN IF, the bank actually allows you to do so (Yes, they do sometimes).

elserge82

Member

Re: What choices in your life that you made are worth sharing ?

I use money manager ex app or called MMex. for better visibility. (Money wise for sure)

Guitaret

Member

Re: What choices in your life that you made are worth sharing ?

1- I decided to be completely honest with people irrespective on whether it'll hurt their feelings. I get to speak my mind and sleep at ease.
.

I am always tempted to integrated this practice in my life but could not be at ease to do so, not sure why, maybe I am afraid of how to react if people took it the wrong way.

Please do tell what people/scenarios you are talking about: Is it with family and people around you? With neighbors? The smoking guy on the bus? The noisy couple next to you in a movie theater? Moreover, does it include positive feeds and complements that may be misunderstood on intention basis?

Thanks

xterm

Moderator

Re: What choices in your life that you made are worth sharing ?

I am always tempted to integrated this practice in my life but could not be at ease to do so, not sure why, maybe I am afraid of how to react if people took it the wrong way.

That fear is precisely what you need to overcome.

Please do tell what people/scenarios you are talking about: Is it with family and people around you? With neighbors? The smoking guy on the bus? The noisy couple next to you in a movie theater? Moreover, does it include positive feeds and complements that may be misunderstood on intention basis?

Pretty much anyone i talk to, with the exception of my kids for obvious reasons. Family, friends, neighbors, co-workers, managers, no matter who, I'm as honest as i can be. You may be seen as arrogant, rude and aggressive/defensive but that's the cost you pay for being the guy that listens and says what people should be hearing instead of the guy that listens and says what people want to hear.

There are several instances where my wife and I have arguments due to me not siding with her on issues she's having, this is probably the most difficult of scenarios where you need to be supportive all the while being completely honest.

rolf

Member

Re: What choices in your life that you made are worth sharing ?

2- I decided to avoid any instance of شو وقفت عليي؟. Follow the rules everywhere irrespective of whether the rest are not. it generally comes at a price (additional wait, additional cost), but at least I'm at ease of mind and a clear conscience.

I'm trying not to rant but here we go: following the rules in Lebanon is a luxury.

One time, I drove all the way from Bhamdoun to Beirut without ever overtaking on the right. I just flash cars with my headlights and wait a little and they will move out of the way.

It was a nice feeling. To be fair, it was in the middle of the night, I'm not sure that I could manage that on peak time when the road is full of trucks hogging the left lane and everybody is overtaking on the right.

But I try, because, I want to drive in a civilized and safe manner.

There are several instances where my wife and I have arguments due to me not siding with her on issues she's having, this is probably the most difficult of scenarios where you need to be supportive all the while being completely honest.

Being able to hold a different opinion and discuss your opinion is a blessing. It does come with a price and it's not for everyone/everywhere.

Regarding being honest I agree, and I believe that am honest by default, however my main issue is: when do I walk up to people and give them my honest opinion, and when do I just mind my business?

I'm a bit surprised, by the way, that you would not be honest with kids. I know they can be very annoying at times, and maybe they should know when they are annoying. However yes they're kids so you gotta keep that in mind and treat them as such, eventually they will (hopefully) learn to behave and grow into adults. The feedback that you are giving them would help the process.

Last edited by rolf (June 20 2018)

Xsever

Member

Re: What choices in your life that you made are worth sharing ?

Disagree with the credit aspect, if you could get a loan on anything (car, house, appliances, services) you should because of the time value of money. You could easily offset the interest you pay on your loan by having that money in the bank or investing in a treasury security (if you're a risk avertor). This is considering that you are in control on your credit card payments.
Credit is essential if you're serious about making money.

I did not mean credit cards as loans in my first post because I assume I would pay it at the end of each month and collect the cashback (what I do). So I hope I am more clear now.

However, regarding loans and offsetting the interest, if the treasury/savings account is returning 7% nominal per year (~5.5% real rate), then the interest rate for a car loan for example is definitely going to be way higher than 5.5% and you'd be losing. In that case, it's best to use your capital and forego the 5.5% rather than paying 10-15% interest.

Basically what I'm saying is that if any loan (car, appliances, services) have an interest rate lower than 5.5%, the definitely go for it, but if it's higher, it makes no sense to take the loan and pay the high interest compared to using capital.

Xsever

Member

Re: What choices in your life that you made are worth sharing ?

I use money manager ex app or called MMex. for better visibility. (Money wise for sure)

Thank you so much for the suggestion. Over the years, I've built my own Excel model to do exactly what the app does. I am going to install it and compare them in terms of functionality.

Azachariou

Member

Re: What choices in your life that you made are worth sharing ?

Probably the most interesting topic I've seen in a while. Awesome seeing everybody's feedback.

Personally I found that even if it means being out of a job for a while, taking the time to try things out and make sure you're on the right path is really important.
You can only last so long doing a job that you're not passionate about.

xterm

Moderator

Re: What choices in your life that you made are worth sharing ?

Regarding being honest I agree, and I believe that am honest by default, however my main issue is: when do I walk up to people and give them my honest opinion, and when do I just mind my business?

I'm glad you asked! It's generally minding your own business by default unless asked. What I generally do is assess whether my answer/opinion would be to someone's expectations (judging by the conversation) and if asked, make sure that the person knows that you're giving your full honest opinion. Believe it or not, this normally reduces the shock from your answer as you prepped the person you're conversing with.

The above applies to people you care about. The random folk you converse with, well, I generally don't care about their reactions, so i'm forward with them. (which is why many conflate honesty with aggression/rudeness/arrogance)

I'm a bit surprised, by the way, that you would not be honest with kids. I know they can be very annoying at times, and maybe they should know when they are annoying. However yes they're kids so you gotta keep that in mind and treat them as such, eventually they will (hopefully) learn to behave and grow into adults. The feedback that you are giving them would help the process.

It's a little bit more complex with kids as your words can be quite destructive. Unlike grownups, kids have not become fully attached to ideologies and thus you can avoid being completely honest by simply putting them on track[1] to figure things out themselves.

-
[1] by on track i mean what I believe is the proper track as a parent not a brainwashing track

elserge82

Member

Re: What choices in your life that you made are worth sharing ?

I use money manager ex app or called MMex. for better visibility. (Money wise for sure)

Thank you so much for the suggestion. Over the years, I've built my own Excel model to do exactly what the app does. I am going to install it and compare them in terms of functionality.

Creating accounts for the first time would take some time, but once you get familiar with it. I'm sure it is far more advanced than your excel.If you need any advice or help do not hesitate to contact me.

NB: I used to have an inexfinance.com account and I lost all entries after closing this site. Now I am backing up and managing my own database. I can go back to 4 years daily transactions.

LifeEngineer

Member

Re: What choices in your life that you made are worth sharing ?

This forum definitely needs a THANKS/LIKE button.

On the subject, it worries me that I was thinking about it for like 15min and couldn't find anything positive that I consider a decision/choice worth sharing...
I may have some that I consider negative, that I might share:
1- Don't marry for the sake of getting married. Know what you're getting into. It IS tough and demanding.  Better not do it if you feel you're not up to that.
2- Don't study engineering unless you are sure you can start your own business. It's so overrated and people think you make a fortune while being an employed engineer isn't so profitable or nice, at least IMO.
3- Study well all the aspects of a house before buying it. I'm now dealing with issues and regrets after I bought my house VERY quickly and stupidly...  Check its location first, think about your wife and kids in the future, schools, universities maybe; it better be close to your parents or your wife parents, if married/planning to; check its condition, its size, surrounding; check its legal stated, payments, etc.... and lots of other stuff.