Comments on: Expenses and Cash Flow http://peterzaitsev.com/2009/06/07/expenses-and-cash-flow/ Personal thoughts, business, economics, politics Sat, 27 Feb 2010 01:18:11 +0000 hourly 1 By: admin http://peterzaitsev.com/2009/06/07/expenses-and-cash-flow/#comment-530 admin Fri, 12 Jun 2009 05:39:06 +0000 http://peterzaitsev.com/?p=70#comment-530 Nils, I believe here in US there are cases when credit limit can be a lot higher than 3 months of income. I personally find it convenient as it can be used as a quick form of payment in case of emergency which means you need less of liquid assets than otherwise. True however the availability of credit requires much more of self discipline as you can spend unwisely not only your current income but also future one. Nils,

I believe here in US there are cases when credit limit can be a lot higher than 3 months of income.

I personally find it convenient as it can be used as a quick form of payment in case of emergency which means you need less of liquid assets than otherwise.

True however the availability of credit requires much more of self discipline as you can spend unwisely not only your current income but also future one.

]]> By: Nils http://peterzaitsev.com/2009/06/07/expenses-and-cash-flow/#comment-529 Nils Thu, 11 Jun 2009 18:24:41 +0000 http://peterzaitsev.com/?p=70#comment-529 Especially credit cards companies seem to operate like the mafia currently, they try to hide the real costs of a buying decision or postpone it so people spend more to always keep them in debt and paying extremely high interest. In Germany (where I live) there are some banks which allow you to overdraw your account up to 3 times your monthly income at around 12% interest. How are you supposed to ever pay that back? It makes sense to lend money some times (especially when buying a home), but most times it's just a way to get screwed over. I think the russian way is safer for most people and the economy as a whole... Especially credit cards companies seem to operate like the mafia currently, they try to hide the real costs of a buying decision or postpone it so people spend more to always keep them in debt and paying extremely high interest.

In Germany (where I live) there are some banks which allow you to overdraw your account up to 3 times your monthly income at around 12% interest. How are you supposed to ever pay that back?

It makes sense to lend money some times (especially when buying a home), but most times it’s just a way to get screwed over.

I think the russian way is safer for most people and the economy as a whole…

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