2016-12-08 Thu

Observations

I have a friend who has a Credit Card, one of those cards you get when you’ve a Bad Credit Rating. Friend deposited $500 in the account ten years ago and has been using the card for those purchases that require a credit card – Internet Hosting, Car Rental, Hotel Room, and so on.

I just did the sums.

(1) Ten years ago Friend deposited $500 with the credit card people and has not been earning interest on that $500 Lo! These past ten years

(2) Friend has been paying $5.95 per month for the privilege of the credit card people holding her $500

(3) I get 2.5% Interest (Annual) or 0.2083% per month from my online bank at EQ bank.

(4) If Friend had been able to put that $500 into an Interest-Bearing Account at 2.5% annual rate and had been able to deposit that $5.95 per month, by now (ten years later) the account would have blossomed to $1,531.

(5) Instead Friend will now cash in the card, receive $500 back from the credit card company.

(6) The credit card company will have “made” $1,031 over the ten years.

Of course, the credit card company has expenses – Staff, an Office, Electricity Bills and so on, so the $1,031 isn’t profit.

But it does represent a form of loss for Friend.

And of course, ten years ago that card, and that loss of interest, was a necessary facet of Friend’s life.

Makes you think.

Makes me think, at any rate!

Observations

Christopher Greaves Home_IMG_20161126_173303348.jpg

Following on from the Road-Sign Debris left lying along Gerrard Street, ...

Toronto City is plagued with this stuff.

The Solution is quite simple:-

“The Final Invoice on any job will not be paid until the Contractor has submitted Digital Photos showing that the Entire Site is Cleaned up”.

City Staff can do spot checks on, say, one in ten contractor sites to make sure that the photos tell the truth.

And if you are found in Breach, your next Estimate will be taxed at an extra ten percent. That means your competitor is more likely to get the job.

Cash Flow speaks louder than words.