Sunday, May 6, 2007

Some financial tools

Overdraft is a great financial tools especially to a business people.

Why??

Because the overdraft facilities can track where the money go. So basically, the overdraft facility can help them to calculate the expenses as well as the income.


What is overdraft (OD)?
An OD is a credit facility that the bank gives, it is the same as personal loan but overdraft charge the interest when to the amount that you used so if you used just 1k so you just pay 1k of the interest.

Lots of people thinks that the OD can be used by business people. They were wrong. The OD can be a great tools for people who wants to plan their financial properly. Financial mistakes that everybody seems to make is that they did not monitor where their money gone so with OD, they can track where the money gone and for what purpose.

Can everybody use OD?
As stated above, all people who don't have any CCRIS or CTOS can use OD but they must learn to do it. What is the mechanism and how to use OD properly so it can benefit you and not the banks. So learn from the expert, from the person who have an experience or a Financial Planner like Aziz CFP.

Conslusion?
OD is a tools for your financial planning. It is not the solution.

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