Number one one your list of resolutions should be to start using your credit card as little as you possible can. A large part of using a credit card is mostly psychological anyway. When most people pay for something with a credit card, it is like they are not actually spending money. And it’s not until the credit card billing date that they actually think about the items that they have charged.

Unfortunately, when that moment arrives, a large number of consumers do not have the money to fully pay off the balance. as a result, the credit card balance is allowed to slowly grow, month by month, until it is totally out of reach based on their current income.

Most consumers in this country have fallen into the habit of using credit cards is as if they are cash. But, that is really far from the truth. It helps to keep in mind that when you use a credit card, you are taking out a loan. You are, in effect, spending future money.

The thing is that when the economy is down, future money is not guaranteed. So, unless you absolutely need to, try not to take these unnecessary loans against your future.

Following that, the next most critical change that you can make in your financial life is to simply cultivate the habit of not living beyond your means. What this means is that instead of buying the most expensive ’status’ car that you can buy, purchase a car that fits in with your current income level.

When you go to purchase a home, don’t reflexively look for one in the most ritzy part of the city. instead, purchase one in the nicest neighborhood that you can afford. Buying things that you really can’t afford, usually with the help of a credit card, is a disaster waiting to happen. And, with so many people living paycheck to paycheck, a financial disaster is the one thing that they really can not afford.

The biggest reason that many families find themselves filing for bankruptcy is the unwise spending choices that they have made in the past. But, sometimes, circumstances beyond your control intervene and through no fault of your own, you run into financial difficulties. If so, you may have no choice but to file for bankruptcy. But, in many cases, long before you are hit with financial problems, there are things that you can do to help prevent a bankruptcy risk.

Step 1

Study the big picture. For example, when you start feeling a pinch on your wallet because of what you are paying for in gas, ask why. Ask why and see the bigger picture. When you start spending money for items and you are wondering why it cost more, start to question this for yourself and research.

Step 2

Study history. As you begin to study the history of the U.S dollar, and the monetary structures of the past, you will begin to see that history really does begin to repeat itself. All markets go in cycles, your best bet is to understand these cycles, and see them for what they are, not what you want them to be. The past will always give you clues to what happens in the long term.

Step 3

Be humble. Never make moves based on emotion when it comes to investing and studying what will happen with your money. There are always going to be highs and lows, but your ability to see the truth will come when you are humble, and always willing to learn. Don’t get greedy in the high times or low times. Do things with a sense of moderation. Study, be humble, and keep your ears and eyes open.

I have showed you direct steps on how to make this happen, take a close look now at what really does happen by following these steps.

For example, less people are using credit and more are using cash. Credit card spending dropped very sharply in the beginning of 2009 while Americans were trying to pay down some debt and adjust to their lower credit card limits. But that doesn’t mean that spending went down. With the information at hand, it is suggested that more people are paying in cash. It makes sense; nobody wants to pay 18% interest on some socks and underwear.

Another shift in American behavior is a greater sense of suspicion. With banks going under, ruining the economy, with Stock prices surging, and jobs disappearing, most people are on edge right now. Needless to say, the past few years have been one big let down. Records show that American confidence in banks, big business, and other pillars of establishment are at an all time low.

Because of these circumstances, there has been less brand loyalty. Millions of American consumers have traded down to store brands and most of them plan to stick with them. To some people, the quality of lower priced products is better than expected. Along with that, people now believe more than ever that “smaller is better.” All over the nation consumers are buying smaller portions, smaller houses and cars, and sticking to local community based services.

Another widespread trend in American consumerism is the boycotting of window shopping. It’s common sense to know that when you browse, you buy, and when you buy you pay. People don’t want to pay big if they don’t make it big. Consumers all over the world are avoiding unnecessary trips to the mall, and only buy with frugality. When it comes to groceries, consumers are going back to the basics, especially families. They are also gardening more and keeping waste to a minimum.

The Federal reserve is doing this in order to keep interest rates from rising. While this is a admirable position to take. The manner to which they are keeping interest rates low is just a ticking time bomb. Sooner or later the interest rates will rise and when they do, look out! I believe it is very possible we may return to the hyper inflation of the 1980’s. I truly hope that I am wrong on this point. High inflation will have a very stagnating effect on the economy as a whole. Companies will not borrow to expand and thus another leg down for the economy is very possible.

Another effect of the government buying its own debt is the implications on the dollar. What the federal reserve has essentially done is to print more money. Trillions of it. Well if there are more dollars floating around, each singular one becomes worth less. The price of gold is already reflecting this by making new highs above $1000 on a regular basis. The price if crude oil will also rise since our dollar is worth less.

So far there has been cooperation of the current dollar policy by foreign central banks in China and the Middle East. The question will become whether they will continue to support this policy down the road. At the current time, foreign buyers purchase a large portion of our debt. In the neighborhood of 40-50%. If they decide to change their bond purchasing policy, it will have a deleterious effect on interest rates.

First, you need to understand that collateral is the items, or assets you are using to secure obligations for yourself or your business. Obviously, you want to wisely manage these assets because they will be repossessed if you default on your obligations. In today’s market, a variety of types of securities are often the collateral. Another type of collateral that is often used is cash. Carefully managing collateral is always a wise business practice. With the complexity of hedge funds, it can be hard to keep your finger on the pulse of what is happening with your collateral.

In this new economy, everyone is being more vigilant about verifying existing trading relationships, evaluating all counterparties’ creditworthiness, and examining the rational of all trading relationships. Companies focus on improving risk-management policies and procedures.

Your collateral is important to you. It is what makes it possible to obtain loans and other money services. Poor management can result in loss of assets, loss of money, and even the collapse of a business. If you are in a position in your job to work with collateral management for your company, you are responsible to your company to make wise management choices in order to increase your companies credibility as well as their bottom line. Efficient collateral management can provide a competitive advantage in the marketplace.

It isn’t very feasible to manage collateral just using spreadsheet any more. Most companies are turning to banking software to meet their growing needs. Banking software can assist you by giving you access to marketing expertise and resources necessary to meet your collateral management requirements. Banking software allows you to retrieve information on a variety of types of transactions, which is important when working with collateral management. Some of the services that can be offered through banking software are custodizing assets listed as collateral, handling income and margin calls, processing income, clearance and collateral management services for your cash transactions, and assurance of collateral eligibility.

This information is usually given to shareholders who want to raise corporate value based on the information they get. This set deals with the record company’s transactions and create financial reports that summarize the data in the balance sheet and profit and loss calculation. This report is then used to determine the value of the company. If the company publicly traded, financial reports will be wider spin, to consumers, competitors and employees.

Management was given the task to use business funds for business can run economically and efficiently. Financial accounting can be used to assess the effectiveness of expenditure management by showing the allocation of resources and monitoring to assess whether  should be transferred to another department or replaced to improve corporate profits.

It is important to note that this provides information on individuals who try to determine the feasibility value of the company and did not report the value by itself. This report is given to individuals outside the company and there could be a wide spread, even reaching a company competitors and other sources.

This is important for shareholders who are interested in determining the value of the company, where they have a part. By recording this data will help companies assess the management and the resources they allocated to run the company better, and financial reports to help determine the effectiveness of corporate management.

Executive-level salaries based on company performance. If the company’s performance was not reported in the right way, executives made money in excess of what can be produced by business and create a picture of company performance. These false alarms cause a bloated stock market by giving shares to a company that is not feasible, and this method gives a bad impact on the economy.

Because it can be said that the concept of profit in the conventional banks is more likely, focus on the point of the material benefits, whereas the concept of profit in Syariah banks should consider the benefits in terms of temporal and ukhrawi (Hereafter).

If the customer is the purpose in accordance with the purpose of sharia banking, then in principle there is no shortage of savings in Syariah banks because of the balance between worldly and ukhrawi. However, if the destination is more customers to the material aspects, the benefits could be obtained would be less in line with expectations.

For more details, we try to compare between conventional savings account with a savings of applying the principles of sharia, or for the results mudharabah, as follows:

Conventional Savings:
- Flower size has been determined in advance by the bank regardless of whether the bank was a profit or not.
- The amount of interest is whether the bank’s fixed loss or profit. Although the economy was booming and banks are getting a lot of profit, but still of interest given to customers has not increased.

Savings  Syariah (the principle of results):
- Not offered flowers but for the result and the first set is the ratio (ratio) between the customer benefits and the profits earned by banks, eg 60:40 means that 60 percent of profits for the customers and 40 percent of profits for banks. Therefore received the benefit of profits depending on the customers acquired by the bank.
- The amount of benefits received by customers will increase as the bank’s profits are booming.

In Syariah  banking system does not apply because the interest rate is usury, in other words, Islamic banks avoid the wronged party or menzalimi.

For example we see customers saving with flowers (conventional banks), at the time of economic crisis, saving the customer a higher interest rate and the bank be the “wronged” because the bank was very lost, but must pay higher interest to customers.

While the economy was booming when the party becomes the customer’s savings are “oppressed” because interest earned remain small even though the bank was a big benefit. Things like the above will not occur in Syariah banks to apply the principle to the results.

Shareholders as the holder of supreme power company disebuah will bestow the power to the top management who are appointed by the Shareholders’ General Meeting (AGM). Not uncommon in a company’s largest shareholder or majority can double as top management.

This is not directly led to top management will work for the interests of shareholders and not for the interests of employees or workers who are also part of the company, because they are appointed and dismissed by shareholders through the AGM. This situation will encourage top management to make employees or workers as a ‘cash cow’ in achieving its goal, which is at the heart of management science.

Weakness In System In Modern Company

What interests of shareholders? The answer, of course, the ever-increasing profits that will be followed by rising stock prices and dividends. In the current system increased corporate profits can only be enjoyed by the shareholders and does not have a significant impact on the welfare of employees or workers. Many companies that make profits and continue to increase every month, quarter, semester and year. Does this benefit increase will be followed by an increase or an increase in employee salaries or the workers? Of course, her answers are not. Especially in Indonesia, where most employees and workers is not a permanent employee and contract only six months or a year. Are they going to feel the benefits of increased corporate profits? Once again, of course not.

If the capitalist system is like the human body, where the pain suffered by a single finger will be mislead by the pain throughout the inner and outer Tubu. Compare if the finger is pinned cincing diamonds, whether other parts of the body will feel the effect directly? Does eye at all times keep a finger so as not to wound, burn and so will feel the effect? Is your nose at all times maintain a finger through the sense of smell will feel the effect? Is the mouth which is a tool to enter the energy source for the finger will feel the effect? Likewise with other body parts.

Capitalist system is an interrelated system of globally integrated. Disuatu crisis events in which the company or any other country that has relevance is directly or not directly with the company or our country, could not help as part of the capitalist system will feel the domino effect is very significant. On one side of their profits will not provide a significant impact, in other words the effect of losses received a society with a capitalist system is not comparable to the effect that profits will be accepted.

Illustration above illustrates how the capitalist system unfairly treats shareholders and employees or workers who are part of a company. The advantage is felt only by shareholders, while losses will be felt by all parts of the company, including employees or laborers. Then how is the system fair? According to the author, a fair system is making employees or workers as the sole shareholder. Gradually this system will make a company will be owned and by the employee. In this case the people outside the company’s internal prohibited from owning shares of the company, this is not directly will reduce the dependence of a company globally as liaison point between the company and the outside world globally through stock ownership has been lost.

Weakness In System In Banking Financial Institutions

The next fundamental weakness of the capitalist system is the system of interest. Capitalist system positions the money as something that has value based on time, so the money will have different values for the time difference. This situation will force financial institutions particularly banks provide financial aid to the expected return rate, so the flowers can be defined as ‘no help without reward’. This is contrary to the principle once a Muslim, because Islam is the largest religion in Indonesia, where help is given with sincerity and let God Almighty who returned his way.

Whether we realize it or not interest is one of the main factors causing the 1997 monetary crisis and the global financial crisis today. All financial institutions, both banks and non banks withdrew funds from the community with the lure of flowers and channeled back to the community by getting rewarded with flowers. Greed will encourage financial institutions to channel funds to any party on a large scale, occurred akibanya bad debts that have a major impact on the institution itself. This happened in Indonesia before the crisis and monetary crisis spur, while in the United States was spurred housing credit crisis that caused the global financial crisis. On one side if the government or the central bank will conduct strict regulation is also bad for the economy because it will happen phenomenon called credit crunch. Where financial institutions are reluctant to distribute credit for tight regulation so that the economy does not work, especially the real sector to absorb more workers.

Imagine, a system that provides alternative ‘forward hit back hit’ this is the current definition. How foolish we are, to create a system in such a way that no solution to overcome it. Then what is the solution? The solution will not be easy, because it’s not an easy job to change a system that is applicable for centuries. Slowly and surely, the system of interest can be removed, separate the first step of credit loans and productive consumption. Instead of flowers for consumption credit could be drawn ‘donations’ which is the willingness of customers without coercion. This can happen if communicated well. Persoalnya, financial institutions are not the foundation of life from donations and no cost of money, whether the cost of money can be covered by ‘donations’? Of course you can! Two-way communication that will make both creditors and debtors as colleagues and mutually beneficial. Replacement rate of productive credit course for the results, such as the concept of Islamic economy.

Weakness in the Exchange Rate System

Capitalist system as a majority system is applied in many countries, including Indonesia, putting the value of money as something different because of differences in time, place, power of purchasing power, and so on. This difference would encourage speculators to take advantage as much as possible without regard to the fate of many.

In general there are two exchange rate systems, ie fixed exchange rate system and the system of floating exchange rates. Fixed exchange rate system requires governments to maintain foreign exchange reserves remained stable exchange rates and are at the expected position, while a floating exchange rate system, the forces of demand and supply in the market for foreign exchange (forex) will determine the value of a currency terhadaap other currencies.

Both systems are still implemented in some countries. Actually, Indonesia during the new order uses a fixed exchange rate system, although in theory the system used is a floating exchange rate system under control, because the government determines the upper and lower limit value of the rupiah against other currencies and the government can intervene to support the rupiah keposisi expected. Post-financial crisis, because the government via the Bank Indonesia was not able to resist the attack of speculators and keep the exchange rate remained stable, pushing Indonesia implement a floating exchange rate system.

Both systems have a weakness, because the value of a currency exchange can be used by some irresponsible people to obtain benefits, both economic benefits and non-economic, because both systems are highly vulnerable to factors outside the economy that can not be controlled by economic actors.

For example, a state x using the system of fixed exchange rates, those who want to undermine the state governments x and has a strong financial exchange rates can affect the state x in a way to buy foreign currency with foreign currencies x massive and continuous, state government as a result X will difficulties maintaining its exchange rate at the expected position, because the attack was made suddenly and continuously because of his goal to overthrow the government of country X, so that foreign exchange reserves x are depleted over time will dramatically or even exhausted and minus because it was owed another kenegara. History records, this phenomenon led to Suharto should be willing to resign from the presidency who had occupied Indonesia for 32 years.

It can also apply to countries that use the system of floating exchange rates, Ulah speculators who have a strong financial exchange rates could encourage a keposisi currency they expect to make profits. For example, Indonesia with a floating exchange rate system, and there are those who want to create chaos in Indonesia, the rupiah can use to realize these ambitions dollar by buying massive and continuous use of rupiah that will push the rupiah weakened, with the other party notes as actors in the foreign exchange market to support this, as a result of BI will be difficult to keep stability in the rupiah and inflation will increase because of raw material used to produce goods and services purchased in dollars.

Increased inflation will be followed by peninggkatan interest rates to attract public funds through savings and deposits in order to reduce the money supply in the community that will reduce the rate of inflation and push the rupiah is expected keposisi (rupiah strengthened against the dollar). On the other hand, increasing interest rates will cause economic actors are reluctant to apply for a loan and more tends to invest funds in the bank, the result did not go real sector, unemployment is not absorbed, so that high crime rates, poverty increased, and many of his domino effect.

What is the solution to this? The answer is togetherness, remove greed and want to share for the benefit of all. Early stage could be possible by copying the European Union to impose a single currency, it also can be tried for the ASEAN region, the region gradually more Asia-Pacific and eventually the world are expected to use the single currency. So far, the main factor causing the difference value for money of a country with other countries, because developed countries and the rich are reluctant to share with the poor countries and take advantage of the system that they created themselves.