Monday, March 23, 2015

Entry 23 - Reflection

→ Marriage
- The section on my future marital plans was my favorite bit of this component, mostly because this entry brought me out of my comfort zone and made me realize that a future with a wife was possible.  Romantic thoughts have never been one of my strengths as a human being, but I couldn't keep them in the abyss of my mind for long once I started searching for how to organize my wedding day.  Through literally thinking outside the box in this entry, I was able experience two meaningful ‘aha’ moments.  The first was one in which I was given the opportunity to think about the possibility of having a special someone with which to spend the rest of my days here on Earth.  By opening my mind to the idea of love and what it truly meant, I was then able to look at my world as so much bigger than myself, and as something that perhaps required me to look after another human being with no blood connection.  In addition, I realized from researching venues and food options how having a person to share my life with may be more rewarding than I initially thought by giving me motive to show my personality type in full light, in all of its flawed glory.  By coming to terms with this surprising truth, I saw myself as having the option of sharing my being independent and curious with a wife, finding this piece that could complete my puzzle and help me to have even more momentum with which to lead my life - imagine the change and adventures such a ‘power’ pair could be capable of!
  • Recommendation: I do recommend that this entry should have required more research and details as to how undertaking a wedding day would impact the budgets my classmates and I have created for life stage two.  Perhaps even, the entry should have also, to have helped us gain a more realistic perspective of courting, required my mates and I see how marrying at different stages of our lives would affect our livelihoods and funds, with us focusing on the fragile relationship between work and love.
  • Commendation: The entry truly helped to get us young hopefuls prepared to experience what lies behind the alluring facade of love and its seeming infinite donation of happiness

    Living with an attraction to romantic themes can sometimes be exciting, can be shown in how I gravitate towards the warm colors and sense of infinity of this picture that can be likened to a snapshot of a honeymoon stroll

→ Family
- The entry that had me detail the nature of my family chemistry, as well my definition of what being part of a family meant, helped me gain a very interesting perspective of the biological side to the intrinsic interaction within a family.  I learned how the way a family functions is based primarily on human nature and the need for family members to understand the bonds that hold them together in such a resilient way.  By tracing the meaning of resiliency to knowing one’s family history, and realizing that family history is most of the time made up of dramatic stories that make their orators immortal and constant points in life for inspiration, I was more than able to take precautionary steps to make certain my family is strong for many years to come.  This realization also made me appreciate the family life I have now, especially how my family and I constantly communicate on an adult level day after day - an aspect of my life that has allowed me a comfortable, nurturing niche from which I will be more than able to fly into my next chapter in life.
  • Recommendation: To make this stage a bit more in depth and hit home the heartfelt theme it secretly upholds, I think that after the screening of ‘Big Fish’, students should be required to discuss their thoughts in regard to the movie, especially towards how the film reminds us about our individual family lives.  We should also be required to draw up a sort of family constitution, wherein we draft a document that sums up what we want in a home and what we want from our family members.  These constitutions could then be discussed in class, with the class having to draw up a constitution of its own that combined the themes outlined in each of its creators - this exercise is reminiscent of how the Constitution of the United States was drafted, and can explore how being in a country changes family dynamics.  This exercise may also ask whether a country can be considered a family, applying the iPoly motto of creating worldly students to the project setting.
  • Commendation: The transition of ‘Big Fish’ to the life stage was priceless; I only wish the emotions stirred up in the viewer can be indulged and molded into a learning experience wherein the student comes to terms of something important they can learn about family culture.

    This picture of my father talking to my grandmother shows how food is a common catalyst fro conversation in my family, a willingness to communicate I have come to appreciate especially in times I am in most need of this human interaction

→ Credit and Debt
- What I walked away from this bit on life stage three was how I must learn to live within a means that fit my lifestyle, my individual, highly dispensable niche.  Being human has often only attributed in my life a highly idealistic image of what can be, seeing only the opportunities around me.  The part of the project that forced me to look at expenses in life also forced me to realize that in order for idealism to be enjoyed, it has to be realistically looked upon.  Money is not only the currency necessary to buy things, it has often proven itself to be the currency that allows for experiences and for life to progress.  Money is also the thing I looked at most closely while placing the finishing touches on this project component, and is thus thing that I most link with realism and looking at the world knowing it has much to offer and much to take away.  Therefore, when paying for  credit card or buying a house, I have learned to balance frugality with enjoyment, and have in this way learned to lead a more balanced life.


  • Recommendation: I do believe a budget should be included in this component of the project so that the full scope of investing in a new independent life can be fully realized.  I would have loved to see how the earning from my job for example fit into buying my house versus renting a house or apartment.  Learning a new idea is one thing, building on top a preexisting one is priceless and really hits the point being made home.
  • Commendation: I did enjoy having a powerpoint presentation before each entry, as the presentations defined key terms and concepts with which I was then able to work with when completing each entry.  Having this time to catch up with an often-times complex subject helped to guide and create an experience for the student in my eyes.

This plant accents a room, just as money will allow for me to accent my life with furnishings I shall come to know as memories 



Saturday, March 21, 2015

Entry 22 - Buying VS Renting in San Diego

1.) San Diego, California is where I would like to reside for the rest of my career.


2.) Find a home you would realistically settle down in:
(a) Looking at this website, I found what parts of San Diego were safest and most ideal to call home.  I then compared these 5 communities with descriptions of supposedly San Diego’s more prominent sectors, and from this comparison I found Carmel Valley to match my wants and my compromises with a more stable and permanent way of life.  Carmel Valley has a pretty balanced combination of top-notch schools (rated 10 out of 10), novel restaurants and eateries, and opportunities for outdoor activities like bicycling.  In a sense, this community fits the American Dream of a promise for suburban lifestyle and interest-worthy options to match this peaceful culture.  I then used Truvia to find a single-family, three bedroom home with 1,791 square feet at 4776 Caminito Evangelico.
(b) The chosen house’s purchase price is $699,000
(c) Down payment for property (assuming 10% - a one time cost) = $69,900
(d) Total estimated closing costs upon purchase (assuming 3% - a one time cost) = $20,997
(e) TOTAL MONTHLY MORTGAGE PAYMENT:
i. Principal and Interest payment per month is $3007 (assuming an interest rate of 4% for 30 years - 360 months)
ii. Property Taxes are $8400 per year (assuming a 1.2% of price - $700 per month)
iii. Homeowners Insurance is $804, or $67 per month



The topmost image shows how my monthly mortgage payment will look like and how it will be organized; the second image is the logo for thew website Zillow I worked with to calculate this payment I am required to make on top of paying off my proposed home for the long haul; I want multiple homes across the world so as to repel a monotonous way of life, and if this dream of mine is not met, I shall get job where I am required and paid to travel for a living


(f) Estimated monthly cost of the following utility expenses (it is important to note that the cost of living in the city of San Diego is about 30% higher than the national average, with housing primarily accounting for this overbearing statistic at 100% about the national average for cost of housing):
- electricity = about 500 kWh = $129.5
- natural gas = about 1,000 kWh = $259 - garbage = $25
- water = (base fee) $81.24 = a reasonable estimate would be $125 in the winter season and $260 in the summer months
- 0-8 HCF used billed at $3.90
- 9-24 HCF used billed at $4.36
- 25-36 HCF billed at $6.23
- each HCF used after initial 36 HCF is billed at $8.77


This map of San Diego split into sectors is the key I used to calculate my monthly gas bill, as each living sector has a unique climate that requires a certain gas usage amount for a comfortable environment 



3.) Find a similar home near the same location that you would possibly like to rent:
(a) Looking in Carmel Valley, the area where the aforementioned house up for sale is located, I was able to use the website Trulia to find a moderately priced rental property with a Mediterranean flare in the Esprit Villa Community.  Located at 9830 Reagan Rd, the 750 square foot house with one bedroom and one bath is perfect for the bachelor lifestyle I would lead with a rental, a lifestyle where work and independently exploring the amenities offered by San Diego would be my main two goals in life.  This unpredictable way of living life fits perfectly with owning a rental property as its list price is monthly and short-term, meaning I can leave the property anytime I wish and the rental has no allegiance to any one owner.  Not settling down is a good way to start life, as it will be this part of my life when I shall still be deciding where to settle down and how I wish to spend the latter part of my days here on Earth.
http://www.trulia.com/rental-community/9000025168/Esprit-Luxury-Villas-9830-Reagan-Rd-San-Diego-CA-92126/

This diagram shows the inner realms of my rental property, and shows how it will be able to meet my individual needs and so my unstable and erratic way of life wherein experimentation will be my motto and financial devotion shall be a risk of mine that does not want a non-rental house as a source of ammo

(b) The rental property’s monthly price is an average of $1,757
(c) Security deposit (one time fee) = $500
(d) Given the fact that the community in which this property is located shall not cover my utility expenses, I will assume these expenses to be the same ones as the ones I listed for the bought home scenario.
- Each month = about $606
(e) Renter’s insurance cost per year is $278.31 or $23.19 monthly, these amounts being based on the fact that I agree with this option to insure my homebody possessions against fire, theft, and vandalism, and on the fact that the area in which I am renting will charge 1.32% of my monthly rental fee for such insurance
(f) The property I am looking to rent has no restrictions on its use, other than to enjoy its plethora of storage and its private pool


4.) Upon coming into San Diego, I would right away find a job and place from which to work.  In this first part of my life, I plan to build up a healthy saving account with a bank of a fairly high interest rate so that my financial state can be given the opportunity to grow and stabilize, with good credit to match this stability. Doing this, I shall most likely be titled as a bachelor, alone and still searching for how to best take advantage of the money I will be making with a steady job.  In this search, I will probably self-invest with adventures to the beach and to dine-in places where California and ambition will combine to provide an experience that will in turn provide inspiration for middle age wisdom and a permanent way life.  To best suit this ‘lone wolf’ attitude toward life, a rental property will be most ideal for shelter, as its price is based on monthly payment that allows for an easy move-in and move-out process that may be needed if I indeed still figuring out how I want to go about living out the rest of my life.  The convenience of owning property that does not require a permanent definition for home will also be helpful if I have a rough beginning to life, as is often expected of young hopefuls with jobs with no clear denouement.  If San Diego does prove to match my definition of home, I would want to to buy a house for my own and settle down my ambitions to focus how I want to this Earth doing and living.  For many, and for perhaps myself, this more permanent way may mean starting a family of my own and so a house in my name would provide a good vcenter for family life and the stability necessary for my children to know what sort of unwavering support a family can spawn.  Buying a home in San Diego will give my wife and I a saving account in the value of our home, providing further financial support for college and other family expenses, and will also keep my wife and I in tune with our personal needs with a lively hub for daytime and nighttime ventures.

Wednesday, March 18, 2015

Entry 21 - Credit Card Shopping

CREDIT CARD RESEARCH

1. Credit card name (Visa MasterCard, Discover, Kohl's, etc.)
  • Citibank Mastercard
2. Type of account
  • Mastercard (no late fees or a penalty rate)
    • Simplicity Credit Card
3. Company name, address, phone
  • The name of the company for my first option is Citibank, a New York-based commercial bank and financial services operation
  • Nearest address:
    • 285 S Lake Avenue
Pasadena, CA
(626) 219-7037
4. Website
5. Locations where the card is accepted
6. Annual fee (if any)
  • No annual fee
7 Payment grace period
  • 23 days
8. Annual Percentage Rate (APR)
  • This amount shall depend on my individual credit worthiness, and will also reflect to the market based on the Prime Rate
    • options: 12.99%, 15.99%, 18.99%, 20.99%, 22.99% (average = 18.39%)
9. Finance charge calculation method
  • Single-payment credit structure, wherein a grace period is given to the cardholder of no interest and in this grace period, items and services are paid for in a single payment after the purchase.  If the purchase is not settled after the grace period has reached its full capacity, then an interest rate is applied to the balance and thus its value increases, costing the consumer more money in the long-run.
10. Credit limit
  • As low as $500 (determined after application is submitted; based on financial status and on the three c’s criteria - capital, character, capacity)
11. Minimum payment
  • 1/36 of total balance due by specified due date
12. Other fees: (late payment or others that you find)
  • Transaction fees
    • balance transfer: $5/3% of transfer (greater of the two chosen)
    • cash advance: $10/5% of the amount of each cash advance (greater of the two chosen)
    • foreign purchase transaction: 3% of each purchase according to US dollar value
  • Penalty fees
    • returned payment: up to $35
  • Minimum interest charge: no less than 50 cents (charged on cash advances and balance transfers of transaction date - due date is at least 23 after the close of each billing cycle)
13. Other features: (??? - you tell me)

This is the logo of Citibank, an up and coming bank majoring in customer service; in this homely environment, a consumer applying for a credit card is more heavily judged by his or her status as an abiding financial guru



1. Credit card name (Visa MasterCard, Discover, Kohl's, etc.)
  • Bank of America Visa
2. Type of account
  • Bank Americard Cash Rewards Credit Card (1% cash back on groceries,  2% at grocery stores, and 3% on gas for the first $1500 in combined grocery store
3. Company name, address, phone
  • Bank of America
  • Nearest address:
    • 1687 E Colorado Boulevard
Pasadena, CA
(626) 578-5181
4. Website
5. Locations where the card is accepted
  • The card is accepted at millions of merchant stands in over 150 countries worldwide, these stands all exhibiting the Visa logo verifying they do indeed accept this form of credit card
6. Annual fee (if any)
  • No annual fee
7 Payment grace period
  • 25 days
8. Annual Percentage Rate (APR)
  • 12.99-22.99% (for purchases and balance transfers) varying on market behavior
9. Finance charge calculation method
  • This card follows the philosophy of single-payment credit, where a purchase is transacted after its dealing with a single payment being due at the end of a grace period.  If the grace period due date is met without any payment, then an interest rate is applied to the balance due.
10. Credit limit
  • $5000 (limit is adjusted if it is surpassed and cannot be controlled according to the willingness of the consumer)
11. Minimum payment
  • 1/36 of balance due
12. Other fees: (late payment or others that you find)
  • Balance transfer fee: 3% of each transaction (minimum of $10)
  • Transaction fees:
    • purchases (of wire transfers from a non-financial institution): either $10 or 5% of the amount of each transaction (greater amount chosen)
    • balance transfers: either $10 or 3% of the amount of each transaction (greater amount chosen)
    • cash advances (direct deposit and check cash advances): either $10 or 3% of the amount of each transaction (greater amount chosen)
      • (ATM, over-the-counter, same-day online and cash equivalent cash advances): either $10 or 5% of the amount of each transaction (greater amount chosen)
      • (overdraft protection cash advances, if enrolled): $10for each transaction - not assessed if checking account overdrawn by less than $10
    • foreign transactions: 3% of the U.S. Dollar amount of each transaction made in a foreign currency or made in U.S. Dollars that is processed outside the United States
  • Penalty fees
    • late payment: up to $35
    • returned payment: up to $25
13. Other features: (??? - you tell me)
  • 0% introductory rate for 12 billing cycles (over the course of 60 days)


    This is the logo of Bank of America, a multicellular bank that has grown into a sort of weed, gulping smaller banks and expanding on capitalism; such a bank has no many funds so as to be more lineant in forgiving expired grace periods



1. Credit card name (Visa MasterCard, Discover, Kohl's, etc.)
  • Nordstrom Visa
2. Type of account
  • Nordstrom Visa Signature Credit Card
3. Company name, address, phone
  • Nearest department store:
    • Hastings Village, 3363 E
Foothill Boulevard
Pasadena, CA
(626) 264-9044
4. Website
5. Locations where the card is accepted
  • Where Visa cards are accepted (any place holding a Visa logo at its ‘cash register’)
  • Card-holder eligible to get special access to certain events and hotels associated with Visa Signature
6. Annual fee (if any)
  • No annual fee
7 Payment grace period
8. Annual Percentage Rate (APR) - based on Tier I qualification
  • 10.90% for Nordstrom purchases (shall vary with the market according to the Prime Rate - printed on temporary card)
  • 14.90% for non-Nordstrom purchases and cash advances (shall vary based on the market and the Prime Rate is use)
  • (penalty): 27.90%, varying according to the market and the Prime Rate; applied to account if minimum payment is not received within 60 days of due date
9. Finance charge calculation method
  • This card is based on revolving credit, wherein many items can be bought as long at the total amount  does not go over the assigned card limit, with repayment being made at regular time intervals  for any amount at or above the minimum ‘down payment’ required - this amount showing willingness to pay and the capacity to do so.  The rest of the balance due is met  with an interest tagged onto its value.
  • The cardholder in question is placed in one of 4 tiers, with each being given a slightly higher APR, as well as a slightly higher interest rate, than the last.  The tiers group people based on their financial health, with the first Tier being the most ideal and so reserved for those who get Es on the criteria encompassed by capital, capacity, and character
  • Interest rate for Tier I applicant: 10.90%
10. Credit limit
  • No pre-standing credit limit; Nordstrom shall analyze spending patterns and financial status of card-holder periodically to formulate a limit as needed
11. Minimum payment
  • The greatest of (a) $35 (b) 5% of my new balance  rounded to next higher whole dollar amount (c) the sum of all interest charges and fees inflicted during the current billing cycle plus 1% of my new balance, rounded to next higher whole dollar amount
12. Other fees: (late payment or others that you find)
  • Transaction fees
    • cash advance: $5/3% of each cash advance (greater amount chosen)
  • Penalty fees
    • late payment: up to $35
    • returned payment: $25
  • Minimum interest charge: the charge will be no less than 50 cents (rate charged on cash advances on the date of transaction - due date is at least 25 days after the close of each billing cycle)
13. Other features: (??? - you tell me)
  • I shall earn 1 point per net dollar spent outside Nordstrom (anywhere Visa cards are accepted) - points apply to in-store discounts and other sorts of lucrative rewards
  • Offer: earn $20 Note when you spend $100 with your Nordstrom card on the day you apply
  • If new balance is less than revolving credit line, the current due each month is the greatest of (a) $35 (b) 10% of new balance, rounded to next whole dollar (c) sum of all interest charges and fees applied during the current billing cycle plus 1% of new balance - rounded to next whole dollar

Nordstrom is a luxury department store specializing in all types of apparel; the clothing here can be quite expensive and so gaining points from credit card with the store may not be quite a strong benefit from having one
CREDIT CARD ANALYSIS


1. Which credit card has the highest annual percentage rate and how much is it?
  • The credit cards being able to yield the highest percentage rate were those of Bank of America and Citibank, both of these credit bureaus reaching a rate of 22.99% for most day to day purchases.  These percentages of course do depend on the market and the Prime Rate, a rate that the company decides on periodically based on the country’s financial state.
2. What method is used to calculate the monthly finance charge for the first major credit card?
  • The first major credit card I went with was one from the group Citibank, with its only financial charge being calculated as all forms of single-payment credit are calculated: a single payment is required after a purchase, with no interest rate being applied.  The details of this particular situation are outlined according to the details aforementioned, with a 23 day grace period being allotted.  Of course though, an APR of 18.39% is applied to the amount that must be encompassed by the customer, him or her having to thus pay more for the item bought with the credit card in the long-run than if he or she had bought the item upfront in cash.
3. When does the finance charge begin to accrue on the credit from the local department store?
  • The finance charge begins to accrue after the grace period is surpassed, this being 25 days after a purchase is carried through.
4. Do any of the cards have annual fees?  If so, which one (s) and how much is the fee?
  • None of the credit cards I was interested in had annual fees (in this way, they look more desirable than if they did).
5. If there a transaction fee on any card? If so, how much is it?
  • Transaction fees for the Citibank card
    • balance transfer: $5/3% of transfer (greater of the two chosen)
    • cash advance: $10/5% of the amount of each cash advance (greater of the two chosen)
    • foreign purchase transaction: 3% of each purchase according to US dollar value
  • Transaction fees for the Bank of America card
    • purchases (of wire transfers from a non-financial institution): either $10 or 5% of the amount of each transaction (greater amount chosen)
    • balance transfers: either $10 or 3% of the amount of each transaction (greater amount chosen)
    • cash advances (direct deposit and check cash advances): either $10 or 3% of the amount of each transaction (greater amount chosen)
      • (ATM, over-the-counter, same-day online and cash equivalent cash advances): either $10 or 5% of the amount of each transaction (greater amount chosen)
      • (overdraft protection cash advances, if enrolled): $10for each transaction - not assessed if checking account overdrawn by less than $10
    • foreign transactions: 3% of the U.S. Dollar amount of each transaction made in a foreign currency or made in U.S. Dollars that is processed outside the United States
  • Transaction fees for the Nordstrom card
    • cash advance: $5/3% of each cash advance (greater amount chosen)
6. Is there a minimum finance charge on either of the major credit cards?  If so, how much is it?
  • For both credit cards, there was minimum finance charge of 1/36 of the total balance due in each billing cycle
7. Does the first major credit card charge a fee for late payments?  If so, how much is it?
  • The first credit card from Citibank does not actually charge a late fee.  However, it a balance is not paid on time, an interest rate is charged and the credit card limit may be reduced since the criteria of character has been violated.
8. What is the grace period on the credit from the local department store?
  • The grace period for the Nordstrom card is 25 days in length.
9. Rafael wants to buy a new CD player that costs $450.  According to his budget, he can afford payments up to $62.00 per month.  Which of the three credit cards you’ve found would you recommend that Rafael use to purchase the CD player?  Explain why.
  • Given that Rafael may not know when he will be paying off this purchase in full after using a credit card for its transaction, he should probably go with a card that has a low annual percentage rate so that more of his payments to the credit card bureau of his choosing shall be used to pay off the item he bought rather than benefit the bureau itself.  Since him buying a CD player is a one-time purchase, the first two credit cards I analyzed would most do for the situation, given how simply their setup is.  In this sense, he would be required to pay a minimum amount per month of about $12.50, way below what he is willing to pay per month - $62 -, since $12.50 calculates to be 1/36 of the balance due at $450 - the tag price of the CD player.  Since the lowest possible APR for both credit cards in 12.99%, either one would work.  However, since the first one has no benefits tied to its application, I suggest he use a new Bank of America credit card, as its first 12 billing cycles has an APR of 0%.  In this way, Rafael would be more effectively using his money to pay off his debts and thus accrue a strong credit history.
10. In general, reflect on how making responsible financial decisions regarding borrowing and credit (debt) can lead to financial well-being over a lifetime?


  • Using a credit has major pro in its methodology: it allows its users the ability to buy more things in a shorter amount of time, enabling them to not directly lose hard-earned cash stocked away in a savings account.  In this way, a person’s account can be allowed to grow and gain interest over time, eventually allowing for its rewards to be enjoyed by its owner or owners.  However, there is one necessary step in order for such a smooth process to be met: credit card users must make responsible financial decisions with their newly-gained power.  Consumers must make certain the credit card they have fits their needs and lifestyles, offering them a reliable APR so that the purchases they make are easily paid off in the long-run.  If the consumer both purchases with a credit and shows that credit card that he or she has capital with which to pay the purchase off, has capacity so that future purchases can be paid off, and has character wherein his or her financial state allows for the purchase to be paid off, then a strong credit history is built up, and more rewards are enjoyed by the consumer, one these rewards being a higher credit limit or lowered interest rates and annual percentage rates.  Such rewards only means more money in one’s pockets and a better livelihood teeming with a good storage of money stocked away and enough buying power to live life to its fullest.