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- Compare the function of Traditional Wheai and Credit Card during the Financial Crises
Compare the function of Traditional Wheai and Credit Card during the Financial Crises
Chen Tsu Yin
I-Shou University
In Taiwan, the environment of employment is so difficult that only 24.4% of the graduates from universities in the summer of 2009, have found a job. Therefore, one bank manager gave his advice to young people how to manage their money. First, cut the excessive expense as possible as you can.
There is a good example, using [wheai] as a tool to save and make moneys.『28 Years Old Landlord Owns Multimillion Fortune』. Since high school,this young student worked part time to earn money and joined [wheai] to save money. Right after he attended a university in 2001, he used the network to study real estate and bought a 1,830,000 Taiwan yen hose by gathering 300,000Taiwan yen from his [wheai] and 100,000 Taiwan yen from the inheritance of his grandmother. He lived there and rented out the extra rooms. The rent he received was more than the interest of the mortgage he needed to pay. Therefore, he also had 6,500Taiwan yen income every month. After half year, he sold the house at tow and half million Taiwan yen.
It is very convenient to shop with a credit card nowadays. You do not need to bring a lot of cash, therefore, you can shop freely without worry. As a result, a lot of people over spend and are unable to pay off debts. Using credit cards is a good way to consume but is impossible to save money.
In China, [wheai] was invented during economic hard time. Since the eleventh century, the poor peasant was forced to pay 100% to 200% interest during famine by the rich landowner. As a result, a lot of peasants became drifters and caused social instability. In order to overcome financial crisis peasants organized a financial system to help each other. That was the beginning of [wheai].
