They’re planning on you screwing this up. That’s how they bet. They’re planning on you paying interest. Most do. The bank thinks like that. They give other stuff out too–like candy. Who else does that?
Credit cards trip a lot of people up, but not anymore. Most people hate banks. Not here. We love them, because they have things we need, and we know how they are. We also like the wonderful things they do–like cash back cards, and the occasional CD. Our favorite play here is using a card to build an asset, like a CD or index shares. That way we may just continue to be paid, for years yo. Let’s investigate.
The Flexibility’s incredible. Flog your FICO this season, in a good way.
You built your FICO, or credit score. Good FICO’s do not occur by accident. Every time you use credit wisely you push your score higher. Debt is not a dirty word, when structured sanely.
Wise borrowing builds credit. Great credit creates financial opportunities. Credit is a crowbar. Lever it.
Money is a time-based resource. Money wears a price tag. That price is set by the fed funds rate. Why pay to use someone else’s money? Card issuers would come over to your house, if required, just so you will use their money. Who doesn’t do that?
Savvy people receive interest, not pay it. Mortgage and auto loan interest are the sole interest most people should accept.
Money’s been very cheap for very long. That’s about to change. Time remains to make hay, using the bank’s money. That is, if you’ve learned to recognize the money game of inches. Remember, a yard’s made up of what–inches.
If you spotted a Jackson blowing down your street, would you stop to pick it up? If the anwer is no, stop reading. If on the other hand you know the difference between a Lincoln penny and an Andrew Jackson $20 then we have good news. Free money exists. Card issuers offer free money everyday to millions. Be one.
Card issuers love students because they know some are not good cash managers, and even undisciplined. Free motivation to U. Use it, and their cash. Never fails to make us giggle. Let us know how you did–Contact StockJaw, above.
Would you bend over to pick up a $20 bill in a parking lot? If not then you really don’t appreciate your own efforts. You bend over for your employer everyday.
Money’s like snow. it sticks to its own kind. Ever build a snowman? Same thing. The small nut you roll to start, ends up as a giant ball. Money does that–money wants to do that. Are you helping, or simply watch train after train leave the station without you? That is the train to better things. Looks like no big deal. Wrong. Remember. It’s a game of inches.
The Money Train runs daily with tons of open of seats. If your credit’s good, not even great, there’s an open seat for you. For reservations punch in the # provided with your 0%APR mailer. Need an appliance? Hit the big box store for free financing. Same thing–free money. Use their’s. Invest yours.
Guess how they raked in the cash for those laptops? Sweet. Find a cash card. Open a brokerage account, inside an IRA. How hard is that?
Here’s the formula. Free financing means free use of other’s money. That’s value you can leverage. No? Example; StockJaw’s current collective FICO score is 834 on the 900 scale. That’s considered exceptional. We agree. As a result the promotional offers we receive are great.
StockJaw is now loving Bank of America. We are currently being paid to use BofA’s money for 15 months. Our APR is 0% for 15, and we were paid $150.00 for hitting the $500.00 threshold during the initial three months. In addition we receive the BofA 1-2-3% cash back schedule. So, we’re being paid to use the bank’s money. We do, all the time. So can you. Nice. If your response is “big deal” then you don’t get money. That’s called “leaving money on the table.”
The power’s in your hands. Great FICO? Search cash cards and make it pay.
Comparecards.com–“10 Best Cash Back Cards.
Properly using 0% APR offers mean you are being paid to be wise, when you handle it correctly. Here’s a break-down, including rules.
1. Find your cash back card, one that pays you where you usually spend. Trouble qualifying? Read up on how to boost your score. Talk with consumer credit counseling for info about how credit scores work.
2. Use your card for normal purchases.
3. Pay the minimum on that card, while holding back the money normally used to pay it down.
4. Follow above procedure until you’ve amassed your nut. Base the size of this nut on how much you can comfortably pay back within the 0% APR period.
Now you have a fat stack.
How do you make that pay?
Your 4 Ways to make your FICO pay.
1. Putting it to work.
Open an IRA account. Contribute to it. Buy a low-cost index fund inside your IRA. Or buy shares of FB.
2. Stash it in a CD as emergency money.
Find an actual high-yield savings account. Synchrony, an online bank has been offering 1.20% for savings, with no minimum. Yes, that 1.20%, or the 1.25% offered for certificates of deposit will not match our approximately 2% inflation rate. However, liquidity counts. How much are you making now on your cash?
3. Build a cash wad. Why?
No lesson carries as much weight as cash in hand. Seeing that wad good creates vision and motivation. No? Try it.
4. Use that 0% offer conventionally. Finance a big ticket item, like an appliance.
This is you after putting a little back. Borrow the banks money. Earn interest on it–not much, but you’ve created an asset, one that’s now both yours, and it’s working for you. It’s worth doing just for drill. Rainy days don’t seem so dreary.
Precisely how that works. Financing a big purchase. Buying an appliance for $2000.00? Use the 0% APR financing offered by the retailer. If you get 1 year at 0% do this. Divide the total purchase by 10. If you pay $200.00/month your done in 10. Simply ask yourself if you are comfortable with a $200.00 payment per month. We always do this math. It’s the key. Cutting the offer’s 12 months to 10, or 18 to 15, tells us all we need to know. Shaving off 2 or 3 months builds in slack.
1. Pay off all interest-bearing credit card balances ricky-tick.
2. Know the terms of the deal.
3. Use only one promotion per card. Purchases on top of promotional offers become restrictive. Read the card issuer’s payment application policy.
Smallish moves over time create big returns. The game of inches. Promotional care offers are not the point. Perspective is the point. Most people seem to feel that financial wellness occurs in large chunks. It does for some but the fabric of that financial wellness is woven by insight and perspective. Fact. Most high earners do not accumulate big piles of wealth. Why? They spend it. Most people simply “live up” to their new increased income. Soon they wonder how they could have even “made it” without the new cash infusion.
The haves’ and he have-nots’ are primarily distinguished by understanding and vision. If you can’t see it, you can’t get there. If you don’t understand money you won’t ever have much. Same goes to those who say it doesn’t matter. Explain that to the Fiat driver in the hospital. You’ll have to use the phone to contact the Mercedes driver in the same wreck. She’s not in the hospital.
Oh, and you remember when we said at the top “and build your FICO?” Every time you borrow money in any fashion, open a line of credit, and use it with discipline your credit ratings rise, including FICO. A couple of things rating agencies inspect is the amount of your available credit you use. 10% is the optimal amount. Of course on-time payment history is huge. Enjoy.
Thanks for reading. Keep looking.
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Investopedia.com. Seriously Wonderful. Fact.
Charles Schwab. In Our Opinion, the best broker going.
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