Best approach to use credit card

During my conversation with my boss today, he also shared how rich people use the loop holes in credit card to delay the payment. According to him, they have at least 2 credit card in use and this is how they use it.

The users will have 2 credit card. For example, 1 credit card statement cut off at the beginning of the month, the other at the end of the month. Next, each card is marked with their statement date; for example, card 1 = 5th of the month, while the other 20th of the month.

Now they will use the card which has a different cut off date. If today is 10th, they will use card 1 to do any purchase. If its 2nd, they will use card 2. this way they could prolong the delay and avoid being charged the interest. These approach allows them to have approximately 50 day to do the payment without penalty.

How do they get 30 days? 30 days for card usage, 20 days for payment. This approach helps hardcore card users to prolong their credit and maximize usage. It will take great discipline to control usage so that users do not overspend

Again I would like to emphasize how rich people get richer. As you can see these people despite the fact that they are rich, they are able to find ways to reduce cost of each usage. The moral of the story is, we need to control money usage to increase saving. Just saving is not enough. We need to find how the money flows in every transaction and manipulate their loop holes.

The best approach is never there. It requires your understanding on how things work and using one’s creativity to manipulate the loop holes. Today my interest on money raised dramatically as I saw how bosses use their money. Maybe if I have time, I will try to research how money works and try to find some ways that best suit my way of spending.

Now I know that my spending method is one that could never make me rich. I need to find the best approach for myself. Lets hope I will be able to do it. Maybe I could share here in my blog if works.