The M Society

I am not here to boost how holy-ultimate the credit card. But more on practical uses of maximizing your financial position.

Uses of Credit Card

• Smoothen out your cash flow

I am not asking you to cash out using the credit card. It is the most stupid move of all unless in a serious situation. Cashing out using your credit card will impose an immediate interest card on the amount you cash out. With interest compounded daily. So DON’T CASH OUT.

Using credit card on groceries shopping or any purchase, you can smoothen your cash flow. It is all because the ability to delay your payment. At the same time, you will be able to keep track of what you have purchased, when is it purchased. All in the statements. If it is cash, no way will you want to keep all the receipts around.

• Ability to earn extra one month of interest

This can only be shown in the long term or any large purchases you make. Let’s say you purchase something pretty expensive, around $1000. If you were to use cash to purchase it, you are forgone the interest gain on the $1000 immediately. However, if credit card were used you are able to delay your payment up to a maximum of a month or longer depends when you make your purchases. You get your purchase, and keeping $1000 in the bank longer for interest. So in real terms, the purchase is actually less than $1000. The bank is happy, you are happy, everyone is happy.

more on uses on credit card. wait for next post!

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Most financially literate people loves the wonders of credit card they can bring but some people do not. They hate credit cards because they hear lot of bad news about people falling into the debt hole. It is an undeniable truth that a lot of young people had declared bankrupt because of credit card. But have you ever sit down and think about the wonders credit card can gave you if you are able to control it?

Of course, if you can’t manage your funds wisely. It is better off not having it, it is like giving a gun to a 13 years old child compared to giving a gun to a highly trained military personnel. It will produce an entirely different outcome.

So think about it!

I will explain more on the next post. So wait up!

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Stay away from credit cards and invest in yourself.

If you are able to afford of what you spend without owing debt, then this topic is not for you, otherwise it’s important.
Today’s most young people are damned by debt, YES, debt. These phenomenon debts were mostly caused by the use of credit card. It is not surprising that most young people have credit card(s) because some merchants and credit cards issuers will go in order to entice people to spend beyond their incomes with various “interesting” packages such as no fee and low fee cards, instant approvals, contest and much more.
Practically everyone loves to spend money because it’s fun and exciting. Advertising messages are irresistible, that young people routinely take credit card debt and spend 20-30% of their money or with all their might. It’s the poor spending habit and practices that makes them fall into the debt hole.
For the past decades this phenomenon only appears in America alone, but now it’s a global issue. Young people must learn how to manage their financial in order to stay away from poverty or heavily loaded with debt.

I, myself do not have credit card(s). I use cash (most of the time). If I’m out of cash, I will not buy to overspend of what I earned; therefore I’m free from debt. It is better to be debt free than having those unnecessary materials which keeps you look good or other factors. In the future of course, I might register one card for the sake of emergency, and I say “ITS FOR EMERGENCY USE! NO SHOPPING OR WHAT SO EVER STUFF”.
It’s more realistic to spend your money and invest in yourself. For an example, I just bought a set of golf set to learn golfing, rather than buying laptop which I don’t need. Golfing is a good sport, whereby I get to know and socialize with more people, and I can exercise my health to a tip-top condition. This is what I call investing in myself. For my dad, he invests in his knowledge. He buys a lot of books to improve or update his knowledge. His home office is piled with books (and I call it a home library).
As Warren Buffets and my dad days it, invest in yourself to improve and update to keep up with modern information and technology, rather than buying things which you don’t need and worst of all after buying all the things using credit cards, you can’t afford to pay and in seriously DAMNed DEBT.

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