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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