Earn, save and protect your money


Archive for July, 2014

Making money with credit cards

Sunday, July 6th, 2014

Credit card is not only part of our wallet, but also part of our life. Credit cards are double edged swords. If you use it right, it helps you. If you use it wrong, it buries you in pile of debt. I use credit card for all my purchases. I do this not only for convenience but also to easily track my expenses in Quicken. I always pay the credit card balance in full when it is due. Never ever carry credit card debt, that is just very bad for your financial health and credit score.

If you have a habit of using credit card for most of your purchases and paying credit card balance in full when it is due — here is a way to make some money. Apply for credit cards like Fidelity Investment Rewards credit card. These cards pay you 2% cash back for most of your purchases. There is no annual fee for fidelity investment reward card. If you have an account with Fidelity, the reward cash goes directly into your account. If you have rollover IRA with Fidelity, it gets even better! Your cash back will go into your retirement account and grow nicely over the years. If you typically spend $1,000 per month on credit card purchases, you will accumulate $10,729 over 20 years! (Assuming that you earn 7% per year in your retirement account investments)

If you are going to use your credit card anyway, why not make use of your habit to make additional $10,729 into your retirement account?! If you know of any other cash back credit cards, please share with us. If you like this blog post, you will also find our posts about ISIS wallet useful.

Word of caution: Never sign up for reward credit card that charge annual fee.

Good habits to learn from rich people

Saturday, July 5th, 2014

Wall street journal published a useful video about what we can learn from rich people. Check it out at here.

Takeaway is “live like poor” even if you are rich!

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