Tuesday, 11 August 2015

How to live a Rich Life using Credit Cards?

I recently opened a bank account in UAE and the day after, I received many offers of credit cards from FGB, Emirates NBD, Citibank etc. etc. brochures piling up. You need to look at the different rates offered by those banks and grab the lowest possible rates.

How a credit card can help you live a rich life?

The goal is not to overspend and paying the due amount on time before incurring penalties. I don't believed that you need to literally cut it because there is a hidden benefits of having it in your pocket. Using it wisely and properly will show how discipline you are in handling finances.

1. Promotional offers. Of course, you will not use it every time there is an offer for a dinner for two, use it on special occasions like your birthdays and dinner dates. If you are going to treat your family for a delicious dinner then look at the list of restaurants that offered promotions if you use the credit card.

2. 15% discount. In your first use, most of credit cards offered 15% discount on a specific outlet like baby shops, ZARA, GAP, Redtag etc. etc. or you can use it to buy an electronic gadgets. In my case, it will be useful to buy for my baby's clothing.

3. Accumulate miles. Every time you are going to travel whether business or leisure, use the credit cards to earn points and convert it later into round trip ticket. A friend of mine, travel every year without spending a dime after 10 years of accumulation. Last time, he flew in Italy for Expo 2015 on a business class for free.

4. Credit days. It could be 30 to 45 days depending on the banks policy. You need to watch on the date to avoid penalties especially if you are withdrawing cash on your credit card. You will understand it better later, once you run and own a business and deal with suppliers on credit.

5. Emergency. Of course, you should have a set emergency funds and touch it only for emergency. If there is any important offers that you need to grab and you did not allocate a budget for it then credit card might be useful.  Like for example, you consistently investing in the stock market monthly and adding funds on your stocks portfolio then it hits the buy below price or any opportunities that encountered that month.


Again, this post is not to encourage you to overspend but to become a disciplined finance manager.

Sincerely yours,

Jonathan Ruiz
NEWBIE Mentor

P.S. I will be holding a special webinar, if you are interested to earn more than the usual 12% yearly, join me on this link http://pamrichfriends.com/special-ghost-stocks-webinar/

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