Memo #2 – Remember to use credit cards.

Before you heed this piece of advice, please first make sure that you are not:

-          -  An impulsive buyer

-          -  Prone to overspending

-          -  Living above your means

-          -  In debt

If you don’t fall into any one of the categories above, then swipe away.  I charge everything I can mainly because:

1.  Credit cards earn points.  Yes, we’ve enjoyed gift certificates worth tens of thousands from all the points we’ve racked up over the years.  We furnished our daughter’s nursery mostly through points.

2.  0% instalment plans.  Even if you can pay for your purchase lump sum, this makes everything lighter.  It allows you to enjoy your purchase without having to pay in full...yet.  It also means more money in your account on month end.  That’s money you can invest, enjoy, and grow before surrendering it.

3.  Credit terms.  Credit cards give you a window of approximately 30 days before you actually have to pay up.  I remember a purchase I charged on my card.   It was something that I intended to resell.  I was able to resell and collect payment on the item before my statement even arrived.

4.  Discounts and privileges.  Lately, most banks have been very aggressive in marketing their credit cards.  I keep around 3 cards for different purposes.  It could be annual fee waivers, discounts with various establishments, and rebates on your purchases.  Eventually, all these will add up.