So here is the way this is explained. It takes money to make money, atleast some money. Let's say that you have a credit card, a Visa for example, that has $2,000 available. You want to take advantage of some opportunity and you are considering using your Visa to invest $500 into your business, for whatever purpose.
When you use your Credit Cards that investment will reflect as a purchase. Tpically you will have 30-45 days before any interest is accrued and any payments are required. As you know, Visa, M/C, Disc, AmEx, etc, will not require that you pay the full $500 off in the first 30 days, on a typical Credit Card.
You will get your bill and it will reflect the purchase of $500. However, the minimum monthly payment on that is only about $20.
Now for this strategy to work, and for the business to pay for itself, you need to be generating atleast enough money to cover that payment of $20 so that no money comes out of your pocket. In that case the business is paying for itself and you can begin operating on profits without having to come out of pocket, up front, the $500.
Now many of you will start thinking about making minimum payments for the rest of your life and high interest rates. You are thinking like a consumer. You need, instead, to be focusing on the ROI ("Return On Investment").
We never advise using Credit Cards unwisely. You have to have a plan for your investment and then stick to the plan. But this example gives you an idea of how to use the Credit you do have to help you build and grow your businesses. Your Credit Cards also protect you against FRAUD.
I could go on for the next two hours about this but I would rather hear from you. Leave your comment below or email me at brett@classifiedwealth.com if you are considering using your Credit Cards this way. I look forward to hearing from you if you have any questions or comments on the above strategy.
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