Using Credit Cards and Random thoughts
Well, as I begin week 3 of personal freedom, I have the following observations.
My checking account is holding its own. Of course I am still receiving money from my former employer. And I received my tax refund. Business is not booming, but February did show substantial growth from a year ago. My business is still not where it needs to be to support me 100%. But my goal is to have it there in six months, not tomorrow. I figure I can go at this pace for at least seven months, before touching my cash on hand.
One way to free up extra cash, and this is not a recommendation it is just a technique, I have used, is via credit cards. If you have any credit at all, you probably are inundated with free credit offers. Although as interest rates rise, these are probably becoming fewer and fewer, however I did just open another one last week. Most of these offers give you anywhere from 3-18 months of free credit. Now, you generally can't use them for free cash, but you can use them to pay expenses like utilities, and probably many of your suppliers. Or use them in your personal life, and use that money to grow your business. One of the best lessons I learned from reading 'Rich Dad, Poor Dad' was debt that produces assets is good debt. And I am here to tell you while donned in my new office attire of sweats and slippers, that is a lesson well learned.
I have repeated this process now four times, the new card will be my fifth. One card I repaid, the other three are still open. I have the cash available, now to pay them all off when the time comes. So, in effect I have gotten interest free cash, to the tune $16,000, try getting that through the SBA. Now before you poo-poo $16K, that goes a long way in internet business.
And for me it has proven a very sound money management tool, that has helped me grow my business
When reading the applications be sure to look at transfer fees and annual fees if any. The best have neither, some will have one or the other, if you don't plan to transfer balances that one does not matter, but stay away from annual fees, they are a thing of the past in most credit card offers. Transfer balance offers are also attractive down the road, when the time comes to pay off your free credit balance, if you don't ahve the dough, or don't want to pay it off, transfer it to a low interest rate offer, many offer low rates intil the balance has been retired. Use common sense and don't go hog wild. But if your return on your business is say 25%, then even paying some interest is a good investment.
My checking account is holding its own. Of course I am still receiving money from my former employer. And I received my tax refund. Business is not booming, but February did show substantial growth from a year ago. My business is still not where it needs to be to support me 100%. But my goal is to have it there in six months, not tomorrow. I figure I can go at this pace for at least seven months, before touching my cash on hand.
One way to free up extra cash, and this is not a recommendation it is just a technique, I have used, is via credit cards. If you have any credit at all, you probably are inundated with free credit offers. Although as interest rates rise, these are probably becoming fewer and fewer, however I did just open another one last week. Most of these offers give you anywhere from 3-18 months of free credit. Now, you generally can't use them for free cash, but you can use them to pay expenses like utilities, and probably many of your suppliers. Or use them in your personal life, and use that money to grow your business. One of the best lessons I learned from reading 'Rich Dad, Poor Dad' was debt that produces assets is good debt. And I am here to tell you while donned in my new office attire of sweats and slippers, that is a lesson well learned.
I have repeated this process now four times, the new card will be my fifth. One card I repaid, the other three are still open. I have the cash available, now to pay them all off when the time comes. So, in effect I have gotten interest free cash, to the tune $16,000, try getting that through the SBA. Now before you poo-poo $16K, that goes a long way in internet business.
And for me it has proven a very sound money management tool, that has helped me grow my business
When reading the applications be sure to look at transfer fees and annual fees if any. The best have neither, some will have one or the other, if you don't plan to transfer balances that one does not matter, but stay away from annual fees, they are a thing of the past in most credit card offers. Transfer balance offers are also attractive down the road, when the time comes to pay off your free credit balance, if you don't ahve the dough, or don't want to pay it off, transfer it to a low interest rate offer, many offer low rates intil the balance has been retired. Use common sense and don't go hog wild. But if your return on your business is say 25%, then even paying some interest is a good investment.
posted by johnson at 2:24 PM
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