How to earn 1-1.5 crores with other many more features by using a credit card?
Who does not want to earn more? And who does not want to earn more with free money? And if you earn using a credit card, it will be icing on the cake.
Today, I have brought you a trick on earning using a credit card.
You must have heard of people saying that don't use credit cards or that using credit cards is very dangerous.
Sometimes they are right on this, but this is not a correct statement applicable to all.
How do people get tricked by using Credit cards?
I will give you an example. Let's say your salary is 30000 rupees but you have a credit card and the credit limit is 75000 rupees.
In this case, you would be thinking that I can do the shopping of expenses till 75 thousand rupees. Later when the time will come for the payment, then you will see you have a shortage of money to pay the credit card bill. Here, maximum to maximum credit card holders are stuck in credit card companies' tricks.
Obviously, Credit card companies think of you as the fish. So they will give credit cards with higher limits even knowing that your salary is less. So, they will try to provoke you and you will spend more, but you will be unable to pay. So that you can pay 3-4% interest every month (35-50% yearly), and they can earn more.
Next, there is also a feature provided by the credit card companies to us as "Minimum Due". This is another high-level trick they play with us. Let's say you have a salary of 30k and you spent 50k through a credit card.
So you can hardly pay 15-25k max that month, since you would be having other expenses that you cannot do with a credit card. So, when you will see the monthly bill report, you will see there is also another thing written as "Minimum Due" as 2500 rupees.
So you will get much excited and you will tend to pay 2500 rupees instead of even paying 15-25k what you could have done. here, the real game starts.
Next month when you will see the bill, you will see there is no reduction of the amount, rather so much even is added as interest charges.
Once you are stuck in this game, it becomes really hard to come out of it. Then you will beg your friends/family members. Later you will have to take a personal loan to clear it off.
Hope you understood why many people say "Don't use a Credit card or using a credit card is dangerous".
But ladies and gentlemen, we don't have to become lazy fishes, rather we have to become active and clever fishes, who will eat the feeds and won't even stuck in the nets. Understood?
I will guide you today so that you won't be doing mistakes and even will earn a lot from a credit card, which you never even expected.
How to Earn Money Then?
I will take my example. I spend nearly 1 lakh per month using a credit card to do all my expenses.
So, credit card companies don't charge anything on my expenses till the next 45 days. meaning I am getting this as my free money, that I can do whatever I can do.
So, let's say I am going to pay this bill every 30 days. meaning the amount of 1 lakh which I have to pay, can be paid after 30 days. If that's so, why not earn interest money on that 1 lakh rupees?
If I keep this 1 lakh money in my regular saving account, I will get only 3-4% interest.
So, I will do one thing. I will reach out to my back and will ask for an auto sweep account, or enable that feature in my account so that anytime the amount balance in my savings account exceeds the specified limit, the excess funds are automatically transferred into the fixed deposit (FD).
So, I can expect at least a 5-6% return out of that amount.
Let's say, if my 1 lakh amount goes to that account, then for 1 month, I will get around 400-480 rupees as a return.
This is free money, and it looks small, though it is not. But, I will not spend this amount rather I will put it in a Mutual Fund SIP for 30 years, then my total investment is 1.44 lakhs, but I will get 14.12 lakhs (by considering only 12% return from the index fund). Wow!!
But if I increase it to 40 years, then my investment will be 1.92 lakhs but the return is 47.53 lakhs. And if you can keep it for 50 years, then the total investment will be 2.4 lakhs but the return will be 1.58 crores.
I know you will say who will live till that date. Let me tell, you are doing this because you want to live. even if you don't live, then it will be helpful to your wife/children. After all this is free money.
Suppose if you can keep it for 40 years, and fund returns you 15% then total investment will be 1.92 lakhs but return will be 1.26 crores and 5.59 crores for 50 years investment.
I know you will say not everyone is able to spend 1 lakh rupees every month. But if you are having a credit card and doing any purchases, then try to do maximum to maximum purchases by credit card, but within your income limit and paying capability.
Let's say that is 25k every month, then you will get 100-120 rupees as interest on top of 25k from you FD account of the bank. you create an SIP of 100 rupees only and you will put totally 48000 rupees in that SIP in 40 years, but you will get 11.88 lakhs as return. If it is 50 years, you will get 39.45 lakhs as return on total investment of 60000 rupees.
You will get 7.01 lakhs if you keep for 30 years by investing total 36k rupees and the return percentage is 15%.
You will get 31.4 lakhs if you keep for 40 years by investing total 48k rupees and You will get 1.4 crores if you keep for 50 years by investing total 60k rupees.
You Can use this SIP calculator also to do the calculation by yourself 👇👇:
SIP Calculator
Isn't it so interesting? 👍
Other Benefits:
The benefits of Investing in SIP are Easy on pockets, Disciplined approach, No need to time the market, Power of Compounding.
Along with this, you will get the sign-up bonus, cashback on purchases like groceries, gas, or eating out, entertainment, etc., airport lounges, reward points on travel or fuel, referral bonus, annual bonus, etc.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Happy Investing!!👍
About Author:
Welcome to NewsWiseStories! I'm Blog Junkie (Sipu).
I look to sharing my passion, ideas, thoughts, and knowledge on stories, news, finance, health tips, jobs, etc, with all of you from time to time through my blog posts to make these valuable for you.
Thank you for joining me on this incredible and exciting blogging journey & stay tuned for my upcoming articles!
Warm Regards/Blog Junkie (Sipu)
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