A part about being wealthy is learning how to control and save your money. Notice that I use the word control before save. That's because you can't save your money unless you know where it's going.
In fact, most of the people, when I congratulate them on their promotion saying, "Wow, you know I heard you just got a pay raise, so how are you saving your money?"
Do you know what they say? "I don't know where it went." And a lot of us, we don't know where that money goes. To a lot of us we think that, hey, if only my income were to increase, all my problems will disappear.
There is a theory; that, your expenses, if not controlled, always rise to your level of income. So the person who makes $5,000 will be broke, even if he gets a super pay raise and makes 20k a month, he will also be broke.
That's because he can't control his money. So track every single dollar you
spend and let me share with you a strategy on how I track every single dollar because it takes a lot of time and it's very tedious. You know what, I use credit cards.
A lot of people when they talk about credit cards they say that credit cards are evil that credit cards make you spend more money, thus it's no good.
But do you know? Credit cards can be a very powerful wealth creation tool. Credit cards are a double-edged sword. It can create more wealth for you or it can destroy your wealth.
Here are some pointers.
Always fully pay off your balance every month.
Never just pay your minimum balance, pay your full balance, because when you pay your full balance you do not pay a single cent on interest. And if you do that, number one, you get two months of interest free money.
How? That's because, when you buy something from a shop, when will they bill you? They only bill you one month later. And when they bill you one month later, you only have to pay one month after you get the bill.
So it gives you two months of interest free money, if you use the credit card to buy something.
Number two, by buying thing on your credit card, what happens? Your credit card is going to record every single transaction you made. So it helps to track where your money goes.
And the third thing is that by using your credit card again and again, you can collect all these bonus points which you can redeem for free gifts and saves you a lot of money.
So that's why credit cards can make you more money, track, control and help you save money.
