Try not to use your cash, use your credit card for payment whenever you are allowed.
Why use Credit Card?
Firstly, some banks offer cash rebate from 0.75% to 5% for payment made via Credit Cards.
Secondly, to collect and accumulate Credit Cards’ rewards points. Don’t underestimate this rewards points, you can redeem something from the banks when you have enough points. I seldom redeem products; my first choice is always CASH, Money, Money and Money. Second choice is CASH VOUCHER and third choice is product that I need.
Thirdly, to take part in Credit Card Contests to entitle FREE Gifts or try your luck to win prizes and CASH.
Lastly, you can keep track on how much you have spent on that month. You can check online or wait until the credit card statement sent to you; you can manage your money well if you know where your money went. Make a habit to go through every item charged to your Credit Card to prevent fraud.
So, if everything uses Credit Card to settle, what to do with your cash? Well, what I do is dump the cash into my Flexi Loan account; by doing so, I can save the daily rest interests on housing loan for one month.
Just a quick calculation for items that I pay via Credit Card every month:
Electricity Bill – RM100
Streamyx & Telephone Bills – RM55.55
Life Insurance (Own) – RM150
Life Insurance (Wife) – RM110
Education Plan (Son) – RM120
Zero Interest Installment (LCD TV) – RM270
Petrol (2 Cars) – RM300
Others – RM200
Total – RM1,305.55
This amount is my monthly “fixed cost” which is also the minimum expenses; I can collect at least 1,300 rewards points per month and save the interest of RM1,305.55 (around RM50/year) from my daily rest housing loan.
What if I have to spend more for car servicing, shopping, quick rent, assessment etc? Then I will collect more rewards points.
But bear in mind, always use your Credit Card for all payments but always treat your Credit Card as CASH, not future money and fully settle your Credit Card’s outstanding amount every month, never gave Banks have chance to earn interest from your Credit Card.
Why use Credit Card?
Firstly, some banks offer cash rebate from 0.75% to 5% for payment made via Credit Cards.
Secondly, to collect and accumulate Credit Cards’ rewards points. Don’t underestimate this rewards points, you can redeem something from the banks when you have enough points. I seldom redeem products; my first choice is always CASH, Money, Money and Money. Second choice is CASH VOUCHER and third choice is product that I need.
Thirdly, to take part in Credit Card Contests to entitle FREE Gifts or try your luck to win prizes and CASH.
Lastly, you can keep track on how much you have spent on that month. You can check online or wait until the credit card statement sent to you; you can manage your money well if you know where your money went. Make a habit to go through every item charged to your Credit Card to prevent fraud.
So, if everything uses Credit Card to settle, what to do with your cash? Well, what I do is dump the cash into my Flexi Loan account; by doing so, I can save the daily rest interests on housing loan for one month.
Just a quick calculation for items that I pay via Credit Card every month:
Electricity Bill – RM100
Streamyx & Telephone Bills – RM55.55
Life Insurance (Own) – RM150
Life Insurance (Wife) – RM110
Education Plan (Son) – RM120
Zero Interest Installment (LCD TV) – RM270
Petrol (2 Cars) – RM300
Others – RM200
Total – RM1,305.55
This amount is my monthly “fixed cost” which is also the minimum expenses; I can collect at least 1,300 rewards points per month and save the interest of RM1,305.55 (around RM50/year) from my daily rest housing loan.
What if I have to spend more for car servicing, shopping, quick rent, assessment etc? Then I will collect more rewards points.
But bear in mind, always use your Credit Card for all payments but always treat your Credit Card as CASH, not future money and fully settle your Credit Card’s outstanding amount every month, never gave Banks have chance to earn interest from your Credit Card.
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