Why I Paid American Express $5.33 Today. . . And You Should Too!
Image source: @cardmapr, Unsplash
Most people would consider $5.33 a small amount of money and paying this amount to be over the top if not crazy. But. . .
Paying this ‘amount’ could be critical.
The $5.33 could have been my statement balance, which is due on or before the payment date. But that month it wasn’t.
For one, with this particular credit card American Express Amex card gives me 3% cash back on purchases at U.S. restaurants – statement credit. EASY.
I just have to remember to use the card when I dine out and frequent restaurants including Starbucks and McDonald’s.
To receive the statement credit – the benefits – I have to keep my credit card account in good standing. This means I have to pay at least the minimum payment (minimum amount) due on time.
I pay off my credit cards in full, typically every week [but that’s a story for another blog post].
As I’m sure you are [perhaps painfully] aware, you have to pay your credit card bills [and most other bills] on time in order to keep your account in good standing, continue receiving the benefits your credit cards offer and keep receiving a particular service. And maintain your credit rating.
Your credit rating is super important in terms of getting credit, your ability to borrow money and more. Think interest rates on credit cards, home mortgages, car loans, and more.
The higher your credit rating, the lower your interest rates and the greater your ability to borrow money. After all, credit card companies, banks and auto finance companies don’t like to lose money! They really don’t want to repossess your car (in most cases).
And the more likely you’ll qualify for premium credit cards.
In fact, recently, I was able to obtain the Capital One Venture Visa X, a premium Visa card, which gives me added benefits and more savings on travel costs.
BUT more important, it’s all about the discipline. And creating systems to help you realize your financial goals. Precision counts! Attention to detail wins!
When I got divorced (2007), money was tight. A few times, I was late paying my credit cards and once or twice had to pay costly interest expense – probably at 21% per annum (year). OUCH!
After that, I programmed my credit cards companies to pull the minimum payment or the full balance no later than the due date.
This automates my payments and ensures that I’ll comply with the credit card company’s rules and requirements – assuming there’s enough money in my checking account to pay the minimum payment due or the statement balance.
Automating payments saves time and money too. And helps me track my money and stick with my personal budget.
The focus on pennies, and you know that I believe that pennies do count and add up to big dollars – big savings – helps you adopt and maintain the wealth-building mindset. And that’s what drives your financial success and wealth-building. Create your own sound financial system and put it to work for you today!
While you’re developing a disciplined personal financial system to achieve your financial goals, why not save some money on groceries and put more money in your pockets.
To Save More Money on Groceries, Every Day – click here.
See you next week.
Arthur V.
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