The Millionaires Club

There is no discussing wealth without touching on the issue of credit! While it would be wishful thinking to expect everyone reading this to have good credit, I know many do not, and I will spend time in the upcoming weeks discussing how to turn around your credit in as little as 2 weeks!

Millionaires never use cash, and there is a reason for it! A millionaire understands one thing that much of society doesnt, and what the credit card companies do not want you to know, which is how to get them to pay you, and make money all tax free!

Look at the fine print regarding the benefits of your credit card, are you getting Cash back? If you arent then, you might need to reconsider.

There are many cards that offer cashback, American Express Blue Rewards is one which offers as much as 1-5% back. Basically if in a year your total expense on your credit card is $50,000, you could receive a nice fat check of $2500 at the end of the year from American express, and this money is not taxable as it is not income but a return of the money which you have already dished out! Of course this is only effective when you have no balance at the end of each cycle and have to deal with interest.

How cool is that? Of course no the $2500 isnt for you to splurge but think if you took that $2500 and invested in a mutual fund earning 20% a yr, in 10 years, your $2500 would now be worth $15,479.34

Let’s not even talk about if you took it and invested in the emerging markets (which we also plan on discussing in depth because its a windfall with calculated risks) that the likes of Warren Buffett invest in, we could be talking a future worth of 6 figures all from $2500 (or rather $0 since its cash back)!! its no wonder his company returns 160%.

Now you see why some get wealthy even without earning 6 figures+ while some celebrities like Mc Hammer make us shake our heads and wonder

Its easy to find things to spend money on, maybe you are taking graduate courses, paying for kids in college, business travel, house repairs…anything!!

Internet mogul John Chow talked about this on his blog, Why You Should Never Pay Cash read this for his experience.