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The no.1 personal finance advice is pay your credit card balance in full every month. The exception is when you have a credit card offering a 0% interest promo
by xwdv 6y ago
The no.1 personal finance advice is pay your credit card balance in full every month.
The exception is when you have a credit card offering a 0% interest promotional period. As long as your overall credit utilization is low, you can pay the minimum each month to maximize the amount of time your money sits collecting interest. I usually pick up a new 0% promo card every year to get cheap financing for large purchases while my money appreciates in the stock market.
- war1025 6y agoThe amount of interest a savings account is going to accrue in that time is negligible to the point of being worthless.
- xwdv 6y agoNope. Invest the money into an S&P 500 ETF and you’ll probably gain 10% profit by the time you have put down your last payment.
- throwaway201103 6y agoThe S&P return is not always and certainly not guaranteed to be 10% or even positve. Some months/years it is negative. It's an exceedingly bad idea to keep cash that you will need in the short term (< 5 years) invested in equities.
- xwdv 6y agoIf you sell OTM covered calls of about 10 or 8 delta against the shares you own and keep rolling them after sufficient theta decay you can conservatively add 1% ROI each month on top of whatever appreciation your shares get. So yea you have a good chance of getting 10% ROI per year consistently this way unless S&P is down more than 2% for the year. Unfortunately so many people use this strategy these days that the bids are lower than what they used to be though.