|Image from BDO|
PC Upgrade - my credit card purchase
From the moment I was planning to upgrade my personal computer, I really needed money for P10K. I said, "If only I have a credit card, then upgrading my PC won't be a problem which I can pay it for installment." But P10K is too much for an upgrade and it is good to buy another system unit. So I asked my IT friends for advice. I have a dual core computer and I don't want to change the whole thing because I am not a heavy user. My tasks for my online job are article writing, blogging, link building and some graphic design. I need to retain my dual core processor but upgraded the motherboard, RAM and added a video card. My plan was not to spend more than P10K and great it was only less than P6K, 0% interest with 3 months to pay.
Since my computer is an investment for my online job. I am confident to pay the installment in just three months. But before using your credit card, it is really safe to SAVE money EQUALS the worth of your PLANNED PURCHASE. This is also applicable if you are planning to buy some expensive gadgets.
Gadget I want to purchase: Nikon D3100 - DSLR camera
Price: P30K - estimated budget
Payable to credit card with 0% interest (Y/N)?: Yes
Money need to save before purchasing and using credit card: P30K
While saving money for an estimated budget of your purchase, there is a tendency that the price will get cheaper later. By the time you reached P30K on your savings, we don't know that the price of Nikon D3100 will be less than P25K because of the latest DSLR cameras out in the market.
Same time, this is hitting several birds in one stone. While having P30K on our savings account, we can put the other P10K on time deposit, another P10K in an (existing) investment with 10% interest per annum and just leave P10K on savings account. If you have an income which it can pay your monthly dues then you will be safe in paying the gadget and at the same time your money is GROWING.
So how do you use your credit card? Do you use it for your needs or your wants?
P.S. I am not a financial expert/adviser. I am just sharing to you some of my strategies that I hope could help. ^___^