How to beat the bank algorithm by going cashless

Inspired by the No.10 method in cilisos - saving by using canggih* bank algorithm. 
*means advance/super 

The idea is to use credit card instead of cash to save money. 

I know most people use this method. I been doing this for 5 years (before I started working). In case you wonder,  here is the breakdown of the math and how to do it step by step. Everyone can do it.

The concept 

The whole idea is based on credit card standard feature. A whooping of 21-Interest free days from statement date provided the carryover balance is 0.  So the maximum interest-free days you can get is 51-days from the day of transaction. I usually aim for 40 days. Achieving 51 days is a bonus.

Step by step:

1.       Find out the cut-off date of your card aka the statement date.  
2.      Pay with a credit card whenever you could - plan your purchase on the first week after statement date or rotate the card you use. 
3.       Whenever you have extra 1,000 or 5,000 on your account, make an e-FD.
4.       Set payment reminder on your phone. If you need, doodle the dates on the calendar. 

The math:

Every 1,000 earns you RM2.50 a month + credit card rewards at RM10 - 50 range (points or cash back).  It’s worthwhile if you travel for work where your hotel spend can come up to a few thousand. You could even further pinch it with 0% transfer. The benefits is there but it depends on individual if the hassle is worthwhile. 

So you see, I never understand why some people hate credit card. Is credit card risky? So is driving 100km/hr on the road. It doesn’t matter what tools you are given, at the end of the day, it’s all about your perspective and how you manage yourself.  

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