I get the theory of borrowing money at low interest rates to invest it at a higher rate. And I'm reading the blogs of people who make this work for them. Work the Credit card offers of zero percent interest, borrow the money in just the right way, transfer to the 0% card, all the while investing and earning money on this "free money".
I get it. My finance degree admires them for working the system. Take opportunity and seize it. Bleed those credit card companies dry. I really do like it. I wish it was for me.
It isn't for me though. I don't want be in debt in order to make money. I don't want to be leveraged. Its not within my risk tolerance. I'm a fuddy duddy who is happy at being financially solvent for the first time in many years. If I wasn't doing so much cross border stuff I'd lose my visa and just keep a debit card. I rarely use my visa unless I'm in the US. I like not owing people money. It feels good. It feels nice not to have bills looming over my head.
Maybe its because I'm lazy. I don't want to be as diligent as I would need to be in order to make sure I danced the dance perfectly to ensure that I never had to pay a late fee or any other rip-you-off payment the CC companies create to gouge consumers.
I keep thinking of that poor Aussie fellow who played with dangerous animals and died. I know its not a nice analogy but it keeps coming to mind.
So this little lazy risk adverse girl is going get her thrills on this money making strategy not by doing but by cheering on those others who make it work for them. So excuse me while I go oggle and admire their daring-do while keeping my pennies in a jar in the freezer *grins*
Borrowing money to make money
September 7th, 2006 at 03:04 am
September 7th, 2006 at 03:45 am 1157600706
Fascinating to watch, and terrifying to contemplate.
I'm with you.
September 7th, 2006 at 02:40 pm 1157640019
September 7th, 2006 at 05:59 pm 1157651977