Turn Your Credit Card into a Money-Making Machine! 💰

Hey there

Welcome to edition #14 of Aspire Compass

Let’s talk about something that’s in almost everyone’s wallet—credit cards. They can be your best financial tool or your worst enemy, depending on how you use them.

Most people fall into the credit card trap—spending money they don’t have and getting stuck with 35-40% annual interest rates (which is just criminal!). But if you’re smart, your credit card can actually help you earn free money. Yes, free money!

The Biggest Credit Card Mistakes to Avoid

🚫 Paying only the minimum due – It may seem manageable, but it leads to massive interest charges over time.

🚫 Overspending beyond your means – Never spend more than what’s in your bank account. A credit card is a short-term loan, not free money.

🚫 Missing payments – This damages your credit score and results in late fees and higher interest rates.

🚫 Using credit cards for cash withdrawals – Cash advances come with high-interest rates and extra fees from day one.

🚫 Ignoring reward programs – Many credit cards offer cashback, discounts, and travel perks. If you're not leveraging these, you’re missing out on free benefits.

How to Use Your Credit Card the Smart Way

✅ Pay your bill in full, on time – This builds a strong credit score, making it easier to get lower-interest loans in the future.

✅ Leverage interest-free periods – Most credit cards offer a 30-45 day grace period where you can use their money without paying interest.

✅ Maximize cashback and rewards – Use your credit card for everyday purchases like groceries, utilities, and fuel to earn points or cashback.

✅ Track your expenses – Use your credit card statements or budgeting apps to monitor spending and avoid debt traps.

✅ Set up automatic payments – Avoid late fees by automating your credit card bill payments.

✅ Pick the right card for your lifestyle – Choose a card that aligns with your needs—travel perks, cashback, or business expenses.

How I Earn Money with My Credit Card 💰

I put all my monthly expenses on my credit card (groceries, bills, shopping, etc.). Instead of paying it off immediately, I invest that amount in a liquid mutual fund that gives me around 6% annual returns. When the bill is due, I withdraw the money, pay in full, and keep the earnings.

Here’s a simple breakdown:

• Suppose I spend ₹3,00,000 per year on my credit card.

• I invest that amount in a liquid mutual fund that yields 6% per year.

• That means I earn about ₹18,000 per year in interest—free money!

💡 Bonus Tip: If I use a Uni Card or a credit card with 1% cashback, I get an extra ₹3,000 per year. That brings my total free earnings to ₹21,000 per year—just by using my credit card wisely!

Final Takeaway

Credit cards can be a powerful financial tool if used correctly. Pay in full, take advantage of perks, and turn your regular expenses into passive income.

Are you using your credit card smartly, or have you been caught in the trap before? Hit reply and share your experience! I’ll share my top credit card hacks from readers in the next edition.

See you in the next edition

Stay financially smart,
[Arif Hasan]

Aspire Compass

📌Important Disclaimer:

This newsletter is for information and educational purposes only, the above are not financial advice. We are not associated with any of the listings from above (unless mentioned otherwise). Do your own due-diligence.